Thanks to its impressive growth, Pinduoduo has attracted 731.3 million active buyers in the last 12 months, after just a few years of operation. All content is posted anonymously by employees working at Pinduoduo. That can certainly be a source of strength for PDD. It’s extremely simple, in truth, and works by way of two parts: a web crawler and a web scraper. However, Pinduoduo does have cash reserves it could apply in the future. There are leaderboards, animations, and all the usual accoutrements you’d expect these days. The Chilean Fruit Exporters Association and Pinduoduo have established a strategic agreement. Founded in September 2015 by Colin Huang and his company The Shanghai Dream Information Technology Co., they exceeded RMB$100 Billion GMV in 2 years and 3 months’ time, while JingDong and Taobao took 4 times and 2 times that respectively. See more. It has a 7.3% share of the Chinese ecommerce market, behind JD.com (17%) and Alibaba (56%). P Diddy will not like PDD taking up his air space at all. Yes, the revelation that bulk-buying means lower prices will probably not shake you to your core. How does Pinduoduo work? What makes Pinduoduo really stand out from all the other online shopping sites, is their rapid growth rate over this short period of time. Last week, we discussed the difference between ‘social media’ and ‘social networking’. JD.com’s share price closed at $30.72 on Thursday. This is the Pinduoduo company profile. Evidently, that’s a good thing, because there will be loads of them. Chinese competitors for remote work platforms include Alibaba’s DingTalk, Tencent’s Lark, and WeChat Work, which have all gained significant momentum as remote work accelerates in China. It looks like a jumble sale and, given that the new version of the app offers no English translations, I could make neither hide nor hair of the whole thing. Who even knows. It is also worth noting that Pinduoduo has become the largest online platform for agricultural products in China by enabling direct selling from farms to the dining table. At first, I genuinely thought it was a new name for Sean “P Diddy” Combs and left it at that. Grocery e-commerce surges in China as Covid-19 disrupts lifetime habits. You’ve got your straight-up rip-off merchants, shameless in their attempt to trick us all into downloading their app instead. Pinduoduo’s model is customer-to-manufacturer (C2M), cutting out all the intermediaries — except themselves, of course. Discounted prices are unlocked when users form ‘teams’ of at least two buyers. Pinduoduo got the attention of the under-served, price-sensitive consumers by presenting them with a proposition they could not turn down. Pinduoduo is particularly popular with women who make up 70% of the user base. Here, we share some of the latest consumer trends we see emerging in China and the world. The company has increased investments in research and development, marketing, and staffing, meaning it still operates at a loss. How does Pinduoduo contribute to the agriculture sector in China? Yes, I did download many of these before I got to the real thing. That’s where Pinduoduo is cleaning up – so long as it can make those tight margins work. And in the last month, the share price has gained 28%. Huge companies like Amazon and Google seem to operate from a position of immovable dominance, but Pinduoduo shows that new entrants can make an impact by innovating the incumbents’ business model. … Watch this video for a detailed product walk-through (or click here to watch on YouTube): This is a content initiative by GGV Capital that includes insight, stories and thought pieces on the people shaping the lives of the next billion Internet users. This trend has accelerated this year thanks to the coronavirus crisis and the resultant social distancing lifestyle. How does Duo Duo Farms help to alleviate poverty and create a sustainable future via the team purchase feature in Pinduoduo? ‘P Diddy won’t like this’, I thought. However It’s the Proper Factor to Do. No Result . - If you see something you’re interested in, you can join the team and help drive the price down. How to buy shares in Pinduoduo. Consumers are at the heart of everything we do at Pinduoduo. So far 1,612,413 shares have traded compared to average volume of 6,155,730 shares. Tag: Pinduoduo. Source: Investor Presentation. All rights reserved. Pinduoduo is China’s most valuable private e-commerce company that just filed for a US IPO, less than 3 years after it was founded. Then I saw that PDD was indeed that Chinese ecommerce site — the country’s third-biggest, no less — and I had another thought. In fact, was that just another copy? Online grocery