So I don't see the harm in some competition even if it's probably just more of the same - another bazaar selling OEM junk. Join a popular e-commerce platform is not enough to gain visibility, even if this is Pingduoduo. Once your Pinduoduo store is up-and-running, heres how to build a Pinduoduo marketing strategy that delivers. Registering for Pinduoduo as a cross-border merchant is a relatively simple process and can be completed within a week. Especially with multiple studies showing reducing work weeks to 4 days from 5 doesn't cut productivity at most engineering companies anyway, let al. REAL GOAL and THREAT: they will be a fair employer adhering to American labour law better than Amazon. Otherwise, the lottery is canceled, and the registration fee together with a coupon is returned to all. Of those users, 65% are from lower-tier cities in China (an important marketing category), 70% are female, 63% are between 25-40 years old, and 42% dont have a college degree. Its sufficient to pay a registration fee of 0.01 RMB to participate. The controversy grew when days later, a Pinduoduo employee who called himself Wang Taixu said he had been fired by the company after posting a photo of a colleague being taken into an ambulance after collapsing. We've received your submission. Thats because Temu has launched a campaign on social media in which the more you convince others to sign up, the more credit you earn. All it would take would be for a savvy, US-native marketer to wave a couple fingers, and everyone in America would understand that this new website is nothing but a place to buy cheap Chinese crap from enslaved people working for scammers. It's how the Chinese are able to manufacture shit for pennies in Guangong, advertise it online in the U.S. and ship it to your house in 10-14 days _at no cost._. In fact, PDD has created a unique way to engage Chinese customers: transforming the online purchasing process into a sort of game, where they can get products at low prices in exchange for Brand awareness. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 600+ segments in 150+ countries, Insights on consumer attitudes and behavior worldwide, Business information on 70m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. 2. and more likely than not you'll get a tidal wave of shit thrown back at you. Each buyer is then able to purchase the product for often up to 90% less than the usual retail price. For an etail outfit, that warehouse is going to be fully automated by systems developed and maintained from China, by Chinese engineers. It has become Chinas third-largest ecommerce company after Alibaba and JD.com, relying on low-cost domestic manufacturers to keep prices down. In some cases, there were as few as eight bathroom stalls for a floor with over 1,000 workers, forcing workers to stand in long lines or sneak into neighboring buildings, according to Tan. In 2019, Sany Group sold more than 10,000 heavy trucks, the fastest-growing heavy truck brand has ever reached! Sign in with a password below, or sign in using your email. The companys model has similarities to Shein, the controversial Chinese ultra-fast-fashion brand that uses tight manufacturing networks to churn out trendy clothes to young western buyers. It provides an interactive shopping experience that keeps the buyers engaged. First it will need to build brand reputation versus the likes of Amazon. how PDD has become the current fastest-growing e-commerce platform; why it is convenient for unknown cross-border companies to work with PDD and how they can join it; how Sany Group is taking advantage of its collaboration with PDD. The third party takes a small markup and sells these items with Prime shipping. Both actors have the same mission: provide the greatest value-for-money. Heres how: On iPhone, Long-press an app, then tap Remove App > Delete App. WebWe launched our e-waybill system to make shipping information more transparent and updated to our users, and to realize greater logistics quality and efficiency for our third-party logistics providers. We are happy to help. Revenues from merchandise sales were RMB5,357.8 million (US$821.1 million), an increase of RMB5,357.8 million from nil in the same quarter of 2019. Look how easy it's been to convince Americans that Amazon isn't that. If you are downloading this on behalf of a client, please provide the company name and website information below: A New Era of Commerce: How Retailers of all Sizes can Win in 2023 and Beyond, Mens Wearhouse Streamlines Wedding Planning for the Groom with Digital Tool, 45% of Shoppers are Highly Loyal to a Particular Home Improvement Retailer, Optimizing the Path to Global Expansion: Tools and Tech to Drive Success, Connecting