Yes, the revelation that bulk-buying means lower prices will probably not shake you to your core. Coverage of live commerce in China tends to focus on the most influential and prolific livestreaming celebrities, such as Li Jiaqi, also known as the ‘Lipstick King’, or Viya, who in the lead-up to Singles Day 2019 partnered with Kim Kardashian on a joint … There are leaderboards, animations, and all the usual accoutrements you’d expect these days. The company has increased investments in research and development, marketing, and staffing, meaning it still operates at a loss. … So far 1,612,413 shares have traded compared to average volume of 6,155,730 shares. 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. What does Pinduoduo do? View All Result . - If you see something you’re interested in, you can join the team and help drive the price down. Tag: Pinduoduo. No joke. See more. “Neither of these companies understands how the other makes money”, Huang noted in an interview with Bloomberg. Under Huang’s leadership, Pinduoduo’s shares have quadrupled in the past year, turning the Shanghai denizen into China’s second-richest man with a fortune worth $43.2 billion in late June. In fact, was that just another copy? PDD just invested $200 million is electronics retailer Gome this week, providing access to a whole host of gadgets and gizmos on the platform. This trend has accelerated this year thanks to the coronavirus crisis and the resultant social distancing lifestyle. For a dress that is priced at RMB 39 on Taobao, one only needs to pay RMB 19 on PDD: and if one can invite 5or 6 friends to buy as a group, the unit price falls to only RMB 9.9 including delivery. The scale of “free traffic” Pinduoduo supplies to merchants. The Pinduoduo model has been described as consumer-to-manufacturer, or C2M. There's no doubt that we learn most about debt from the balance sheet. What has made its trajectory interesting for many has … That’s where Pinduoduo is cleaning up – so long as it can make those tight margins work. Consumers are at the heart of everything we do at Pinduoduo. The $160 billion e-commerce phenom eked out an adjusted net profit in the September quarter – its first since going public two years ago. Excerpts from this interview with Nicole Jao were featured in her TechinAsia deep dive on Explaining Pinduoduo, and whether the model can work in Southeast Asia Pinduoduo has emerged as a strong (if not leading) contender in China's e-commerce scene. But Pinduoduo does much more: they use these messages to continually recommend new products to the user. However It’s the Proper Factor to Do. A quick glance at Pinduoduo’s history and milestones . This page on their website is very revealing. See more. Last week, we discussed the difference between ‘social media’ and ‘social networking’. Does Pinduoduo work directly with manufacturers? PDD’s real innovation lies in its business model, and that is the element that its bigger rivals can mimic. How to buy shares in Pinduoduo. How Pinduoduo works? Huang wanted to merge the strengths of Alibaba and Tencent in ecommerce and social media, respectively. And what does Pinduoduo’s livestreaming launch mean? Source: Investor Presentation. On the right, a lemon I purchased from my local supermarket. Pinduoduo was founded in 2015 by an ex-Google engineer, Colin Huang. Founded in 2015, Pinduoduo is a relative newcomer to China’s hyper … How does Pinduoduo's grocery shopping service Duo Duo Maicai work? All content is posted anonymously by employees working at Pinduoduo. Health Check: How Prudently Does … Changes bring fresh doubts. Many consumers already buy in bulk, some at large outlets and others on a smaller scale through ecommerce sites like Amazon. Top story ... How does Pinduoduo's grocery shopping service Duo Duo Maicai work? This aligns PDD rather neatly with the Chinese government’s plans to modernize the country. Pinduoduo Inc - ADR (PDD) stock is trading at $97.29 as of 10:07 AM on Tuesday, Nov 3, a gain of $5.67, or 6.19% from the previous closing price of $91.62. So while it's hard to imagine that the CN¥325.0b company is struggling for cash, we still think it's worth monitoring its balance sheet. Not necessarily, so say the pros on Wall Street. And in the last month, the share price has gained 28%. We have found that consumers like to know the stories and people behind the product. Pinduoduo’s revenue surged 89 per cent to 14.21 billion yuan in the third quarter, beating analysts’ estimates of 12.34 billion yuan, according to IBES data from Refinitiv. See more. For example, the Pinduoduo Inc. share price has soared 225% in the last year. Declining cash and equivalents, which plunged 75% year on year to RMB 5.53 billion ($780.5 million) in Q1 2020 from RMB 22.50 billion ($3.35 billion) in Q1 2019. Many aspects … Pinduoduo set to raise US$6.1 billion to power next stage of growth as Covid-19 accelerates large-scale changes in consumer behavior . The ‘social’ part just means that the purchase happens on a social media website or app, in most cases. The former is asynchronous, intermittent, and not always that personal. PDD depends on WeChat, that ‘everything app’ that dominates online life in China, for the majority of its traffic. How does Duo Duo Farms help to alleviate poverty and create a sustainable future via the team purchase feature in Pinduoduo? Succinctly put, Pinduoduo boasts net cash, so it's fair to say it does not have a heavy debt load! This is the Pinduoduo