A low-cost growth model
12
13
Conclusion
Ecommerce is hyper-competitive, especially in China. It is important for new players to stand out with unique offerings that attract customers, and Pinduoduo is one such case, crafting a convergence between social and commerce that discovers and capitalizes on a new source of user in lower-tiered cities.
5
Age distribution
6
7
Business process
Users side
Positive users
Groupon
Negative users
Shipments Refund
8
Register
Business process
Merchants side
¥
Guarantee Deposit
PINDUODUO
Business Analysis
1
1.Introduction 2. Business Model
目录
Contents
3. Vital factors 4. Conclusion
2
3
Position
Pinduoduo (PDD) was started in 2015, and since then, it has seen a meteoric rise. The company reported having 114 million active users in January 2018 and is behind only Taobao (425 million) and JD (145 million).The revenue base increased five-fold in 2018 to $1.9 billion. The company is estimating revenue of $4.1 billion in 2019.
Online Goods
Campaign Enrollment
Home page/ Campaign
9
Revenue form
89.5%
Marketing service Commission
10
11
Vital Factors
Focus on lowpriced goods
Appropriate commodity category selection in the initial stage
14
THANKS
15
Pinduoduo has become one of the largest ecommerce apps in
China.
4
Users distribution
65%
It boasts a 300 million-strong user base, with 65 percent of its users coming from third-tier cities and beyond.
6
பைடு நூலகம்
Although this trajectory is unique, a lot of brands and platforms can take cues from Pinduoduo’s success. By applying some of these tactics to your own business, you too can have more users with stronger levels of engagement.