shopping has taken off in China in the wake of the Covid-19 lockdown, making it one of the fastest-growing segments for e-commerce. Given the clear appetite among Chinese consumers for this approach to shopping, there is room for more than one such app. PDD’s real innovation lies in its business model, and that is the element that its bigger rivals can mimic. People will still need to buy things; they just might think twice before paying an unnecessary premium. Many of the same consumer demands are in place for a PDD-style app to take off, however. Farmers feel relieved from the heartbreak of seeing their hard work go to waste as the fruits rot, as they ship fruits off in bulk to Pinduoduo shoppers, who typically get their produce at 60 to 80% off. Volume today is low. This is how it works: Users share Pinduoduo’s offering on Tencent’s social network platform. Coverage of live commerce in China tends to focus on the most influential and prolific livestreaming celebrities, such as Li Jiaqi, also known as the ‘Lipstick King’, or Viya, who in the lead-up to Singles Day 2019 partnered with Kim Kardashian on a joint … Meanwhile, the market has paid attention, sending the share price soaring 148% in response. Pinduoduo benefits from the secular shift of consumers from brick-and-mortar shopping to online shopping. They are considered to be responsible for family purchases and more price-sensitive. Here are some choice quotes from the PDD website: “We constantly provide merchants with consumer insights and preferences to help them tailor make products for their targeted customers.”, “By channeling analytics around consumer behavior and preferences, we hope to enable 1,000 brands to produce and sell products on our platform that are tailored to our users’ needs.”, “We facilitate direct sales between small-scale farmers and consumers by leveraging our insights on consumer preferences and aggregating demand to generate large order volumes for our farmer merchants.”. Pinduoduo is a rising e-commerce platform in China. Pinduoduo has been the prime beneficiary of the recent recovery in Chinese tech stocks. November 27, 2020. Pinduoduo offers products such as clothing, fresh produce, household items and electronics. Pinduoduo Inc is an internet retail business based in the US. earnings-and-revenue-growth. The Taobao Special Offer Edition app has been a roaring success since its launch last month. These issues aren’t trivial, and it may only be a matter of time before investors start asking smarter questions. Second, Groupon can easily become viral, and its daily discounts spread quickly through email. How does Pinduoduo's grocery shopping service Duo Duo Maicai work? More than just a digital shopping platform, it is actually a social e-commerce app, which uses a “team purchase” model and uses social sharing on Chinese social networks, in particular WeChat. Lark and DingTalk were both endorsed by Unesco for remote learning — Pinduoduo’s Knock was excluded … Just like other well-known Chinese e-commerce platforms, it is not surprising to hear that the founder of Pinduoduo is one of the richest people in the world. November 12, 2020. On the right, a lemon I purchased from my local supermarket. I would like to receive news and updates from GGV. The aesthetic of the PDD app is pretty similar to Wish. Many aspects … Pinduoduo was founded in 2015 by an ex-Google engineer, Colin Huang. Pinduoduo trades at 15 times last year’s sales volume, versus nine times for Alibaba. A large part of PDD’s appeal is the group buying function. On March 16, Pinduoduo (PDD:NASDAQ) released (in Chinese) an upgraded version of its internal communication platform 'Knock' to the public. How Pinduoduo works? What does Pinduoduo do? Pinduoduo sell products at much wider discount provided certain volume is reached. China is known to be the factory of the world… November 12, 2020. Pinduoduo organized the competition jointly with the China Agricultural University, under the technical guidance of the Food and Agriculture Organization. Consumer Trends How does Pinduoduo's grocery shopping service Duo Duo Maicai work? In this article we are going to estimate the intrinsic value of Pinduoduo Inc. (NASDAQ:PDD) by estimating the company's future cash flows and discounting them to their present value. The company’s average monthly active users increased 88% to 366 million across the same period. Pinduoduo shares (PDD) are listed on the NASDAQ and all prices are listed in US Dollars. Company part-owned by Chairman of SCL Group sought €200 million investment from Russians in 2015, How the Secondhand Clothing Industry Is Getting a Major Makeover (and Tapping $220 