It enables these buyers, often women in charge of household purchases, to obtain deep discounts by getting their friends to participate in group buys of items ranging from produce to diapers. Business Model Pinduoduo is a mobile-first e-commerce marketplace that is known for its value-for-money merchandise and viral marketing. The name Pinduoduo means “Together, More Savings, More Fun.”  It’s a great summation of the company’s core group-buying value proposition, which has been described as “Groupon on Steroids.”   But there are key differences. Compared with the difficulty of removing the 50 yuan red envelope, the lottery must get a more convenient discount. New users will get more money and old users will get less money, and guide users to take the initiative to pull new ones. Separate shopping sets a higher price, and uses the psychology of the user to take the advantage to guide the user to initiate a single order. If other e-commerce is using user interest preferences to guide users to place orders, Pinduoduo is using low-cost explosions to guide users to place orders. First, these gamification are still mainly one-sided profit and can not achieve mutual benefit. To break through the supply chain, many efforts should be made to develop the C2B model. Also from the beginning of the 15th and 16th years, smartphones have rapidly spread to cities below the third and fourth tier cities, and a large number of sinking users who have been taken into the mobile Internet have brought a huge wave of underutilized traffic benefits. The large fluctuations in production also lead to high production costs (for example: the production line is suddenly more and less, suddenly stopped, and the manufacturer’s effective utilization of production resources is extremely low). 1 . It has so many deals that I want to spend all my time and money on it.”. Merchants gradually gathered heard about Pinduoduo; new small and medium-sized businesses. If Huang could find a way to make buying the most mundane everyday household items exciting and fun, then app developers everywhere can try to find ways to do the same with their apps. I have more than 17 years of experience founding companies in the digital space, focusing on the future of consumer internet, mobile and marketing. Chinese e-commerce platform Pinduoduo is planning to raise up to $6.1 billion through a convertible notes offering and equity. The strategy of Pinduoduo with low-price discounts as its core was to solve 3 problems: The early stage of the establishment and development of Pinduoduo was in 2015 and 2016 when the e-commerce field began to advocate “consumption upgrading”. The so-called C2B is to mass-customize the supplier side after gathering consumer demand on the consumer side. The shopping scenarios and shopping guides adopted by traditional e-commerce can be roughly summarized into the following categories: The difficulty of satisfying the demand with clear objectives, the demand with ambiguous objectives, and the goal with no purposeful loitering increases in turn. I have more than 17 years of experience founding companies in the digital space, focusing on the future of consumer internet, mobile and marketing. Active users: 585 millions, with 167 million increase YoY. Interestingly, compared with the general e-commerce business-driven characteristics, Pinduoduo has strong product-driven characteristics, and excellent product design and gamification directly contributed to its success. None of these promotional hooks and viral strategies would work if the fundamental user experience wasn’t itself engaging. Driven by sharing on WeChat, Pinduoduo’s average customer acquisition cost is only $2, compared to $39 and $41 for primary rivals JD.com and Taobao. It is also important. For each product on Pinduoduo platform, shoppers can choose to buy the product individually, or initiate or join a team purchase. Pinduoduo is the fastest growing e-commerce startup in the history of China. Compared with the branded products on the market, the price is much lower. First of all, most of these merchants are small manufacturers or low-end sellers that cooperate with small manufacturers. To support the farmers’ upskilling efforts, Duo Duo University, Pinduoduo’s training arm, equipped entrepreneurial farmers with e-commerce operations know-how, as well as marketing knowledge and … Opinions expressed by Forbes Contributors are their own. Where Groupon focused on local vendors of “want to have” goods and services like fancy dinners and massages, Pinduoduo offers deep discounts for bulk purchases of everyday “need to have” household items. You may opt-out by. This can be seen as a unique form of empowerment of Pinduoduo to the supply chain, and also a more suitable way for Pinduoduo to guide small and medium-sized manufacturers to upgrade. For shoppers who love a bargain, it’s an irresistible experience. Going by the common classification of China’s municipalities into “tiers” of socioeconomic activity, about 60% of Pinduoduo’s users come from cities in the third-tier and lower, creating huge opportunities for the … First we downloaded the App and experienced it first hand. This is evident in many game-like features that Pinduoduo uses to re-engage users, including special deals and promotions. In summary, the company has been growing much faster than China no. 2019 full year Revenue: RMB 30.14 billions (130% growth YoY). Pinduoduo was founded initially back in 2015 as Pinhaohuo (PHH). 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