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Pinduoduo 拼多多 Company Profile on ChinaEDGE

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Duoduo Livestreaming is now PDDo’s answer on how to integrate live streaming into its business after Alibaba’s Taobao has already shown that live steaming is an effective marketing tool. Pinduoduo has launched a live streaming tool called Duoduo Livestreaming for “partners” who can boost the sales of goods on its platform. Pinduoduo has been intensifying its foray into the cross-border e-commerce industry. The company first launched the business in early 2019, announcing that it planned to work with large suppliers such as Nestle, Unilever, Swisse, Biostime, Gerber. The consumer can buy a full price item or get a discount if he invites other people to participate in the purchase. Today, 343 million shoppers use Pinduoduo for their online purchases and 60% of them live in the 3rd, 4th and 5th tier cities of the Dragon. In March, Alibaba launched a special version of its Taobao app that focuses on the so-called customer-to-manufacturer model, which has been behind the rise of PDD.

App Privacy

WeChat is a key part of daily life in China and allows people to make payments within the app. This encourages buyers to share links to the item they are buying with friends and family or over social media.’s annual active buyers reached 849.9 million in 2021 and are now essential for retailers and brands looking to do business in the Chinese market. A lot of work, the new e-commerce pioneer, is the mainstream mobile shopping app in China.

  • Lesser-known brands were chosen over famous brands to erase any premium that comes from branding.
  • SellersYou can open a store for free on the Pinduoduo Seller app with a phone number and a verified ID card.
  • Pinduoduo’s channel gives merchants more options than Alibaba and, and since it’s a new entrant, commercial terms could be better for brands and retailers who elect to sell on the platform.
  • JD is known for being able to deliver items on the same day or day after.
  • In 2015, Huang founded Pinduoduo with the vision of filling this gap that both companies could not fill.
  • Given Pinduoduo’s WeChat-based ecosystem, Tencent joined the round as a returning investor.

This additional visibility offers consumers greater peace of mind as they know that DotBigo does not sell fake products. Duoduo Livestreaming has already been integrated into the Pinduoduo app, allowing all its 536.3 million active users to be live streaming partners to promote millions of products listed on its platorm. "They have made no in roads into existing market share of tier 1 cities," Jacob Cooke, CEO of WPIC, an e-commerce tech and marketing firm that helps foreign brands sell in China, told CNBC. Pinduoduo has pioneered the concept of "consumer to manufacturer" (“C2M”) to help merchants tailor make products for its diverse user base. The consumer-to-manufacturing model aims to provide real time information to producers so that they can produce according to fast changing consumer demand. By cutting down on unnecessary production and guess work, fewer resources are needed and the cost savings can be passed on to consumers. It surpassed Alibaba, China’s largest e-commerce site, in terms of annual active users for the first time in its history.

Be careful of scam events, however great products

Viral marketing is a more clever way to build the identity of all the lesser-known brands on its platform. Financially, the platform could even out part of discounts with less marketing budgets. Users can discover and purchase products from a wide range of sellers. What sets DotBigo apart is the social aspect where users can easily share what they have browsed or purchased with their social network to shop together. Users get a clear benefit of shopping together while still having the convenience of getting the product shipped to them individually.

In November 2018, o launched an online Intellectual Property Protection portal to communicate with brand owners. By late 2019, over 12,000 brand owners had registered their IP rights on the Pinduoduo protection program.

Cost performance is still the most important factor to consider for consumers. A higher price tag does not necessarily represent the better quality or vice versa. The huge potential in this often-overlooked market is luring more competitors. Taobao launched Taobao Tejia, a dedicated app for China’s low-end users. Additionally, females account for 70 percent of o’s user base. Livestreaming helps alleviate some of these concerns, which is why Pinduoduo has come to the point of offering its customers a live tour of its customs warehouses and how operations operate there.

About this app

But the same traits that have propelled o to becoming one of China’s top shopping platforms and brought great success and wealth to its founder have also created new crises that might lead to his departure. Pinduoduo suffered a net loss of RMB 292 million ($43 million) and RMB 525.1 million ($77 million) in 2016 and 2017, respectively. Its net losses reached RMB 201 million ($30 million) in the first quarter of this year. The net loss is expected to be widened, mainly attributable to investments in branding and ads.

China Tech Landscape

But it is succeeding thanks to a new ecosystem consisting of super app WeChat, mobile payment infrastructure, and mobile-first users. Extremely low prices are another compelling attraction of pinduoduo. The discount is usually up to 90 percent, including everything from RMB 10 ($1.50) bed sheets to RMB 1,000 ($150) PCs. More than 6.4 million units of tissue paper were sold at RMB 12.9 ($1.90) for 10 boxes and 4.8 million umbrellas were purchased at RMB 10.3 ($1.51) apiece. In China, many companies integrate live streaming into their internationalization strategies, for their ability to engage large masses of users in minutes. In mid-May, over one million Chinese consumers tuned to Pinduoduo’s live streaming of its six customs warehouses, located in free trade areas across China. The hosts offered viewers a tour of the internal mechanisms of each warehouse, showcasing popular imported items such as imported milk powder, diapers and more.

Stammdaten zur Pinduoduo Aktie

Although o claims to have several channels to lower product prices, increasing product quality and counterfeit complaints still raise concerns for a possible low-cost and low-quality association. Complaints mainly target at the problems of poor quality, slow delivery, misleading ads, etc. In 2015, Huang launched Pinhaohuo, a social commerce platform for fruits, with the team from his second startup Leqi. In March, PDD carried out a private placement of $1.1 billion worth of newly issued Class A ordinary shares. At the time, the company said the funding will help its "strategic flexibility for expansion to bring more interactive experiences and value-for-money products to our users." A large part of PDD’s growth has been driven by the fact that it can be accessed on Tencent-owned messaging service WeChat, which has over a billion monthly users.

Social Commerce

Founded in 2015, o is one of the fastest-growing tech companies in the world and was listed on the Nasdaq in 2018. It offers various products, from daily groceries to home appliances. The products have very high quality and lower price compare to other similar apps. Temu, the online marketplace offering unbeatable wholesale prices anytime, anywhere, and in any quantity, is hosting the best Black Friday Sale with up to 70% off selected items across more than 250 product categories. On January 20, 2019, Pinduoduo reported the theft by hackers of tens of millions of Yuan in coupons to the police. An online collective of users exploited a loophole in Pinduoduo’s system and stole tens of millions of yuan worth of discount vouchers. In 2020, Pinduoduo launched an annual Smart Agriculture Competition to encourage data scientists and agricultural researchers to develop cost-effective and easy-to-use technology that can help boost productivity for smallholder farmers.

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