By continuing to browse this website, you consent to our use of cookies, as well as to our Terms of Use and Privacy Policy which provide additional information about how we process your data. This website uses cookies to enhance your user experience. Please read our Cookies Policy for more information on how we use cookies, as well as instructions on how to disable cookies. You may disable cookies through your internet browser settings, however this may result in some parts of the website not working properly for you.

INSIGHTS / THE BIG PICTURE

300 million users in 3 years: Cracking e-commerce the Pinduoduo way

China · Sep 19, 2018 · By Li Yuan

The dark horse of online retail is our key to understanding China's new consumer growth story

In less than two months since its stock began trading on Nasdaq, the share price of Chinese e-commerce upstart Pinduoduo has been steadily rising – gaining a record high last Thursday, with a 60% increase over its IPO price. Shares of its bigger rival, Alibaba, meanwhile lost ground in the same period, shedding nearly 15% on the NYSE.

Pinduoduo is just three years old. It has about 300 million users, compared with Alibaba’s 617 million. Another Chinese e-commerce giant JD.com, founded 10 years ago and for the longest time viewed as the biggest threat to Alibaba, has roughly the same market share as Pinduoduo.

The battle to rule China’s e-commerce market was deemed over a long time ago. Alibaba’s dominance had been unshakable, while runner-up JD.com was also consolidating its power as a logistics giant. No-one seemed to stand a chance of breaking the duopoly; even Amazon failed to make much of an impact. Until now.

Edited by Bernice Tang

This page is exclusive for Premium subscribers

Subscribe now to continue accessing our full range of insights and data.


Already have a Lister Premium Account? LOG IN

Tags