Pinduoduo, A New Gateway to The Chinese Market
In 2020, Pinduoduo’s annual active users reached 788.4 million, surpassing Alibaba’s 779 million for the first time. It took only 6 years for Pinduoduo to surpass the Chinese super e-commerce giant.
How can a company established in 2015 achieve such a huge growth in a short period of time? Pinduoduo’s rapid progress is mainly due to its focus on agricultural products and its affordable and fun shopping experience for consumers.
As China’s current e-commerce platform with the largest user scale, Pinduoduo has also become a new gateway for global brands to embrace the Chinese market.
The world’s largest agricultural product retail platform
In the past ten years, China has gradually transitioned from PC Internet to mobile Internet, and smart phones, express logistics and mobile payment have all been popularized. Pinduoduo was born at such a wonderful opportunity to become a new e-commerce platform accessed through mobile applications.
In addition, the rapid rise of Pinduoduo is also due to its focus on agricultural products during its start-up period.
Statistics show that agriculture is one of the least digitalized industries in China. The current Internet penetration rate is still around 7%, which undoubtedly contains huge market potential. One of the keys to the success of Pinduoduo is to significantly reduce the circulation cost of agricultural products through logistics models such as the “last mile”. In addition, Pinduoduo’s original “groupon” business model also provides farmers with a large number of stable orders.
Due to the COVID-19 pandemic, Dodo Shopping is a virtual supermarket that provides local fresh products. It has been launched in more than 300 Chinese cities. Currently, on the Pinduoduo platform, there are already more than 12 million farmers selling agricultural products directly to consumers.
Pinduoduo’s next goal is to become the world’s largest agricultural product retail platform. Pinduoduo’s idea is to sell fresh products from “all over the world” to Chinese consumers, such as Spanish olive oil or Argentine shrimp. After all, Pinduoduo is already China’s largest agricultural product e-commerce platform.
In the context of the new crown epidemic, online food purchases in the United States and Europe have increased. Pinduoduo’s agricultural product sales model may become a model of global agricultural product e-commerce. Pinduoduo’s business model is precisely this kind of connection between customers and sellers, which makes the prices of products more affordable.
Embrace the new gateway to the Chinese market
After becoming China’s largest online market, Pinduoduo has become a new gateway and bridge for global brands to embrace the Chinese market. Pinduoduo provides an important gateway for overseas brands who want to enter the Chinese market. Among the major e-commerce platforms in China, Pinduoduo also has the highest proportion of young users.
Many premium brands from all over the world regard Pinduoduo as a bridge, connecting them with nearly 800 million consumers in China. These consumers are willing to try new brands that make them feel quality and affordable. For those brands who want to enter the Chinese market, Pinduoduo is a once-in-a-lifetime opportunity not to be missed.