Pinduoduo - statistics & facts

China's profitable digital economy has given rise to a number of e-commerce unicorns. In recent years, the country's cyberscape has been remodeled by the rapid growth of social commerce and live streaming commerce, further increasing competition in the online market. The four big-techs, known as BATX (Baidu, Alibaba, Tencent, and Xiaomi), no longer hold their unassailable competitive positions. In 2018, a total of 13 e-commerce companies went public, of which Pinduoduo was one of them.

A miraculous rise and ungraceful fall

Founded in 2015, Pinduoduo took two years and ten months to hit Nasdaq, becoming one of the fastest IPOs among Chinese internet firms. Today, Pinduoduo is one of the world's top 10 retailers. It is also one of China's biggest online retailers in terms of the number of active users and market share. The success of Pinduoduo lies in its unique business model, a combination of group buying and social shopping. The platform encourages its users to join team buying to secure a better price and share links for various items with their friends in exchange for coupons. This scheme effectively lowers Pinduoduo's customer acquisition cost.

Another key element to Pinduoduo's immense growth was its strategy to target the rural market. While most Tmall users were from bigger cities, Pinduoduo managed to win a large market share in lower-tier cities and villages by offering steep discounts. Home to more than 700 million people, China's lower-tier market has overtaken Tier-1 and tier-2 cities to be the new driver of the country's economy.

Regardless of its mushrooming revenues, Pinduoduo was bogged down by its false advertising scandal and China's recently tightening e-commerce regulations. In May and December 2021, local market regulating authorities from Shanghai and Zhengjiang requested talks with Pinduoduo regarding selling counterfeit products. Besides, Pinduoduo was accused of deceiving its customers with false discount campaigns. With a 67 percent loss, Pinduoduo became one of the worst performers in the S&P 500 in 2021.

Shopping at your fingertips

Unlike its major competitors, Pinduoduo removed the function of shopping on its website. Instead, users could only browse and purchase the items via its mobile app or a WeChat mini-program. Since more than 85 percent of e-commerce purchases in China were made via mobile devices, the decision seems reasonable. Furthermore, shopping via mini-programs became increasingly popular among Chinese online shoppers. Mini-programs refer to built-in applications within the WeChat ecosystem. It allows users to use certain apps without downloading or installing them. As of September 2020, Pinduoduo remained the most popular WeChat mini-program, with more than 155 million monthly active users. Following the success of the Pinduoduo mini-program, the company launched its q-commerce mini-program Duoduo Grocery in 2020. After a year of operation, Duoduo Grocery ranked second among all fresh commerce service providers in China in terms of the number of MAUs and GMV.

Interesting statistics

In the following 4 chapters, you will quickly find the 21 most important statistics relating to "Pinduoduo".

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