{"id":8629,"date":"2021-09-30T07:00:00","date_gmt":"2021-09-30T07:00:00","guid":{"rendered":"https:\/\/focus.cbbc.org\/?p=8629"},"modified":"2025-04-23T09:50:17","modified_gmt":"2025-04-23T09:50:17","slug":"why-you-should-care-about-farming-focused-tech-platform-pinduoduo","status":"publish","type":"post","link":"https:\/\/focus.cbbc.org\/why-you-should-care-about-farming-focused-tech-platform-pinduoduo\/","title":{"rendered":"Why you should care about farming-focused tech platform Pinduoduo"},"content":{"rendered":"

What is Pinduoduo \u2013 the fastest growing social commerce giant in China \u2013 and why brands should get on the bandwagon, according to Sara Danese from <\/span>Azya<\/a><\/span>, a digital specialist for wine and spirits brands entering China<\/span><\/h2>\n

Pinduoduo \u2013 now China\u2019s third-largest e-commerce platform with a 10.5% market share \u2013 is the fastest-growing Chinese social commerce platform with roots in lower-tier cities in China.<\/span><\/p>\n

Starting out fulfilling the needs of cities under-served by e-commerce platforms by sourcing high-quality groceries from nearby farmers, Pinduoduo has succeeded where Alibaba and other competitors have failed: showing a deeper understanding of the needs of those who don\u2019t belong to the educated and cosmopolitan elites. <\/span>In the words of its founder, Colin Huang Zheng: \u201cThe new consumer economy isn\u2019t about giving Shanghainese the life of Parisians. It\u2019s about providing paper towels and good fruit to the people in Anhui province.\u201d<\/span><\/p>\n

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Other major e-commerce platforms<\/a> have had problems penetrating China\u2019s smaller cities, with Taobao\u2019s penetration rate as low as 1% in some of China\u2019s smaller cities. This is a key issue given that third-tier cities and below comprise over 50% of the Chinese population and are estimated to make up 66% of China\u2019s consumption growth between 2020 and 2030.<\/span><\/p>\n

Perhaps believed to be of little value because of their limited spending power and their high sensitivity to price and special deals, they have less to spend but collectively have high spending power and are increasingly active in the mobile domain.<\/span><\/p>\n

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Since its NASDAQ listing in July 2018, Pinduoduo has shown growth ambitions beyond third and fourth-tier cities. In fact, the days of selling paper towels and good fruit to people in the more remote provinces of China are long behind it, backed by a well-established logistics system as well as a higher engagement rate thanks to the app\u2019s social and gaming features.<\/span><\/p>\n