What is Pinduoduo & How to Get Started Marketing Guide
Pinduoduo has leveraged its platform and developed the Internet+ Agriculture initiative to facilitate direct sales between small-scale farmers and consumers. The platform makes recommendations to consumers based on their shopping preferences due to which it is able to aggregate demand and generate large volumes of orders for farmer merchants. This reduces the farmer’s dependence on large distributors which reduces the overall cost and improves the supply chain. Behind that success has been its “social shopping” model that encourages users to share links to items they purchase with friends and participate in group buying. JD.com, which has historically invested in logistics infrastructure to keep overheads low rather than specifically lowering prices, has also begun throwing its weight behind discounting. In 2023, it announced an initiative to bring more competitively-priced products to consumers through welcoming smaller merchants onto its platform, which had previously been home to a tightly-controlled list of established brands.
- When a user selects an item on Pinduoduo, they can choose to participate in group buying.
- It also allows customers to purchase through popular social media apps in China, such as WeChat and QQ.
- You can also implement search engine optimization strategies to boost your promotional content on platforms like Baidu, Shenma, or Sogou.
- Sekkei Digital Group is an agency of digital hustlers, marketers, developers, and brand builders working between France and China.
- In 2015, Huang launched Pinhaohuo, a social commerce platform for fruits, with the team from his second startup Leqi.
“A portion of the Company’s buyer traffic comes from its user recommendation or product introduction feature which buyers can share with friends or contacts through social networks such as WeChat and QQ.” These efforts were particularly valuable for farmers during the Covid-19 lockdowns, when they struggled to find buyers for their produce. Pinduoduo launched an initiative called “Help the Farmers” in February 2020 to address this problem, visiting rural areas to teach farmers how to sell on Pinduoduo, and many of these sellers have stayed with the platform long-term. Pinduoduo entered the Chinese ecommerce scene in 2015, and rapidly grew to become one of its largest players thanks to a savvy combination of social features, gamification, low prices, and targeting the right audiences. In late November, its parent company temporarily overtook leader Alibaba in market capitalisation, making it – for a time – China’s most valuable ecommerce company. As Pinduoduo gets into life as a public company, the firm is following the e-commerce giants in cleaning up the platform.
The fastest growing platform in China — Pinduoduo
Data from research institute Jiguang shows that users from third- and lower-tier cities account for around 65 percent of Pinduoduo’s total user base, while JD’s users in first plus second-tier cities and the rest of China were half-and-half. As previously stated, PDD smartly integrated the app with ways to form a buying ifc broker team so consumers will be enticed to spend on bulk items. This model is not only cost-effective for the buyers but also eliminates the needed advertising and marketing expenses for brands. Pinduoduo is an e-commerce platform that offers a wide range of rock bottom priced products from home appliances to daily groceries.
1 WeChat facilitate Pinduoduo with its huge data base
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. But even more impressive is its 7-day retention rate of 77%, the highest of any e-commerce platform in China. This retention comes from the continuous re-engagement at the prospect of winning deep discounts. It’s the combination of the viral acquisition loop and the addictive shopping tickmill review experience that has caused Pinduoduo to become bigger than eBay in just four short years. The unique value of Pinduoduo mostly lies in its strong user engagement which differentiate itself and Groupon. The group buying model though is not just financial stimuli, besides, Pinduoduo utilizes the group buying model as its social incentives to encourage consumers to help them expand the user base through social platform sharing.
With our extensive expertise in this niche, we offer you the avenue to unlock your brand’s potential and secure a formidable position as a leading brand in the industry. On top of that, keeping yourself updated on brand competitors is an effective strategy to determine where the business stands in the industry. It’ll also save you time and money as these details will tell you which strategy is worth trying and which is a waste of time. After downloading and installing, users must provide details manually or choose other login methods. They can connect the app to their WeChat profile or give a mobile number for registration.
PARENT COMPANY
Further, the total number of active buyers on Pinduoduo in 2021 (users who placed one or more orders throughout the year) hit a record of 868.7 million, up 10% compared to 2020. In terms of market share, PDD is the third-largest e-commerce player in China behind Alibaba and JD.com, according to a report released in July 2019 by eMarketer. JD.com has reportedly also put billions td ameritrade forex review of yuan behind a subsidy programme for merchants – a move that Pinduoduo itself used in 2019 as it fought to gain headway against incumbents Alibaba and JD.com. In 2021, Pinduoduo unveiled a 10 billion yuan ‘agriculture initiative’ to “face and address critical needs in the agricultural sector and rural areas”, pledging to put its profits from Q onwards into the initiative.
All products ordered by a certain group are deliverable separately to each member’s address. Although Pinduoduo recently launched a website for its e-commerce system, the fastest way to access it is through downloading its app. Because of recent issues about security, you can’t download it from Apple’s App Store or Google Play Store. Want to have a first free consultation session about e-commerce and digital marketing in China?
Excitement is quickly intensifying surround the company, which claims 195 million monthly users and has managed to become successful within China’s highly competitive e-commerce market inside just three years. The big data and AI of the platform enables manufacturers to pinpoint the customer needs and preferences which ultimately to produce in a reasonable quantities of end products. Pinduoduo’s main users from these low-tier cities earn less salaries, they also spend less on housing, leaving them income available for frivolities. Unlike their urban counterparts, consumers from rural areas also have less entertainment options, they are more willing to collect discount buddies, participate in sweepstakes, and join online virtual games as their social entertainment life.
Your Social Commerce Partner in the Chinese Market!
In this piece, we’ll look at the tactics that have enabled its rise, how competitors are shifting their behaviour to meet the threat of Pinduoduo, and whether Temu can replicate Pinduoduo’s success overseas. Price and social features are not only the only path to Pinduoduo’s meteoric rise, and spotting the right user profile is the last piece to the puzzle. These influencers engage with their followers by creating engaging and valuable content like product reviews and live-streaming sessions.
Pinduoduo removes the middle-man from the supply chain and provides an opportunity for farmers to interact directly with consumers, thus helping them get a better price for their produce. Last year, PDD disclosed that 45% of its gross merchandising value (GMV) came from first and second-tier cities. In 2019, PDD said it had 585.2 million active buyers — those that made at least one purchase on the platform during the year. Alibaba said it had 711 million annual active consumers on its Chinese e-commerce marketplaces in the 12-month period ended September 30, 2019, the latest available figure. This encourages buyers to share links to the item they are buying with friends and family or over social media. But tightening regulation is causing more friction between Pinduoduo and its merchants on the platform.
So, if you want Chinese consumers to purchase at your PDD virtual storefront, transforming your branding communication into local nuances and languages is of utmost importance. If you look at the data in the graph below, it’s easy to see that the users have evened out between the two genders. In 2022, the male demographic has covered 51.8% of overall users in the platform, while the female user base gets 48.2%.