But this has come after investor enthusiasm pushed the share price up about 275% in the last year, fuelled by a significant surge in businesses during the pandemic lockdown as consumers headed online. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Huang, a former software engineer at Microsoft and Google, established Pinduoduo in 2015 as a farmer-to-consumer business. Initially it purchased produce from growers before selling it on to shoppers, but later transitioned to a pure marketplace, hosting third-party vendors on its site and connecting them directly to consumers. Total operating expenses for the quarter were ¥13.8 billion, compared with ¥17.1 billion in the same quarter the previous year.
It had 8.6 million active merchants in 2020 and 867 million active buyers in the year ended September 2021. A seller on PDD lists a price for an individual purchase, and a much lower per-person price for a team purchase. People who want to do a team purchase can either join an existing group on the PDD platform, or they can pitch the group purchase on the messaging app WeChat and hassle their friends into joining. That model has not only upended low-cost retail, by offering customers a chance to save money through bulk discounts, but it also has turned individual shoppers into salespeople for PDD products. o, Inc. operates as a holding company, which engages in the development and management of an e-commerce platform. Its Pinduoduo mobile application offers a selection of merchandise for buyer acquisition and engagement.
It is a company that is just about to turn five years old but is valued more highly than the oil giant Shell, or HSBC, one of the largest banks in the world. Wall Street closed mixed on Tuesday as market participants waited for the Fed??? Operating profit in the quarter was ¥6.9 billion compared with an operating loss of ¥2.1 billion in the same quarter of 2020.
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But he suggested that the company will need to shift its focus to upstream innovation, in areas such as foodtech and biotech, to remain relevant in the longer term. In a letter to shareholders, Huang said that Pinduoduo’s success in boosting farmer incomes and cutting costs for consumers had been driven by its improvements in downstream distribution and midstream supply chain efficiency.
- By clicking on the daily check-in icon, a user starts accumulating rewards.
- People who want to do a team purchase can either join an existing group on the PDD platform, or they can pitch the group purchase on the messaging app WeChat and hassle their friends into joining.
- Other institutional investors also recently made changes to their positions in the company.
- We have on the show Xin Yi Lim, who is the executive director of Sustainability and Agricultural Impact at Pinduoduo.
o is an e-commerce platform that offers a wide range of rock bottom priced products from home appliances to daily groceries. Its key differentiator from other Alibaba’s Taobao and JD.com is it’s ‘team purchase’ model.
He pointed to the Taiwanese supermarket chain 99 Ranch as one example, or a vegan grocery store on the other hand. Plenty of e-commerce companies have attempted to replicate the PDD community commerce model in other markets. pinduoduo stock price todayo, an agriculture-focused e-commerce platform, is one of the largest e-commerce companies in the world — and it can attribute much of that success to its innovative group-purchasing model. Revenues from online marketing services and others were up 51% to ¥72.6 billion ($11.4 billion), up from ¥48 billion in 2020. Transaction services went up to ¥14 billion ($2.1 billion), a 144% increase from 2020’s ¥5.8 billion.
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Therefore, from now on, DotBigo must focus on its technology developing and applying more standardised management. Asian equities were mostly higher overnight as Hong Kong outperformed, led by internet stocks following the strong performance in US-listed China internet stocks yesterday. Data, information, or opinions contained in Quantalytics in any form give no consideration to any particular individuals’ investment needs or objectives, nor do they consider any individuals’ financial condition. Consequently, any such data, information, or opinions do not in any way represent a personal recommendation to any individual investor or any entities, whatever the type.
According to Wang, some have logged as many as 380 hours for special projects. https://www.us.hsbc.com/o, one of China’s largest and fastest-growing online retailers, is again being scrutinized for how it treats its employees after firing a worker who had complained about what he perceived to be an oppressive corporate culture. Huang also has a penchant for idiosyncratic letters to shareholders, the most recent accompanying the company’s annual results in April. Some analysts have questioned whether Pinduoduo’s model is essentially a bubble and whether it will ever be sustainably profitable. As a result the company is now also trying to cultivate an image as a destination for more premium products, gaining high-profile coverage for events such as the Tesla sale and offering big discounts on products from brands like Apple. When Pinduoduo shoppers managed to pick up bargain-priced Tesla cars through a group-buying event on the site, the US electric carmaker at first refused to supply the vehicles. Tesla only sells direct to buyers through its website, cutting out dealers and middlemen.
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What sets https://dotbig.com/o apart from China’s other e-commerce giants, such as Alibaba and JD.com, is that it uses social media. Buyers put details of products on sites like WeChat – China’s answer to WhatsApp with 1.2 billion users – to get friends and family to buy as a group. A selloff in DiDi Global Inc.’s stock , after the China-based ride-hailing company disclosed into its June 2021 initial public offering, sent other U.S.-listed shares of China-based companies lower. The U.S.-listed shares of China-based companies enjoyed a broad rally Wednesday, after China regulators released , another sign of easing of the regulatory crackdown on the country’s technology sector.
In total, the company plans to open 10 physical locations across the globe in a quest for better margins and growth. But Australian luggage brand July says business is now beginning to boom. Co-founder and chief strategy officer Athan Didaskalou joined the Modern Retail Podcast and talked about the brand’s growth. On its own platform, PDD has also become a kind of entertainment hub, especially through its use of livestream shopping. On the PDD platform, small farmers are increasingly streaming videos of themselves hawking their produce — and some livestreams have brought in as much as $28,000 worth of produce sales. DotBigo told Modern Retail that, last spring, more than 67,000 farmers sold 790,000 tons worth of produce through livestreaming. The company also hosts a number of video games on its platform, including the game Duoduo Orchard, where players win prizes in the form of real fruit.
The most popular sales on Pinduoduo are always those which meet people’s daily needs with lower price. But the products that are unexpectedly a hit in the marketplace can cause the underserved traders to fail delivery, misdelivery and customer refund. Since the counterfeit credibility crisis, Pinduoduo has begun to focus on evaluating the products and services offered by shopkeepers, leading to conflicts between the two sides.
This is part of a Modern Retail editorial package focusing on the vast world of e-commerce platforms outside of the United States. It is the slowest rate of growth since the https://dotbig.com/markets/stocks/PDD/o went public in the U.S. on Nasdaq in 2018. PitchBook’s non-financial metrics help you gauge a company’s traction and growth using web presence and social reach. As of 2019, Pinduoduo has amassed a 7.3% market share, coming behind JD.com (16.7%) and Alibaba (55.9%) according to eMarketer. Tapping into the fastest-developing areas in China, Pinduoduo is a popular outlet for international brands to achieve high volume sales fast. Pinduoduo users can invite friends and family on social media to join a group deal in order to generate discounts.
Li also pointed to other features of PDD’s growth strategy that may have explained its rapid ascent. For instance, she said that groceries are a necessity for everyone, a fact that may have “reduced onboarding friction” for people interested in joining a group purchase. She also said that PDD focused much of its expansion in smaller cities, where people have less disposable income on average and may have been more sensitive to the bulk discounts that come with a group grocery purchase. In addition, https://dotbig.com/o needs to think about how to strengthen user loyalty to the platform. Pinduoduo’s founder, Colin Huang believes that most present-day Chinese consumers have used the Pinduoduo platform.