E-commerce firm Pinduoduo is closing in on market leader Alibaba, show recent post-corona figures, says marketing expert Arnold Ma in Kr-Asia. Ma believes that the key to Pinduoduo’s growth is its continuing focus on its D2C (direct to consumer) model across manufacturing, agriculture, independent sellers, and new brands.
The number of Pinduoduo’s active annual buyers in the year ended September 30 reached 731.3 million, an increase of 36% YoY, and closing the gap with rival Alibaba, which boasted 757 million annual active consumers in the same period.
General merchandise volume (GMV) in the twelve-month period ended September 30 2020 reached nearly RMB 1.5 trillion, up 73% YoY. In addition, the Shanghai-based firm recorded a net loss of RMB 784.7 million during the third quarter, narrowing from a loss of RMB 2.3 billion in the same quarter of 2019.
“Great to see such a positive quarter from Pinduoduo post-pandemic in China,” noted Arnold Ma, founder of Qumin, a digital marketing agency based in London and Shanghai, echoing Wu’s comments.
Ma believes that the key to Pinduoduo’s growth is its continuing focus on its D2C (direct to consumer) model across manufacturing, agriculture, independent sellers, and new brands. DuoDuo Maicai is a dedicated C2M function for farmers to directly reach consumers, which the company launched in October.
Pinduoduo’s strong performance is evidenced by the average annual spending per user increasing from RMB 1,857 (USD 280.84) in the second quarter to RMB 1,993 (USD 301.41) in the third quarter, despite the net addition of 48 million active buyers.
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