But now Alibaba and JD have put a larger focus on gaining ground in these lower tier cities and have released products to compete with PDD. 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. WeChat is a key part of daily life in China and allows people to make payments within the app. When a user selects an item on Pinduoduo, they can choose to participate in group buying. But within the world’s second-largest economy, the e-commerce firm is growing faster than major rivals Alibaba and JD.com and gaining share quickly.
Tik Tok App Brings a New Traffic Empire for the Merchants in China
Alibaba took a controlling stake in Singapore-based Southeast Asian e-commerce site Lazada in 2016 and has since invested money in the business to expand its presence in the region. Alibaba also has a separate website called AliExpress that services markets like Europe and the U.S. American consumers are also becoming more price aware after two years of elevated inflation. A slew of retailers have announced price cuts in recent weeks to entice people to spend money on things like new clothes and Should i invest in apple decorative items for the home.
How much does it cost to do business in the Pinduoduo?
This is evident in many game-like features that Pinduoduo uses to re-engage users, including special deals and promotions. You get free products for getting friends to install the app, and there are leaderboards showing people who have had the most friends sign up. You win coupons by spinning a wheel on an in-app game, then the coupon only lasts 2 hours, prompting an impulse buy.
On top of that, keeping yourself updated on brand competitors is an effective strategy to determine where the business stands in the industry. It’ll also save you time and money as these details will tell you which strategy is worth trying and which is a waste of time. You can also implement search engine optimization strategies to boost your promotional content on platforms like Baidu, Shenma, or Sogou. Appearing on organic search results will help your brand gain credibility and authenticity in the eyes of local consumers. When it was first launched in China, Pinduoduo users were predominantly female.
The incredible rise of Pinduoduo, China’s newest force in e-commerce
Besides, elderly retirees’ community in China has showed especially loyal to Pinduoduo. They may not have a lot of money to spend, but they want to take part in the national pastime and, on the way, offer their family members discounts as a way to combat loneliness. Duo Duo Orchard was the first popular game on the platform, users can grow virtual fruit trees, collecting water droplets to water their tree by shopping, browsing, and interacting with other users on the platform. The Mini game is an in-app games to allow users enjoy playing the online game beyond purchasing.
- Its 366 million monthly active users trail only Alibaba, outranking better-known rivals such as JD.com.
- One price is for individual buyers while the other is for community group purchases, and is generally lower.
- In this way, all the products provided by the shopkeepers on the platform are operated independently and each product sample will be previewed and priced by an operator at the Pinduoduo end.
Collaborating with KOLs can give your brand or product a boost in reputation and credibility. If you want to access it, you can directly download the app files from the platform’s website. In return, users will receive free fruit from Pinduoduo after the virtual tree reaches its maturity virtually. If you don’t reduce the price to 0 within 24 hours you don’t get the item for free and you have to start all over again. Every friend that clicks on the link (no purchase required) drives an incremental discount for the initiator.
Pinduoduo’s global ambitions
The advent of the internet and the mobile internet has boosted the profits of commerce, so that the first companies in these sectors made a lot of money. trading system and methods by perry j. kaufman Nowadays, more and more competitors are sharing mobile Internet traffic, while online traffic has become more expensive than offline traffic. The sales of most manufacturing companies are based on third-party channels, without support for independent marketing and own purchases.
JD.com and Alibaba appear to dominate in the so-called tier 1 cities in China. Its half-year report showed a considerable slowdown in both revenue and profit growth, compared with the year prior. Nongfu blamed increasing competition, online attacks, and “malicious defamation” of the company and its founder for the sales slowdown. Since the counterfeit credibility crisis, Pinduoduo has begun to focus on evaluating the products and services offered by shopkeepers, leading to conflicts between the two sides.
Pinduoduo’s growth came from an existed crowded Chinese ecommerce environment, dominated by Alibaba and JD.com. The in-app game is aiming top 5 swing trading indicators to mimic a real shopping experience for the users in order to maintain as longer as the user retention. The Free Pass Card enables users to enjoy the group-buying discount without having to form a team.
The overall value of goods sold there has already reached around $154 million. So, if you want to generate visibility for your Pinduoduo shop, platforms like WeChat, Weibo, or Douyin can help you achieve this goal. All products ordered by a certain group are deliverable separately to each member’s address. Want to have a first free consultation session about e-commerce and digital marketing in China? Pinduoduo is literally recognized as a consumer-to-manufacturer (C2M) model, consumers create value for manufacturers and provide merchants ideas for the production according to the consumer demands.