Chinese social commerce platform Pinduoduo rolled out a month-long promotion that will cost it RMB 10 billion (USD 1.46 billion), an investment it thinks will pay off by growing the app’s user base and spurring buying activities, according to a press release.
Pinduoduo, which now has nearly 420 million users, aims to have 10,000 buyers for each tailored product it rolls out in May. Pindouduo will introduce 10,000 such products at prices “even below the industry-wide recognized bottom line.”
The promotion engages nearly 2,000 companies to provide products, including some time-honored Chinese brands based in Shanghai and 500 manufacturing plants located across the country.
By the end of Saturday, a total of 2,477 products already met the 10,000 buyers goal, accounting for 62% of the 3,996 products rolled out thus far.
A Midea rice cooker priced at RMB 190 (USD 28) and a Supor pancake making machine priced at RMB 89 (USD 13) were among the most popular goods.
Pinduoduo is facing some pressure as Taobao is also increasingly going after its core segment, price-conscious consumers, with a dedicated area in its app to promote products which are of “premium value” but come at comparatively low prices.
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