![]() In September, Alibaba ran "Super Bargain Day," which took aim at such users with generous coupons and prices halved for 1 million items. Pinduoduo is ranked second in the number of active buyers, analysts say. Pinduoduo reported 483.2 million active buyers at the end of June, versus Alibaba's 674 million. JD.com has 321.3 million annual active customer accounts. New users from those areas spent on average 2,300 yuan during that period, Alibaba said, However, Pinduoduo's annual spending per active buyer, at 1,467.50 yuan at the end of June, is lower than that of Alibaba, which said in September that users from less-developed areas who have been on its platforms for five years spent on average 10,600 yuan in the 12 months that ended in March. "China's e-commerce has been a duopoly market for years. Out of everyone's expectation there came Pinduoduo, emerging with a completely different set of practices to engage with users," said Keso Hong, a independent internet commentator in China.Īnalysts say Pinduoduo gained a foothold in the market thanks to the shortcomings in some of Alibaba and JD.com's models. The two e-commerce giants built their businesses on the country's burgeoning middle class, competing intensely to woo big international brands like Burberry or Valentino to set up online stores. But it was hard to persuade residents in lower-tier cities that they needed to shop for luxury goods online. Pinduoduo, in contrast, set its sights on bargain-hunters in lower-tier cities. ![]() "Pinduoduo is similar to Facebook that we designed our feed-based model to recommend products to users," Victor Tseng, vice president of corporate development at Pinduoduo, told Reuters. Its model encourages users to recommend products to friends and family to gain discounts, and heavily leverages WeChat, China's dominant messaging service, which is owned by Pinduoduo-backer Tencent Holdings.
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