Shanghai Xunmeng Information Technology Co., Ltd. was established in 2014 and September 2015. It established the new social e-commerce platform Pinduoduo, which is now the company’s main product. At present, Pinduoduo platform has gathered 628.1 million annual active buyers and 5.1 million active merchants. The annual transaction volume of the platform has reached RMB115.72 billion, rapidly developing into the second largest e-commerce platform in China. Pinduoduo uses the original social teamwork as its core model, focusing on tens of billions of subsidies, agricultural products going up, and good origin, etc., and is committed to serving the most ordinary consumers in China. The Pinduoduo platform operates on the concept of “good goods are not expensive”, providing consumers with subsidies and discounts for big-name products, agricultural products of origin, factory products and new brand products. Among them, the tens of billions of subsidies initiated by Pinduoduo created a new record of the scale and duration of Chinese e-commerce industry activities. Pinduoduo was born out of the agricultural product e-commerce to make good products. The People’s Daily previously released a report showing that Pinduoduo has become China’s largest agricultural product ascending platform. In July 2018, Pinduoduo was officially listed on the NASDAQ Stock Exchange.
Always put consumer needs first
Pinduoduo is committed to creating value for the broadest number of users and making “more affordable and more fun” the mainstream of consumption. Since its establishment, Pinduoduo has always put consumers’ needs first, through the C2M model to minimize the traditional supply chain costs, to provide consumers with a fair and most cost-effective choice. Through a decentralized traffic distribution mechanism, Pinduoduo significantly reduces the traffic cost of traditional e-commerce, and it benefits both the supply and demand sides. Based on the platform’s big data, Pinduoduo helps factories achieve customized production based on consumer preferences and needs, continuously reduces procurement, production, and logistics costs, and makes “low-cost, high-quality” commodities mainstream on the platform. In 2019, the number of order packages on Pinduoduo platform has exceeded 19.7 billion. The potential unleashed by the new e-commerce model has also made tremendous contributions to stimulating China’s domestic demand and promoting the consumption upgrade in the broadest regions. At present, Pinduoduo’s products have covered many categories such as FMCG, 3C, home appliances, fresh food, home furnishing, and so on, and are meeting the increasing diversified needs of consumers at a sustained growth rate.
Promote large-scale upward movement of agricultural products, effectively help targeted poverty alleviation
Pinduoduo combines the innovative e-commerce model with targeted poverty alleviation, which provides an effective way to promote the large-scale upward movement of agricultural products. The platform’s “combined purchase” model can quickly fission and gather consumer demand, achieve large-scale, many-to-many matching, and deliver agricultural products directly from the field to consumers, turning the disadvantages of China’s agricultural production and demand diversification into advantages. Based on this, Pinduoduo actively responded to the call of the Party Central Committee and the State Council to win the fight against poverty and implement the strategy of rural revitalization, investing a lot of resources, reaching nearly 1,000 agricultural production areas across the country, market-oriented to solve the problem of covering agricultural production areas, and using technology as the basis Support the creation of a “central processing system for agricultural products”, innovate the model of “directly connected villages in mountain villages” with farmers as the granularity, and contribute positive forces to poverty alleviation. Based on the production and marketing model where the “first mile” is directly connected to the “last mile”, Pinduoduo strives to cultivate “new farmers” with Internet marketing capabilities, and strives to achieve the integrated development of emergency poverty alleviation and long-term hematopoiesis. By the end of 2019, Pinduoduo had accumulatively driven more than 86,000 new peasants to return to their hometowns, and more than 12 million agricultural producers were directly connected to the platform and new peasants. By streamlining the supply chain of agricultural products, Pinduoduo continued to increase the added value of the retained value chain, promote the optimal allocation of production factors, especially talents, and effectively stimulate the endogenous power covering the production areas to drive the industry to sink. In 2019, the total orders of agricultural products and agricultural and sideline products of Pinduoduo platform reached 136.4 billion yuan, an increase of 109% year-on-year compared with 65.3 billion yuan in 2018, and it became China’s largest agricultural product upstream platform. The annual number of active buyers of agricultural (by-product) products reached 240 million, an increase of 174% over the same period of the previous year. During this period, Pinduoduo has successively explored and practiced the innovative “Duoduo Farmland” and other innovative poverty alleviation models, effectively illustrating the increase in production and income of farmers in poor areas.
Promote supply-side reform and cultivate more Chinese brands
Pinduoduo is based in China and grows together with SMEs. The platform’s “purchase” mode with less SKUs, high orders, and short bursts not only can quickly digest the factory’s production capacity, but also help manufacturers quickly win the trust of consumers through “phenomenal” explosions and establish a brand image. By providing free traffic, Pinduoduo significantly reduces the marketing costs of manufacturers, and the platform continues to tilt resources to manufacturers who are interested in building their own brands, helping them transform and upgrade. Since its establishment, Pinduoduo platform has spawned nearly a thousand factory brands, and continues to promote the supply-side reform of multiple industrial clusters through the C2M model. In 2017, Pinduoduo supported a total of 180,000 merchants in 19 industrial belts in the Yangtze River Delta, helping a large number of factories to get rid of the foundry status and achieve branding at the lowest cost. In December 2018, Pinduoduo launched a “new brand plan” focusing on the growth of China’s small and medium-sized micro-manufacturing companies, aiming to support 1,000 brand factories covering various industries to help them reach consumers effectively and cultivate brands at the lowest cost. As of the end of 2019, there were more than 900 companies participating in the customized research and development of the “New Brand Project”, with 106 formal members, and a total of 2,200 customized products, involving nearly 20 categories of home appliances, home textiles, department stores, and digital products. The orders for chemical products exceeded 115 million. After landing on NASDAQ, Pinduoduo is committed to leading the platform to enter the brand to the international market, and make more contributions to nurturing Chinese brands and promoting Chinese brands to receive international recognition.
Keep on the value of “duty” and insist on doing the right thing
Pinduoduo’s achievements are derived from the company’s “duty” values, that is, “stick to their own duties.” For the platform, the biggest “duty” is always focused on creating value for consumers. Whether it is the past or the future, the foundation of Pinduoduo’s survival is to create value for consumers. The platform will always focus on the inherent value of “duty”, always insist on doing the right thing, and constantly make unremitting efforts to meet the needs of the most users. .
