Pinduoduo Inc.
Pinduoduo Inc. (Nasdaq: PDD) is China's largest agriculture-focused e-commerce platform. Pinduoduo has skyrocketed since its 2015 launch to become China's fastest-growing e-commerce company, with a 7.3% market share, thanks to its popular group-buying business model.
Pinduoduo has ambitious plans to increase sales to $145 billion per year by 2025. Pinduoduo had 731.3 million active buyers (over the previous year) as of September 2020, with 643.4 million of them using the website monthly in 2020. Pinduoduo has introduced new market trends, such as social commerce and consumer-to-manufacturer (C2M), that have revolutionized e-commerce in China.
Pinduoduo is also the largest online agricultural product seller in China. It connects farmers and distributors directly with consumers. In 2019, it launched the AI-powered Duoduo Farm to help farmers in China's impoverished counties sell online and increase their productivity. Approximately 600,000 distributors sold farm produce through Pinduoduo.
Pinduoduo launched Duoduo Livestream in January 2020, allowing salespeople to promote their products through live video on the Pinduoduo app. As part of its Help the Farmers campaign, the company combined these two services to respond to the COVID-19 outbreak.
Pinduoduo collects surplus agricultural produce information and connects farmers and consumers by livestreaming the perishable stock. The service assisted 180,000 farmers in selling 120,000 metric tons of agricultural produce between February 10 and March 18.
Caixin News reported in June 2020 that Pinduoduo, the five-year-old retailer, had surpassed JD.com to take the number two spot in market share dominance. Customers are invited to form groups with others who want to purchase the same product under the group-buying business model. If a large enough quantity of the product is purchased, this can result in discounts as high as 90%.
Pinduoduo also promotes the previously mentioned consumer-to-manufacturer (C2M) model. In response to the need for a new way to buy groceries during the pandemic, they launched Duo Duo Maicai in August 2020, a grocery service where consumers can place orders online and pick them up the next day.
Founded: 2015
Headquarters: Shanghai, China
Official web: en.pinduoduo.com/
