Thanks to its ability to take hold in smaller cities, the Shanghai-based e-commerce platform Pinduoduo has boomed in China. 135 million people are buying every day on Pinduoduo.
Alibaba is still without doubts PRC based e-commerce platform. But behind the scenes a new David is growing incredibly faster. According to data, Pinduoduo displaced JD.com to be the fourth most valuable internet company in the country wit 135 million daily users, US$117.5 billion GMV, connecting 536.2 million annual active buyers and more than 3.6 million merchants.
With a market capitalization of $47.6 billion, Pinduoduo is right behind the e-commerce leader Alibaba, the social networker giant Tencent and the food delivery titan Meituan. As we know, Chinese digital and hi-tech landscape are expanding super-fast, following a way beyond measure.
Pinduoduo is the new online shopping platform adapted to Chinese mass market. The strength of Shanghai-based e-commerce giant are lower tier cities. Pinduoduo is coming down as the new be in terms of internet penetration and rise of social commerce. The platform is very popular about its price-sensitive residents among 3rd and 4th tier cities, a market kind of undeserved by other online retail pioneers such as Alibaba and JD.com.
Currently, Pinduoduo is the second most used e-commerce platform and the fastest growing app in the history of the Chinese internet. The explosive growth of Pinduoduo is essentially attributable to ties with its investor Tencent which enables it to sell via WeChat’s lite app and tap the giant’s vast social network. The startup, whose name is roughly translated as “buy more together”, was launched in Shanghai in 2015. It turned into a Unicorn after just 21 months, reaching $1.5 billion gross market value much faster than its older peers like JD.com and Alibaba’s Taobao.