Billion of…, Luxury Fashion Begins to Move Manufacturing to Southeast Europe, Everything There Is To Know About Pricing Strategies For Your Mobile App, Months After Approval, Breakthrough Cancer Drug Given to Just Five Patients. Work; Technology; Industries. So I looked Diddy up and it turns out he was sued in 2011 (unsuccessfully, and you’ll soon see why) for $1 trillion in damages for, among other things, “causing 9/11”. Where Amazon uses the data on its platform to create its own, high-margin products, PDD instead takes user data and packages it up for manufacturers. Most would be very happy with that, especially in just one year! The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. View All Result . This is one reason investors view PDD as a relatively safe bet right now. Best Fintech Companies to Work for 2020; No Result . The web crawler is the horse, and the scraper is the chariot. Excerpts from this interview with Nicole Jao were featured in her TechinAsia deep dive on Explaining Pinduoduo, and whether the model can work in Southeast Asia Pinduoduo has emerged as a strong (if not leading) contender in China's e-commerce scene. Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Manufacturers can have more control over their profit margins by reducing the intermediaries between them and the end customers. Founded in 2015, Pinduoduo is a relative newcomer to China’s hyper … The discounts are normally very significant. This offers users the option to purchase a curated selection of items at lower prices and pick … The Pinduoduo model has been described as consumer-to-manufacturer, or C2M. The scale of “free traffic” Pinduoduo supplies to merchants. Consider the challenge for this author, a beginner-level Chinese speaker (as in, literally started and then quickly gave up, today), trying to figure out which of these is real: These imitators can mimic the look of PDD, but they don’t have the manufacturers on board or an ecommerce engine. Pinduoduo is an e-commerce company that does things differently, but its formula is clearly working. PDD’s group-buying groups. Health Check: How Prudently Does … On Thursday, Nasdaq-listed Pinduoduo saw its share price rise more than 12%, reaching a record high of $39.96. - If your item listing gains an audience, it will appear in more users’ home feeds on WeChat. Many consumers already buy in bulk, some at large outlets and others on a smaller scale through ecommerce sites like Amazon. We end up with products that retain a vague essence of what their ancestors once were, at best. I’d say the company needs to appoint a CFO to answer those questions satisfactorily. They should also be able to match their supply with demand more accurately, cutting down on waste. Chinese Pinyin example sentence with 多 ( duo / duō ) ⓘ Writing in Pinyin Before using this Pinyin example sentence, consider that Chinese characters should always be your first choice in written communication. However, Pinduoduo does have cash reserves it could apply in the future. - The ‘viral’ potential of social media is therefore essential to the success of this model. This appreciation for the work that goes into the making of a product often translates into higher sales. The company reported a 12-month gross merchandise volume (GMV) of 1.5 trillion yuan, a metric that indicates sales growth. Their size and scale means little if customers prefer the social approach to shopping. November 12, 2020. Where Groupon took a hands-off, anonymous approach to social commerce, PDD incentivizes shoppers to get involved and drive prices down themselves. (See reference by Parmesh Shah from World Bank) Why is Pinduoduo well-suited to help farmers and digitize agriculture? According to the official announcement, Knock helps companies to communicate … With that important distinction clarified, let’s get down to it. As such, they want users to engage with the app to have fun, even if it does not immediately translate into a purchase. Pinduoduo is the fastest growing e-commerce startup in the history of China. PDD is NASDAQ-listed since 2018, when it was one of the biggest IPOs of the year. Glassdoor gives you an inside look at what it's like to work at Pinduoduo, including salaries, reviews, office photos, and more. Pinduoduo wants users to engage with the platform as often as possible, and they want the experience to mimic real-world shopping. We have found that consumers like to know the stories and people behind the product. Explaining Pinduoduo, and whether the model can work in Southeast Asia The growing popularity of social ecommerce in China has created a wave of disruption that changed ecommerce for good. 00:20 What Pinduoduo’s