company profile. What are the benefits for the farmers in China? We have found that consumers like to know the stories and people behind the product. Brands can broadcast to an audience that may or may not pay attention. Pinduoduo got the attention of the under-served, price-sensitive consumers by presenting them with a proposition they could not turn down. Watch this video for a detailed product walk-through (or click here to watch on YouTube): This is a content initiative by GGV Capital that includes insight, stories and thought pieces on the people shaping the lives of the next billion Internet users. Pinduoduo offers products such as clothing, fresh produce, household items and electronics. Pinduoduo Inc is an internet retail business based in the US. How does Pinduoduo work? Many platforms, Amazon and eBay very much included, have struggled to maintain this balance between an open platform and quality control. If you cannot use Chinese characters, it is preferable to use the Pinyin with tones.Only use the Pinyin without tones if there's no other option (e.g. Pinduoduo has been the prime beneficiary of the recent recovery in Chinese tech stocks. Pinduoduo grew its revenue by 130% last year. How does Pinduoduo work? Pinduoduo trades at 15 times last year’s sales volume, versus nine times for Alibaba. We can split the copycats into a couple of species, actually. The product, which has long been in beta form, allows users to register accounts and create teams. I would like to receive news and updates from GGV. Just one step from turning himself into a symbol, I assumed. Instagram’s new commerce features focus on removing friction in this journey, liberating us from our cash with increasing ease. December 1, 2020. There has been an assumption in the past decade that Chinese consumers are willing to pay a premium to secure high-quality products, particularly in major cities. I guess he has bigger concerns than minor name infringement by a borderline homophone. That can certainly be a source of strength for PDD. Online grocery shopping has taken off in China in the wake of the Covid-19 lockdown, making it one of the fastest-growing segments for e-commerce. In light of this, Pinduoduo’s preference for headlining with traditional companies like Costco and Disney is somewhat insincere. Pinduoduo reported encouraging earnings figures for the third quarter. In today’s competitive world everybody is looking for ways to innovate and make use of new technologies. Pinduoduo taps into a new market that is steadily becoming familiar with e-commerce: rural Chinese customers spent RMB1.37 trillion on e-commerce in 2018 — a 30% year-on-year increase. Here, we share some of the latest consumer trends we see emerging in China and the world. Here are some choice quotes from the PDD website: “We constantly provide merchants with consumer insights and preferences to help them tailor make products for their targeted customers.”, “By channeling analytics around consumer behavior and preferences, we hope to enable 1,000 brands to produce and sell products on our platform that are tailored to our users’ needs.”, “We facilitate direct sales between small-scale farmers and consumers by leveraging our insights on consumer preferences and aggregating demand to generate large order volumes for our farmer merchants.”. More. One poet captured it all: “As I silently look back, all the sorrows and joy, all the twists and turns, of life, vanished like sands in the desert. December 1, 2020. So I looked Diddy up and it turns out he was sued in 2011 (unsuccessfully, and you’ll soon see why) for $1 trillion in damages for, among other things, “causing 9/11”. On March 16, Pinduoduo (PDD:NASDAQ) released (in Chinese) an upgraded version of its internal communication platform 'Knock' to the public. Meanwhile, the market has paid attention, sending the share price soaring 148% in response. China’s Pinduoduo is on a roll. See more. This offers users the option to purchase a curated selection of items at lower prices and pick … Huge companies like Amazon and Google seem to operate from a position of immovable dominance, but Pinduoduo shows that new entrants can make an impact by innovating the incumbents’ business model. This is how it works: Users share Pinduoduo’s offering on Tencent’s social network platform. See more . Just like other well-known Chinese e-commerce platforms, it is not surprising to hear that the founder of Pinduoduo is one of the richest people in the world. Pinduoduo declined to comment on this story. Pinduoduo sell products at much wider discount provided certain volume is reached. 0 . The Taobao Special Offer Edition app has been a roaring success since its launch last month. This is the Pinduoduo company profile. (See reference by Parmesh Shah from World Bank) Why is Pinduoduo well-suited to help farmers and digitize agriculture? This appreciation for the work that goes into the making of a product often translates into higher sales. Given the clear appetite among Chinese consumers for this approach to shopping, there is room for more than one such app. Thanks to its impressive growth, Pinduoduo has attracted 731.3 million active buyers in the last 12 months, after just a few years of operation. As it stands, there are complex supply chains and inconsistent levels of demand, meaning we need standardized products that will last for as long as possible on the shelves. Pinduoduo is a rising e-commerce platform in China. It is also worth