Your Guide to Chinese E-commerce Platform: Pinduoduo

When Pinduoduo was initially unveiled in 2015, it seemed there were no grounds for another e-commerce platform to take root in China. JD and Taobao had already accumulated a grasp over the online market of the country with their powerful presence.

Yet in just eight years, the Chinese e-commerce platform Pinduoduo has managed to stand apart and become a leading presence among Chinese e-commerce platforms.

What makes Pinduoduo different from other e-commerce platforms?

Pinduoduo 2022 - Top China shopping app

Pinduoduo has started a new trend of social e-commerce

It revolutionized the e-commerce industry by introducing a new model of social commerce where friends, families, or even strangers collaborate in chat groups to procure deals for items, either as individuals or collectively. This allows them to access discounts that are not available elsewhere.

Customer-to-manufacturer retail model

To stand apart from other search-type e-commerce sites, Pinduoduo decided to take an innovative social approach that was tailored toward the consumers and tapped into China’s emerging customer-to-manufacturer retail model. Pinduoduo is essentially a “marketplace of merchants” as opposed to other platforms that feature merchandise from large brands and companies only. This means that Pinduoduo has opened up the market for small businesses, making it easier for them to quickly and cost-effectively get their products online.

Pinduoduo offers a unique consumer experience

Shopping on Pinduoduo is more than an online retail experience – it’s entertainment. With a product feed that resembles social media, the site recommends products consumers likely love based on their previous browsing history.

Additionally, engaging live streams with dynamic presenters and fun games create excitement every time they visit the app. To top it off, they give out intrinsic rewards as part of their gamification system so there’s something new to discover each time.

Pinduoduo market insights

Pinduoduo continues its streak of success, as its second quarter 2022 financial report is stronger than ever. Last year, the company reported a whopping 37% increase in revenue to 32 billion yuan. And an incredible 270% surge in net profit rising to 8.9 billion yuan

Additionally, their core e-commerce ads business witnessed a 38% hike with a total income of 25 billion yuan representing significant growth for the organization’s success. Following this announcement of outcomes, Pinduoduo’s stock on Nasdaq skyrocketed by an incredible 20%

china ecommerce - pinduoduo mobile app - fresh products section

By 2020, Pinduoduo had already achieved an astounding 733 million monthly active users. This is a growth rate that makes Pinduoduo China’s fastest-developing e-commerce platform.

Pinduoduo’s 35% of users come from first-tier cities and the rest is equally divided between second and third tiers. While only 35 % are male, 65% range in age between 25-45 years old and almost half of them have only a high school degree.

How does shopping work on Pinduoduo?

Since there is no search bar or conventional methods for finding out specific products, Pinduoduo may confuse you at first glance. However, the smart design works pretty well and keeps the audience interested.

When you open Pinduoduo, the first thing that will draw your attention is a personalized selection of products tailored to your profile and preferences with an advanced algorithm. Once you’ve spotted something interesting, you can compare unique purchases with discounted prices depending on how many people join in for the purchase – forming what is known as a “shopping team“. Therefore, not only do customers have multiple options but they also benefit from different cost savings.

By creating a product code for their specified item, consumers can spread the word through social media networks like WeChat. As more people join in and form teams around this unique offer, buyers can enjoy discounted pricing.

How to create a seller account on Pinduoduo

Registering as an international seller on the platform is easy and can help you reach potential customers around the world. Here’s how:

  1. Firstly, visit the Merchant Sign-up page.
  2. Secondly, create your account and authenticate it with an SMS code sent to your mobile phone.
  3. After logging in to your account, begin the merchant registration process.
  4. First, determine what kind of store you own: a flagship store, department flagship store, exclusive or authorized seller.
  5. Afterward, to complete your qualification information for the next step in this process, make sure you have gathered the necessary documentation listed below:
  • You must provide a few documents such as your business license from overseas
  • The identification cards of the legal representative and store manager
  • Legal paperwork of distribution and logistics
  • And a refundable deposit based on your industry sector before submitting your application for approval.

With the rise of Pinduoduo, foreign brands can capitalize on this opportunity to generate lucrative sales – but how?

china ecommerce - pinduoduo live streaming ecommerce

Build a presence on Chinese social media

The first and most important step for Pinduoduo marketing in China is to build a presence on Chinese social media platforms. This includes WeChat, Sina Weibo, Toutiao, Douyin (TikTok), RED, Little Red Book, etc., depending on the target audience.

Create engaging content

Content is the key to successful Pinduoduo marketing in China. Brands should create content that resonates with Chinese consumers, while also highlighting the unique selling points of their products or services. This can include educational videos, product reviews, customer testimonials, and more.

Invest in targeted advertising

Targeted advertising on Chinese social media platforms is an effective way to boost visibility, create more leads and drive sales. Ads should be tailored to the platform being used; for example, WeChat ads are typically more interactive than ads on other platforms.

Leverage influencer marketing

Influencers can be a great way to reach a wider audience and increase brand awareness on Pinduoduo. Influencers will often have their fan base and followers, who are more likely to engage with their content.

Use targeted campaigns

Pinduoduo marketing in China is all about targeting the right audience. To maximize your return on investment, identify which campaigns are most effective for reaching your target customers and focus your efforts on those.

We can help you enter the Pinduoduo platform

If you are interested in creating your e-commerce and social media presence in China, we can help you. Our team of professionals has extensive experience in the Chinese market and can advise on how to create a successful marketing campaign.

Contact us today and let us help you launch your brand into a success. We offer a free consultation with one of our experts that will learn about your brand and present the best solutions to sell your products in China.

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