Corporate to the Front Lines with a Retail Digital HQ. It leverages technology to promote and enable the traditional agriculture industry. Problems of Pinduoduo. The innovation of the Pinduoduo platform consists of continued investment in the key drivers of its consumers purchasing decisions, which are convenience and gamification. Its signature feature is group buying, which allows users to organize people to make mass purchases directly from manufacturers at a steep discount. As a graduate student, I did that for years, often spending those couple of hours in the evening working on my thesis. Today, Pinduoduo is one of the world's top 10 retailers. Pinduoduo did not immediately respond to a request from the Guardian to comment for this story. (More on Pinduoduo and its shady app below. Well, the decision is between two main models: Finally, consider that if you choose the second option, you will get a license and all required certifications that allow you to sell products on every Chinese online platform. By signing up, you agree to our privacy policy. Now if only Amazon would include a search box which would filter out stuff not sold and shipped by them so I can avoid scam shit, it's a royal pain looking for something only to find a dozen or more "sellers" with craz. It's as if (enforced) labour laws would easily prevent competition from such foreign companies. Revenue jumped to RMB 7.29 billion (roughly US$1.02 billion), an increase of 169% YoY. So to expand: anyone that is participating should invite someone else. Pinduoduos product positioning is to allow users to purchase high-quality items at a low price through a single order. The unicorn Pinduoduo (PDD) is the biggest e-commerce company in China after Alibaba and also the fastest-growing e-commerce group at present. Founded in 2015, Pinduoduo has focused on lower-income customers and the agricultural sector. Your email address will not be published. Pinduoduo, however, has achieved higher growth in five years than JD.com did in over a decade. But it's also starting to develop a reputation for WebAnnual fee: $1,000 Commission: 2-8% based on order value. JD.com is working with Shopify to help retailers access Chinas market via its JD Worldwide cross-border ecommerce platform as well as its Joybuy.com site. Get in touch with us. POLAND - 2021/01/05: In this photo illustration, a Pinduoduo logo seen displayed on a smartphone Last Nights Exchange Rates, Prices, & Yields. Yes, wouldn't it be terrible if rich Chinese industrialists put Americans to work under conditions almost as bad as American industrialists formerly put Chinese immigrants to work under? Since late 2020 the government has pursued a crackdown on tech companies and their owners, and the prospects for growth at home have dwindled. There are lots of really good reasons not to use Amazon. Deposit is mainly used to pay back unsatisfied clients. Temu itself acknowledges that its orders take longer to arrive than those from Amazontypically 7-15 business daysas they come from overseas warehouses. But it appears that Temu also has had trouble delivering inside that larger time window. Pinduoduoscurrent annual active customers as of Q2 2019 reached 483 million, surpassing that of JD.com. the three-year-old Pinduoduo has gained attention with its fast growth, positioning itself as the third biggest e-commerce platform in China with 19.4% of the market share. Worse, instead of lobbying the government, the government orders them to obey and they do. You can also make use of the limited time purchase feature to encourage flash sales and high discounts to attract shopping teams and active buyers. Google said in a statement Tuesday that it suspended the Pinduoduo app on the Google Play app store out of security concerns and that it was Search for torches, art pens, pasta makers, earbuds etc. In this way, you are more visible on Chinese search engines, and when a potential customer lands on your website, you have a better chance of making him stay there. Find a bunch of Chinese products and let people buy them through a click of a web browser. Pro tip: If you downloaded Pinduoduo you really need to do a full factory reset on your smartphone to wipe out any remaining code or tracking. Also, buying ads on WeChat give you a low ROI unless your brand is very popular. Hondas aging hydrogen fuel cells get new life in data center. To do that, youll need to provide the following documentation: Youll also need to pay a refundable deposit between $1,500 $7,600, depending on your industry. Colin Huang, founder of Pinduoduo, in 2017. controversial Chinese ultra-fast-fashion brand. You should hear back quickly and be asked to sign a contract. Items on Pinduoduo will have two prices: "Buy alone", and "Group Order". Every Wednesday and Friday, TechNodes Briefing newsletter delivers a roundup of the most important news in China tech, straight to your inbox. Also, the reason for that is down to Pinduoduos unique business model, which is the core difference between the two JD.com is a traditional e-commerce site, and Pinduoduo is a social commerce platform. