Pinduoduo (NASDAQ: PDD) annual active buyers grew by 40% and exceeded 585 million in 2019 with an average spending of US$247.1, up 53%. It surpassed RMB1 trillion in GMV for the first time in Q4 2019.
Pinduoduo, founded in September 2015, runs one of the top mobile shopping app. By launching a group purchase with friends, family, neighbors, etc., the user buys the product at a lower price.
Pinduoduo business model replies on social e-commerce and is designed to unite more people, buy better things at lower prices, and experience more benefits and fun.
Within three years of its founding, Pinduoduo has attracted over 300 million active buyers and over 1 million merchants through a new shopping format and experience.
China’s social e-commerce platform Pinduoduo updated its IPO prospectus previously filed with US Securities and Exchange Commission (SEC) on July 17, 2018. Read details on Pinduoduo IPO here.
How Pinduoduo works
Pinduoduo works on a social e-commerce model. By launching a group purchase with friends and family (often shared in social media like QQ and WeChat Moments)., the user buys the product at a lower price.
Pinduoduo leverages a platform and an ecosystem comprised of hundreds of millions of users, merchants, platform management personnel/operators and platform infrastructure/service providers; while each player is interdependent with one another, all of them evolve and improve as they constantly try to balance cost-effectiveness, efficiency, user experience and satisfaction.
In the past three years, Pinduoduo has established and promoted a new e-commerce concept and experience of “team purchase” (or “pin”).
Huang Zheng is the founder and CEO of Pinduoduo, who graduated from Zhejiang University and got a master’s degree in computer science from the University of Wisconsin. He was also an ex-Google engineer and an ambitious entrepreneur.
Download Dossier: Pinduoduo statistics.
During the Chinese New Year holiday, Pinduoduo quietly launched a short video function called “Duoduo Video” in its app.
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Pinduoduo’s 12-month GMV ended September 30, 2019 was RMB840.2 billion (US$2,117.5 billion), an increase of 144% YoY. Its total revenues in Q3 2019 were RMB7,513.9 million (US$1,051.2 million), an increase of 123% YoY.
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Social e-commerce is a segment that involves utilizing communication channels such as social networking websites, SNS, WeChat, Weibo, social media as well as the social interaction, user-generated content and other measures to facilitate the purchase and sales of products. Social networking elements as “like”, sharing, connection, discussion, interaction, and others are applied to the process […]
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