Pinduoduo is stepping up its analysis and growth (R&D) spending because it invests in science and know-how to make farming extra environmentally sustainable.
R&D spending rose 34% within the third quarter from a yr earlier to 2.4 billion yuan ($376.0 million), the very best degree since IPO, in response to the corporate’s quarterly outcomes announcement.
“We are placing more focus on investments in R&D, away from the previous emphasis on sales and marketing in our first five years,” stated Chen Lei, Pinduoduo Chairman and Chief Executive Officer. “We want to leverage our strength in technology to deepen our digital inclusion efforts in agriculture.”
Pinduoduo has been deeply rooted in agriculture since its institution in 2015. The firm has turn out to be the most important agriculture platform in China, connecting 16 million farmers to its 867.3 million shoppers. Even so, there may be nonetheless “much more” for the corporate to do in agriculture, particularly with know-how, stated Chen. “Therefore, we plan to deepen our investment in tech-enabled agricultural solutions, to address critical needs in this sector,” he stated.
Pinduoduo’s enhance in R&D spending comes as know-how takes on an more and more necessary function in upgrading productiveness and effectivity within the agriculture sector. Globally, farming is present process a wave of transformative change as know-how automates repetitive and labor-intensive duties. Technology can also be enhancing the precision of the rising course of, reducing extreme use of fertilizer and different inputs that may hurt the atmosphere.
One space that Pinduoduo has seen encouraging ends in is logistics. Since investing in constructing out a extra responsive, reasonably priced, and sustainable logistical system, the corporate has seen a discount in supply instances and meals waste and loss. This was achieved by means of know-how options like route planning, superior analytics, and cold-chain optimization, Chen stated.
Another space is precision farming. Pinduoduo began an annual Smart Agriculture Competition with the intention of demonstrating the constructive impression that precision farming methods can have on farm output and environmental sustainability. Participants on this yr’s competitors need to undertake a multidisciplinary strategy and apply diet science, precision farming, and different horticulture know-how to provide tomatoes. Pinduoduo can also be making efforts in expertise growth within the agriculture sector. To allow farmers to promote and develop higher, the corporate is coaching extra growers on find out how to run e-commerce companies, in addition to encouraging younger expertise to contemplate a profession in agriculture.