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. First, youre buying goods directly from manufacturers in China and other parts of the world. Find your information in our database containing over 20,000 reports, one of the worst performers in the S&P 500, e-commerce purchases in China were made via mobile devices. If you have a cosmetics brand, for example, the right option could be an account on Xiaohongshu, and thanks to a collaboration with KOCs, as well as the creation of avatars that write shopping notes, you can perfectly manage your online reputation. (Pinduoduo wrote in its SEC filings that it immediately removes unauthorized products or misleading information on its platform, and freezes the accounts of sellers on the site who violate its policies.). Because Pinduoduo is heavily integrated with WeChat, Chinas top social media platform, its a snap for users to gather up friends, family and internet strangers to order big batches of everything from electronics to baby formula to groceries something that became a lifeline during Chinas strict Covid lockdowns. Not only because they are used to searching for information on it, but also because forums content is often visible on search engines first results. Additionally, in 2021, the deaths of two Pinduoduo employees spurred investigations and boycotts over the companys working conditions, according to the New York Times. I have no love for the big box stores, but when's the last time you heard of a Walmart employee jumping off a tall building? Dont hesitate to produce more content related to Pinduoduo! The company now has a market cap of $102 billion, and its stock price increased during a year in which competitors like Alibaba took severe hits. Pinduoduo is still not a profitable business and is unlikely to become one in the near future. Temu is branding the campaign as a way for communities to band together to save money: their slogan is Team Up, Price Down.. In a fixed period, customer Pinduoduo is not the parent company of Temu; both are subsidiaries of Pinduoduo Inc. Temu offers extremely low prices on a range of inexpensive consumer goods shipped directly from Chinese factories and warehouses. Pinduoduo takes no commission at all on your product sales. Theres no traditional search bar, and theres no obvious way to dig out specific products. Its sufficient to pay a registration fee of 0.01 RMB to participate. Force all the manufacturers in China dumping product on Ali Express, Amazon, and any future endeavor to pay fair & competitive shipping fees to get their products into the United States. So, if you are a yet-to-be-famous company that wants to enter China, our advice is to consider joining PDD. For international businesses looking to sell in China, heres a quick summary of Pinduoduo vs. JD.com: Check out our guide on selling on JD Worldwide to learn more about Pinduoduos closest competitor. Don't get me wrong. Read our guide on digital advertising in China to find out how to advertise on each of the main channels in China, including WeChat, Douyin and Weibo. You should also advertise on Pinduoduo itself, which offers a wide range of high-converting banner ads that you can target at specific users based on your needs. The Fine Print: The following comments are owned by whoever posted them. WebAnnual fee: $1,000 Commission: 2-8% based on order value. Temu isnt unique in all the info it wants to capture from your phone, of course. Heres a breakdown of whats involved: Visit this page to sign-up as a cross-border merchant. Pinduoduo has targeted a If you work that kind of hours (two hours free time max) just for a wage, you might as well be dead. If more and more American consumers flock to Temu to buy cut-rate goods, that could pressure Amazon and other competitors to slash their prices too, which would affect wages, Schmidt argues. Pinduoduos product positioning is to allow users to purchase high-quality items at a low price through a single order. Other Chinese e-commerce giants, such as Alibaba, Meituan and JD.com have found success marketing to south-east Asia and Latin America, but Pinduoduo may be inspired by the success of Chinese companies such as Shein and Bytedance the parent company of TikTok in the US. In this article, well answer those questions and more as we break down the ins and outs of Pinduoduo marketing.