We explain how Pinduoduo works … The app works slightly differently from other platforms, allowing users to participate in group purchase offers. Launched in 2015 by ex-Google engineer Huang Zheng, the company operates a bulk-buying business model similar to U.S.-based Groupon. At the core of its success was a strong emphasis on social commerce, viral marketing & retaining users. "“If Pinduoduo focuses on selling low-end products only, then its monetization prospects will be difficult,” she said.“From a retail perspective, the population dividend is there for Pinduoduo,” said Analysys International analyst Wang Hui’e.Pinduoduo pinned its attraction on meshing online shopping with social media. Editor’s Note: Pinduoduo reported its numbers in RMB. Follow. According to Wang, an average user spends $50 on Pinduoduo per year -- this compares with $1,300 on Alibaba and $500 on JD.comWhat’s more, Alibaba is fighting back. It takes a cut from every transaction processed, though that number is limited because its offerings are so cheap. More than just a digital shopping platform, it is actually a social e-commerce app, which uses a “team purchase” model and uses social sharing on Chinese social networks, in particular WeChat. The company instead relies on an algorithm to parse user data and show tailored product listings.
I contribute to Forbes, and previously I freelanced for SCMP and Nikkei. “ If you don't have quality products, eventually people won't come back. Launched in 2015 by ex-Google engineer Huang Zheng, the company … Investors are swooping in. Pinduoduo has experienced a meteoric rise to the top of the Chinese e-commerce landscape over the last 2 years. Pinduoduo has seen explosive growth since its launch in 2015, becoming one of the largest ecommerce apps in China. This includes everything from $1 T-shirts to $80 smartphones. Unlike the maturing Internet population in Chinese metropolises, they are only recently online and depend on the ubiquitous WeChat as the chief source of information, including following their friends’ online shopping suggestions to place orders. I am a graduate of the Medill School of Journalism, Northwestern University. How Pinduoduo works? To get more consumers on board, the e-commerce giant launched in March a new service called Taobao Tejia, or Taobao Special Price Edition, which lets users make bulk purchases of cheap products in a way similar to Pinduoduo.“The Pinduoduo model is based on social media and has wider reach into a lot of new Internet citizens,” said Jason Ding, partner at consultancy Bain & Co. “Alibaba is trying to serve more high-end customers, but there are people who don't want to pay for premium, but value. So when she finally shopped online for the first time in 2015, Liu turned to an alternative platform called Pinduoduo, which offered cheap household products such as $1 toilet paper packs and $5 bed sheets.This works perfectly well for residents in lower-tier cities.