It replaced JD.com to move up the ladder
Pinduoduo, the e-commerce start-up is already making huge strides in the market. The major competitor of Alibaba has replaced JD.com as the fourth most valuable internet company in China. The market value of the company stands at a whopping 47.6 billion US dollars. The company is only trailing the e-commerce behemoth Alibaba, Tencent the social network titan and Meituan the food delivery giant.
Baidu, the Google of China has been seeing the declining trend and the current scenario has ended the decade long dominance of Baidu, Alibaba and Tencent on the Chinese internet. The prominent rise of Pinduoduo is due to the ability of the company to reach deep into the segment of the market with its social commerce platform. The company is known for selling household products at a much cheaper rate. This pricing strategy is quite popular among the population of small towns and rural areas. These segments are overlooked by Alibaba and JD.com.
After conquering rural areas company is now moving to the urban market
The company is now targeting the urban market by offering premium products such as iPhones at a lower price than its competitors. The effortless combination of its services with WeChat, the top messaging app of China, which is owned by Tencent, who happened to be one of the major investors of Pinduoduo. This combination has allowed the less tech-savvy consumers to use WeChat to access Pinduduo. The company provides them the offers and discounts for bulk buying. This really justifies the name of the company which means “shop more together”.
At the start of the month, The Chief Executive and the Founder of the company Colin Huang said, “Pinduoduo has surpassed JD.com in gross merchandise volume, or the total dollar value of goods sold.” The competition between Pinduoduo and JD.com is subtle as both companies are supported by Tencent. Huang was pretty happy about the development and seemed quite confident about the present state of the company.
