In March, Alibaba launched a special version of its Taobao app that focuses on the so-called customer-to-manufacturer (C2M) model, which has been behind the rise of PDD. PDD's growth has come from smaller Chinese cities.īut now Alibaba and JD have put a larger focus on gaining ground in these lower tier cities and have released products to compete with PDD. IPO and fundingĪlibaba and JD have found success in larger so-called tier 1 and tier 2 cities in China which include the likes of Beijing and Shanghai. "We're here to serve everyone, and wanting value for your money isn't dictated by where you live," a PDD spokesperson told CNBC. GMV refers to the total value of all orders for products and services placed on the Pinduoduo mobile platform, regardless of whether the products and services are actually sold, delivered or returned, according to a financial filing from the company. That means that 55% still comes from tier three cities or below. Last year, PDD disclosed that 45% of its gross merchandising value (GMV) came from first and second-tier cities. ![]() "They (PDD) have made no in roads into existing market share of tier 1 cities," Jacob Cooke, CEO of WPIC, an e-commerce tech and marketing firm that helps foreign brands sell in China, told CNBC. JD.com and Alibaba appear to dominate in the so-called tier 1 cities in China. 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.Ī large part of PDD's user base is from smaller Chinese cities where there are perhaps more price-conscious consumers. "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." "Direct buyer traffic to PDD is primarily generated from word of mouth referrals by its existing buyers as well as the effect of its marketing campaigns," Shanghai-based Guotai Junan Securities, said in a report from March. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower ![]() ![]() Best Debt Consolidation Loans for Bad Credit
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