Pinduoduo and Vertically Integrated Social Commerce

Digital has led to market fragmentation in nearly everything. Reduced opportunity costs have spawned a plethora of Direct to Consumer (DTC) brands which will continue for the foreseeable future. Small niche startups will continue to build followings and “tribes” in ways that couldn’t have been imagined in the pre-internet era.

It's a digital age QVC but with the added FOMO that the other thousand viewers could buy out the stock before you get there. Driven by a fear of counterfeit goods and a demand for experiential retail, viewers love the instant gratification of seeing the product in action then immediately buying it. The backdrop to the buying frenzy is a holistic e-... See more

In just five years, Pinduoduo has attracted 585MM users and reached ~$140B in annual GMV. Much of the e-commerce platform's success has come from its "social buying" features, which encourage consumers to team up, order in bulk, and receive discounts. This premise could work well in the US. We're continuing to see a shift from thinking about supply... See more