Pinduoduo ( PDD 15.59% ) is an uncommon firm. Founded in 2015, the corporate took just a few years to change into the second-largest e-commerce platform in China (by energetic consumers), behind Alibaba ( BABA 6.62% ). But because the tech firm entered the limelight thanks to all its success, the founder stepped down to pursue his different pursuits.
Another uncommon resolution that Pinduoduo took was to make investments closely in the agriculture business. For instance, the corporate plans to allocate 10 billion yuan of its income (ranging from the second quarter of 2021) to improve productiveness and promote sustainability of the agriculture business. But why agriculture? Here are two potential elements that doubtless contributed to that pivot.
Image supply: Getty Images.
1. Agriculture merchandise are nice for person retention
In China, the e-commerce business could be very aggressive. On high of the three main gamers, specifically Alibaba, Pinduoduo, and JD.com, numerous smaller gamers comparable to Vipshop and new entrants like Douying and Kuaishou are all eyeing a share of the e-commerce market.
As such, customers (and their time) have now change into the limiting issue for e-commerce corporations, which could be very completely different from the early days of Alibaba. In these days, the platform that had probably the most merchandise would win. Today, platforms should provide way more — low costs, entertaining procuring experiences, comfort, and different enticements — to appeal to and retain customers.
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