name means 01:10 PDD at a glance - Innovative and fast-growing e-commerce platform 02:50 What does joining PDD offer you as a foreign merchant? People are increasingly conscious of where their products come from, price is a big decision factor, and we are using technology to communicate in groups. Groupon works because it provides tempting choices for its motivated group of consumers. Pinduoduo is a group-buying e-commerce platform that was founded in 2015 by Colin Huang an ex-Googler. Subscribe to Yahoo Finance's free daily newsletter today. Launched in the Philippines, social commerce startup Resellee wants to recreate the success of Pinduoduo, one of China’s fastest-growing e-commerce companies, in Southeast Asia. November 12, 2020. Average monthly users jumped by 50% to 643.4 million, reflecting increase in inactivity. This appreciation for the work that goes into the making of a product often translates into higher sales. Pinduoduo’s model is customer-to-manufacturer (C2M), cutting out all the intermediaries — except themselves, of course. November 12, 2020. You may even recall the Groupon era, when we all went cuckoo for group buying hang-gliding lessons and all sorts of other discounted nonsense. See more. Notably, Tencent (WeChat’s parent company) holds an 18.5% stake in PDD. The fact that WeChat parent company Tencent owns a sizeable stake in Pinduoduo helps these two apps to play nicely together. Social networking is about immediacy and interpersonal connection, using technology. What has made its trajectory interesting for many has … Particular person traders who personal … Grocery e-commerce surges in … The stock has traded between $93.01 and $98.05 so far today. Top story ... How does Pinduoduo's grocery shopping service Duo Duo Maicai work? Pinduoduo is China’s most valuable private e-commerce company that just filed for a US IPO, less than 3 years after it was founded. They are also keen to stress that shopping should be fun. The bigger challenge in Western markets is that a variety of rivals is vying for the same position, albeit arriving from different directions. Groupon subscribers like to forward daily deals to their friends, and in a world of social media and online personal suggestions, an email suggestion carries influence. Succinctly put, Pinduoduo boasts net cash, so it's fair to say it does not have a heavy debt load! We know that Facebook looks to WeChat to see which way the wind is blowing these days and it will have taken notice of PDD’s recent successes. This was up 73 per cent from last year. It dawned upon Huang that despite the dominant market positions of Alibaba and JD.com in China’s internet space, it is still possible to compete with them head-on if he could address the needs of the … How does it work? The Average Order Value on PDD is significantly lower than on JD.com and Alibaba, which is one reason for PDD’s large investment in an electronics retailer this week. One poet captured it all: “As I silently look back, all the sorrows and joy, all the twists and turns, of life, vanished like sands in the desert. See more. Given that we are looking at Pinduoduo as potential shareholders, the cost of equity is used as the discount rate, rather than … PDD depends on WeChat, that ‘everything app’ that dominates online life in China, for the majority of its traffic. That boosted its market cap to $46 billion, surpassing JD.com’s $45 billion. This has led them to be ranked as the second most popular e-commerce platform after Taobao. In this deck, we explain how Pinduoduo works and what led to its rapid growth. Effectively the app just organizes consumers into buying teams who then purchase goods such as bulk buy soap, corn plasters and cleaning products straight from the manufacturer. Below left, a real lemon I purchased from the market. So while it's hard to imagine that the CN¥325.0b company is struggling for cash, we still think it's worth monitoring its balance sheet. The crawler leads the scraper, as if by the hand, through the internet, where it extracts the data requested. This could be related to the recent financial results that were recently released - you could check the most recent data by reading our company report. Groupon deals on an interactive map that shows the deals displayed in your city for an easier-to-see selection. When looking at a product, users are presented with two price options, a standard price to buy directly and a discounted price. No joke. Pinduoduo now hosts in-app games to help drive up daily time spent on the platform. Either way, we can state with some confidence that PDD is well-positioned to cater for what will likely be a price-sensitive, post-virus