added by sari and · updated 2d ago
Pinduoduo and Vertically Integrated Social Commerce
- Pinduoduo’s model was simple: buy everyday items and receive discounts of up to 90% by completing in-app actions or inviting friends to buy them as well. Prices were set by suppliers, and a user's very first purchase was almost always subsidized at a discount by PDD. Subsequent purchases could be made at the full-price, or discounted with a team or... See more
from Pinduoduo and Vertically Integrated Social Commerce by Turner Novak
sari added 3y ago
- A live streamed event in June of 2019 sold 400 cars over Pinduoduo in 18 seconds.
from Pinduoduo and Vertically Integrated Social Commerce by Turner Novak
sari added 3y ago
- Pinduoduo, meaning “together, more savings, more fun”, eliminated layers of middlemen and flipped the retailing model from being supply-driven to demand-driven. The team used a mobile-first approach that gave it a fundamentally different product DNA than incumbents. It used fruit as a wedge to combine consumption with entertainment and created a ve... See more
from Pinduoduo and Vertically Integrated Social Commerce by Turner Novak
sari added 3y ago
- As it amassed users, Pinduoduo began predicting, and then influencing consumer demand elsewhere. Its team buying model flipped the retailing model from supply-driven to demand-driven. It would be as if Facebook went a step further than partnering with direct to consumer brands dropshipping from overseas, and instead created a Shopify-like tool for ... See more
from Pinduoduo and Vertically Integrated Social Commerce by Turner Novak
sari added 3y ago
- While some of Pinduoduo’s incredible growth could be attributed to WeChat, one of the biggest shifts in Chinese consumer behavior has been from the “search, pay, and leave” model of traditional ecommerce to social commerce. That wasn’t just WeChat. Much of PDD’s recent success has been due to its game-like mechanics.
from Pinduoduo and Vertically Integrated Social Commerce by Turner Novak
sari added 3y ago
- Pinduoduo recently announced a move into real estate. Users paid a ~$1k refundable deposit to take part in a team purchase on a 1,000 unit property under development. 600 units were sold. It appears unrelated to the core business at first, but real estate has a high GMV and typically precedes many other large purchases made by new families. Similar... See more
from Pinduoduo and Vertically Integrated Social Commerce by Turner Novak
sari added 3y ago
- Where others failed with asynchronous purchases of “nice to have” high-end products, Pinduoduo created a synchronous mobile shopping experience equivalent to going to the mall with friends.
from Pinduoduo and Vertically Integrated Social Commerce by Turner Novak
sari added 3y ago
- Like Amazon used books, PDD used fruit as a wedge to build what became one of the world’s largest ecommerce companies in five years. It went a step further than Tencent building games, or Facebook selling ads, and created an asset-light vertically integrated social gaming company. It built farmers, and eventually manufacturers, a business-in-a-box ... See more
from Pinduoduo and Vertically Integrated Social Commerce by Turner Novak
sari added 3y ago
- Competitors’ interfaces were search-driven, required heavy investment in SEO, and often centered on multiple product displays. PDD’s feed-based interface placed more exposure on single products. This gave it full control over distribution to influence consumer purchase decisions in ways most favorable to PDD and its suppliers’.
from Pinduoduo and Vertically Integrated Social Commerce by Turner Novak
sari added 3y ago