Pinduoduo’s core audience are mostly novice online shoppers, but like many Chinese consumers, they’re avid bargain hunters. The key to Pinduoduo’s success is that it solves the following two contradictions.Unlike Taobao, Pinduoduo has no shops and shopping carts on its platform. This describes the consumer habit of insisting on rock-bottom prices for more humble purchases such as nappies and house slippers but cheerfully splashing out on luxury items such as designer sunglasses and handbags that enhance social status.Whilst rival Taobao offers a wider range of products, discoverable using search, Pinduoduo reduces any choice paralysis by only offering a small number of deals available in a time-limited period. The sales of most manufacturing companies are based on third-party channels, without support for independent marketing and own purchases. Almost everyone believes that Alibaba and JD.com have reached the ultimate limit of China’s e-commerce and leave no room for e-commerce startups. That leaves him well-incentivized to grow the company over the long run, as opposed to taking shortcuts to maximize short-term benefits.Many factors contributed to the company's success. But the extremely fast growth rate will always bring many problems at the same time, such as the problems of counterfeiting, logistics and services, and how eventually the unit price for each customer can be increased. It caused many Taobao shopkeepers, whose competitiveness is the lower price, to complain that they were treated unfairly by Alibaba.From Beijing, Shanghai, Hong Kong to New York, these cities have saw Jack Ma’s footmarks to carve out.
They are targeting people who will probably never go to New York, but do need facial tissue, and would rather get a great deal on it in a gamified format knowing that many others are doing the same thing as them. Returns as of 07/30/2020.Another important decision was its initial focus on smaller cities, avoiding main areas like Beijing and Shanghai. Source: Pinduoduo.Stock Advisor launched in February of 2002. They’re not targeting you, Rui, or me. Most traffic resources appear to be distributed to Tmall.com rather than Taobao.com. Its mobile-first, social e-commerce strategy positioned the company well in serving Chinese consumers in the smartphone era. Pinduoduo’s rise to success hasn’t been without its bumps in the road, and the company is currently still loss-making, grappling with the challenge of expanding its business into new markets while retaining its hold on those markets (China’s less-wealthy ‘lower tier’ cities) that brought it such success in the first place. The failure of social platforms in the UK to offer a seamless commercial experience until very recently must also be factored in.