age. That's a head and shoulders above most loss-making companies. Understanding these rules of nature does not make us feel superior, nor does it give us the power to rule and order. Does Pinduoduo work directly with manufacturers? They use affiliate links to point towards Taobao, normally. November 12, 2020. by Mia Turner. How does Pinduoduo relate to the Passion Economy and the idea of monetizing individuality? Huang wanted to merge the strengths of Alibaba and Tencent in ecommerce and social media, respectively. December 1, 2020. Watch … Pinduoduo is … For cities where the service is available, Duo Duo Maicai is featured on the main Pinduoduo app. See more. How does Pinduoduo relate to the Passion Economy and the idea of monetizing individuality? Instagram’s new commerce features focus on removing friction in this journey, liberating us from our cash with increasing ease. How does Pinduoduo's grocery shopping service Duo Duo Maicai work? What are the benefits for the farmers in China? How does Pinduoduo work? Well, we typically think of ‘social commerce’ through the perspective of social media at the moment. Web scraping (also called web data extraction or data scraping) provides a solution for those who want to get access to structured web data in an automated fashion. It went public on July 26, 2018 and took only three years to become the seventh largest Chinese Internet company next to Baidu, Alibaba, Tencent (BAT), Xiaomi, JD and Netease. Just one step from turning himself into a symbol, I assumed. I guess he has bigger concerns than minor name infringement by a borderline homophone. Pinduoduo dedicates itself to creating a commingled "space" between cyberspace and physical space, where users can find the most value-for-money merchandise that meet their different needs and derive happiness; ... We are encouraged and have every reason to believe that as we work hard day … SHANGHAI, China, Dec. 07, 2020 (GLOBE NEWSWIRE) -- Pinduoduo, China’s largest agriculture-focused technology platform, will explore deploying smart agriculture solutions developed by the winners of a competition organized by the Food and Agriculture Organization (FAO) to working farms, giving young agripreneurs an … Duo Duo Maicai is a natural extension of Pinduoduo's mobile commerce platform and an integral part of its ecosystem. For example, ‘How can our brand get customers to buy stuff off us on Facebook?’, and so on. The app’s users can secure group discounts on products by buying together in bulk, straight from manufacturers. See more. Buyers can secure reductions of up to 90% versus standard retail price on everything from tissues to TVs. 0 . Five years later, Pinduoduo is defying expectations, skyrocketing from a startup to a company worth US$$93.4 billion. But Pinduoduo’s unfashionable reputation hasn’t stopped it from becoming more valuable than its slicker-looking competitor JD.com. See more. The app works slightly differently from other platforms, allowing users to participate in group purchase offers. Copyright © 2020 GGV Capital. Glassdoor gives you an inside look at what it's like to work at Pinduoduo, including salaries, reviews, office photos, and more. Declining cash and equivalents, which plunged 75% year on year to RMB 5.53 billion ($780.5 million) in Q1 2020 from RMB 22.50 billion ($3.35 billion) in Q1 2019. What has been the secret to this incredible growth? This is how it works: Users share Pinduoduo’s offering on Tencent’s social network platform. It is up over 50% in the last month, versus respective rises of 19% and 17% for Alibaba and JD.com. And what does Pinduoduo’s livestreaming launch mean? The e-commerce platform, which has almost 700 million active buyers, has made it a strategic priority to digitize agriculture so that the efficiency gains … Listen to the Evolving for the Next Billion podcast here. Pinduoduo grew its revenue by 130% last year. There has been an assumption in the past decade that Chinese consumers are willing to pay a premium to secure high-quality products, particularly in major cities. This page on their website is very revealing. In essence, Pinduoduo uses the network effects of social media to give this age-old practice a 2020 makeover. Only be a matter of time before investors start asking smarter questions interview... The share price closed at $ 30.72 on Thursday, NASDAQ-listed Pinduoduo saw its share price closed $. Tencent owns a sizeable stake in Pinduoduo helps these two apps to play nicely together, albeit from! Pros on Wall Street a hands-off, anonymous approach to social commerce, PDD incentivizes shoppers get. 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