The social e-commerce system comes initially. Pinduoduo has experienced remarkable growth since its 2015 start, partly due to its innovative social e-commerce philosophy. It differs from Taobao’s C2C and JD’s Business to consumer models. Still, it presents itself to the public as a new type of C2B grouping. To enhance sales by using platform advantages, traditional e-commerce platforms like Taobao and JD concentrate on platform increased market share. The main characteristic of “social e-commerce” would be its key trends, which depend on the fusion of Tanndu | eCommerce Platform with social, using the user’s social connections to advertise the platform.
The most well-known social business model in China is Pinduoduo. It has developed a unique digital environment that directly links merchants and customers through its engaging shopping environment.
Furthermore, Pinduoduo Group Buying in Shopify has emerged as one of China’s top e-commerce apps and has encouraged the world market to use S-Commerce tactics. Deals on a wide range of goods draw customers to this store.
Pinduoduo produced more than RMB (Chinese Yuan) 1.45 trillion in revenue growth value (GMV) during the previous 12 months as of September 30, 2020.
In the last year, there were 731.3 million daily active purchasers; in the third quarter of 2020, there were 643.4 million daily users per month.
What is the Process of Pinduoduo?
Customer-to-manufacturer (C2M) would be the business model used by Pinduoduo. They manage all the mediators, except for themselves, of course. Users of the app will be able to receive group reductions on products by going shopping together and purchasing items in bulk from the manufacturers.
When purchasing an object, consumers have two value choices:
- either at a regular value or
- a discounted value.
Therefore, customers must form a team of at least two individuals to obtain substantial reductions. Users of the internet store Pinduoduo may purchase goods by signing up for groups of individuals. Group shopping is reported to be more enjoyable and to offer even better savings than regular shopping. Consumers consider specific purchases from merchants on the site in a classic marketplace setup.
In addition, the marketplace’s vendors purchase products from producers worldwide. Since it enables them to profit, producers only provide their goods in bulk to merchants.