noting that Pinduoduo has become the largest online platform for agricultural products in China by enabling direct selling from farms to the dining table. Company part-owned by Chairman of SCL Group sought €200 million investment from Russians in 2015, How the Secondhand Clothing Industry Is Getting a Major Makeover (and Tapping $220 Billion of…, Luxury Fashion Begins to Move Manufacturing to Southeast Europe, Everything There Is To Know About Pricing Strategies For Your Mobile App, Months After Approval, Breakthrough Cancer Drug Given to Just Five Patients. See more. This state of affairs indicates that Pinduoduo's balance sheet looks quite solid, as its total liabilities are just about equal to its liquid assets. Compare … Well, we typically think of ‘social commerce’ through the perspective of social media at the moment. PDD’s group-buying groups. Pinduoduo’s model is customer-to-manufacturer (C2M), cutting out all the intermediaries — except themselves, of course. It’s extremely simple, in truth, and works by way of two parts: a web crawler and a web scraper. You’ve got your straight-up rip-off merchants, shameless in their attempt to trick us all into downloading their app instead. Where Amazon uses the data on its platform to create its own, high-margin products, PDD instead takes user data and packages it up for manufacturers. November 12, 2020. November 12, 2020. In other words, the customers do the marketing for them. Find out more. This was up 73 per cent from last year. When a user selects an item on Pinduoduo, they can choose to participate in group buying. Explaining Pinduoduo, and whether the model can work in Southeast Asia The growing popularity of social ecommerce in China has created a wave of disruption that changed ecommerce for good. With that important distinction clarified, let’s get down to it. On Thursday, Nasdaq-listed Pinduoduo saw its share price rise more than 12%, reaching a record high of $39.96. See more. How does Pinduoduo relate to the Passion Economy and the idea of monetizing individuality? December 11, 2020. earnings-and-revenue-growth. For example, ‘How can our brand get customers to buy stuff off us on Facebook?’, and so on. They are considered to be responsible for family purchases and more price-sensitive. The word “technology” itself appeared 106 times in Pinduoduo’s prospectus, compared to a modest 14 and 27 times in Costco and Disney’s 2019 annual reports respectively. Add … All content is posted anonymously by employees working at Pinduoduo. - If your item listing gains an audience, it will appear in more users’ home feeds on WeChat. Duo Duo Maicai is a natural extension of Pinduoduo's mobile commerce platform and an integral part of its ecosystem. November 12, 2020. We know that Facebook looks to WeChat to see which way the wind is blowing these days and it will have taken notice of PDD’s recent successes. China is known to be the factory of the world… This ‘A’-rated stock definitely deserves consideration for your portfolio. The New Investors; All Markets Summit; Give Feedback; Australia markets closed. Pinduoduo is about using social networking to connect with like-minded buyers, with clear benefits to reaching out to as many people as possible. Web scraping (also called web data extraction or data scraping) provides a solution for those who want to get access to structured web data in an automated fashion. Farmers feel relieved from the heartbreak of seeing their hard work go to waste as the fruits rot, as they ship fruits off in bulk to Pinduoduo shoppers, who typically get their produce at 60 to 80% off. by Mia Turner. The e-commerce platform, which has almost 700 million active buyers, has made it a strategic priority to digitize agriculture so that the efficiency gains … It has since increased its level of involvement as an intermediary between customers and manufacturers, with over 40 million suspicious links blocked in 2019, along with the removal of over 10 million listings. Pinduoduo dedicates itself to creating a commingled "space" between cyberspace and physical space, where users can find the most value-for-money merchandise that meet their different needs and derive happiness; ... We are encouraged and have every reason to believe that as we work hard day … Work; Technology; Industries. Below left, a real lemon I purchased from the market. Second, Groupon can easily become viral, and its daily discounts spread quickly through email. It went public on July 26, 2018 and took only three years to become the seventh largest Chinese Internet company next to Baidu, Alibaba, Tencent (BAT), Xiaomi, JD and Netease. Glassdoor gives you an inside look at what it's like to work at Pinduoduo, including salaries, reviews, office photos, and more. Five years later, Pinduoduo is defying expectations, skyrocketing from a startup to a company worth US$$93.4 billion. As such, they want users to engage with the app to have fun, even if it does not immediately translate into a purchase. For cities where the service is available, Duo Duo Maicai is featured on the main Pinduoduo app. November 12, 2020. They should also be able to match their supply with demand more accurately, cutting down on waste. This could be related to the recent financial results that were recently released - you could check the most recent data by reading our company report. PDD is NASDAQ-listed since 2018, when it was one of the biggest IPOs of the year. 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