English
Hrvatski
Ελληνικά
FrançaisAnd last year, JD rolled out a group buying app called Jingxi, which is also accessible through WeChat. Here’s a look at how the platform works, its financial performance and how it competes with Alibaba and JD.
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. Before you launch any campaigns to advertise your PDD shop, conducting a market study is a crucial step if you want a successful venture. This procedure allows new marketers to grasp the current trends and customer behavior within their industry. It’ll also give your team more insight into resonating with their potential audience.
How Does Pinduoduo Attract Millions of Users?
Many of these citizens lived in remote or rural areas where it had been previously uneconomical to ship products. Pinduoduo has captured this chance which helped boost itself through the rural online sales. Pinduoduo’s growth came from an existed crowded Chinese ecommerce environment, dominated by Alibaba and JD.com. The in-app game is aiming to mimic a real shopping experience for the users in order to maintain as longer as the user retention. This is important for the platform that most of the Chinese consumers reply heavily on the reviews and recommendations of the items from the existed buyers to make decision.
However, gaining an audience in China as a foreign business isn’t just as easy as putting your products up on the platform and hoping for avatrade review the best. Since Pinduoduo is largely based on Chinese social media, you’ll need to take steps to build your online reputation on those platforms. Here are the steps we recommend taking if you want to start selling on Pinduoduo as a non-Chinese business. If you’ve done all that and you’re ready to sell on Pinduoduo, just go to the website and register for a seller account. You’ll get to choose the type of store you have and fill out your store information before your account goes for approval.
Another counterfeit heaven in China?
At the time of IPO, Pinduoduo was already the second-largest online marketplace right after Alibaba. As such, it had surpassed well-established competitors like JD.com, which went public before Pinduoduo was even started. A team needs to be formed within a 24-hour timeframe and contain a set number of buyers willing to pay the price set by the manufacturer. On top of that, sellers often have to invest heavily in advertising and logistics – costs they ultimately pass on to consumers.
There are many factors, but one of the most interesting is how Pinduoduo has successfully gamified shopping for the most mundane algorithmic trading strategies everyday products to drive re-engagement and user retention. Pinduoduo users can invite friends and family on social media to join a group deal in order to generate discounts. By purchasing in groups, price-conscious shoppers attain more competitive prices. If you’re not based in China, Pinduoduo has a registration option for you, too.
Pinduoduo: Your Ultimate Guide to China’s Fastest-Growing Social Commerce Platform:
Pinduoduo’s C2B model allows it to ship directly from the manufacturers eliminates layers of distributors, not only reduces the price tag for buyers but also raises the profit of manufacturers. This approach is particularly effective for the sales of perishable agricultural and fresh products, where the speed for matching supply and demand is critical. The discount is usually up to 90 percent, including everything from RMB 10 ($1.50) bed sheets to RMB 1,000 ($150) PCs. More than 6.4 million units of tissue paper were sold at RMB 12.9 ($1.90) for 10 boxes and 4.8 million umbrellas were purchased at RMB 10.3 ($1.51) apiece. Digital economy observers outside of China can be forgiven for missing the meteoric rise of Pinduoduo.
Texas signs into law online safety bill reportedly opposed by Apple’s Tim Cook
- What draws so many users to Pinduoduo is that there are benefits to making these social connections like leaderboards, animations, games, and increasing discounts.
- Its users are drawn by deals on a wide range of good which include things like clothing, fresh productsm electronics, as well as common household necessities like tissue paper.
- The mechanism keeps the users motivated and better hooked for a more interactive and dynamic shopping experience.
- Chinese eCommerce platform Pinduoduo was founded in 2015 and offers a broad range of products—everything from day-to-day groceries to appliances for your home.
However, these advantages are typically realized by international buyers through intermediaries. If you have a warehouse/agent with a warehouse, product inspection in China and cost-effective delivery are available — you can try working with Pinduoduo. When choosing a trading platform, consumers should comprehensively consider these factors and select a more reliable and secure trading platform. At Sekkei Digital Group, we understand the specific complexities of PDD–including consumer behaviors and the ever-evolving trends that shape it.
The Significance of Colors in Chinese Culture and Marketing
As of 2019, the misbehavior of markets Pinduoduo has amassed a 7.3% market share, coming behind JD.com (16.7%) and Alibaba (55.9%) according to eMarketer. Tapping into the fastest-developing areas in China, Pinduoduo is a popular outlet for international brands to achieve high volume sales fast. The social nature of this platform has led to its exponential growth in third-tier cities in China. Second, Pinduoduo’s customer acquisition cost, as well as user engagement numbers, are significantly better than those of its main rivals. Sharing on WeChat, which doesn’t cost the company anything, is a main driver of sales.
- To hit the same milestone, Taobao took five years, VIP.com took eight years and JD ten years.
- By the end of 2016, Pinduoduo had already managed to attract more than 100 million users while monthly sales reached around $362 million.
- Accurately target and engage your audience, and lower your marketing cost at the same time, whether on Google or China’s own search engine Baidu.
- Users can share Pinduoduo’s product information on social networking platforms like WeChat and QQ messenger apps.
- For commercial purposes, it’s better to choose other Chinese marketplaces from which a stable supply chain can be established.
The fees are determined as a percentage of the purchase price of the merchandise sold by merchants. Weibo, or Sina Weibo, is like a Chinese version of Twitter (Twitter isn’t accessible in the country). Companies who use Weibo can share information-laden posts with Weibo users who engage on the platform with influencers, celebrities, and others with similar viewpoints. Want to have a first free consultation session about e-commerce and digital marketing in China? The Mini game is an in-app games to allow users enjoy playing the online game beyond purchasing. To get the item for free, the user must share their link with as many friends as possible.
Founded in 2015, Pinduoduo has grown to become China’s largest marketplace (measured by active buyers). A digital marketing agency like China Gravy can help your company to implement an integrated digital marketing strategy professionally, quickly, and at great value for money. And having a presence in the top positions will increase your website’s relevance and visits.
What to Do If You’re Not Based in China
When a user selects an item on Pinduoduo, they can choose to participate in group buying. Pinduoduo has connected more than 16 million farmers with users on its platform. In fact, the company invests a significant portion of its cash balances into ensuring the success of its farming partners.
Read along as we share insights on why you should utilize Pinduoduo for your local e-commerce business goals and guide you on how to navigate the app, from account creation to launching digital marketing campaigns. In March, PDD carried out a private placement of $1.1 billion worth of newly issued Class A ordinary shares. At the time, the company said the funding will help its “strategic flexibility for expansion to bring more interactive experiences and value-for-money products to our users.”
