Marketing News

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Fastest Growing E-commerce Company in China: Pingduoduo

Recently, a company named Pinduoduo (PDD), which public a social E-commerce app, are very popular in China. Because I like shopping, I noticed DPP's app and have some shopping experience in this company. 

 There is more and more e-commerce app/company with the prevalence of online shopping in China, such as Taobao, Tmall, JD.com, Weipinhui. Pingduoduo was launch in 2015, it just takes about a year to grow their platform users from 15 million to 195 million. Why they are developing that fast? According to research, the primary customer of PDD is the less educated female that lives in small cities or 3rd cities. Also, most of these consumers are above 40 years old. 
The most crucial incentives PDD attracting those people (the group of mid-age female always looking for bargain-basement prices) to purchase on their app is the group-buying discounts as deep as 90%. By sharing more of the link or promoting more of the product to friends or families, customers will get more discounts. Besides, the user's behavior is very interesting in PDD compared with other e-commerce apps. PDD's user will search for the product with the biggest discount that offered today instead of searching the keywords with what they want to buy.

Pdd's selling strategy is very smart, as the viral marketing can keep users to stay and purchase more. Also, they know the psychological activity of customers. Compared with an expensive product with a good discount and a cheap product without discount, users will always be willing to get the former one. 

But why will the product on PDD be selled as that cheap? PDD's connect the manufacturers and farmers directly to the customer who mainly lives in the lower-tiered cities. This marketing way reduces a lot of expenditure due to skipping the middleman. 

What I learned from PDD about the marketing strategies is that find a creative and less-competitive way in today's society is very important. When most e-commerce competes for customers in the big city, Pinduoduo focuses on local farmers and factories to build an initial connect with low-income customers. This is a good way to be successful in a business, too. 

 However, things cannot just have a good aspect. Recently, there are many users reflect that PDD's product is poor of quality. If I were the manager of PDD, I will try to solve the quality problems that customers already have right now. For instance, ask users to give a specific feedback about why the product is not good. After evaluation, give some vouchers to customers to comfort their moods.  Then, it is time to put more attention to improve the product, as PDD already very popular. What they need now will be developing their reputation so that the company can sustain further.









https://walkthechat.com/pinduoduo-close-look-fastest-growing-app-china/

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