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China Tech 101: Pinduoduo

Pingduoduo is an e-commerce platform that offers a wide range of rock bottom priced products from home appliances to daily groceries.

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ABOUT Pinduoduo

Pinduoduo is an e-commerce platform that offers a wide range of rock bottom priced products from home appliances to daily groceries. Its key differentiator from other Alibaba’s Taobao and JD.com is it’s ‘team purchase’ model.

Pinduoduo users can invite friends and family on social media to join a group deal in order to generate discounts. By purchasing in groups, price-conscious shoppers attain more competitive prices.

On Pindupdup, a pot sells for as low as RMB¥1, wireless earphones for RMB¥13.52, and a vacuum cleaner for RMB¥9.6.

The social nature of this platform has led to its exponential growth in third-tier cities in China.

As of 2019, Pinduoduo has amassed a 7.3% market share, coming behind JD.com (16.7%) and Alibaba (55.9%) according to eMarketer. Tapping into the fastest-developing areas in China, Pinduoduo is a popular outlet for international brands to achieve high volume sales fast.