Subject category:
Strategy and General Management
Published by:
Amity Research Centers
Length: 20 pages
Data source: Published sources
Topics:
e-Commerce; China; New player; Competition; Groupon; Group buying; Gaming strategies; Profitability
Abstract
The Chinese e-Commerce app Pinduoduo's meteoric rise was truly phenomenal. It was the fastest growing e-Commerce start-up in China's history, achieving unicorn status in just two years of its launch. Second only to Alibaba in terms of monthly active users, it beat eBay in market value. Referred to as 'Chinese Groupon on steroids', Pinduoduo had successfully leveraged the team buying model with gamification features. Although Pinduoduo was strong on many financial metrics, many questioned its revenue model and long-term profitability strategy, especially with competition increasing from established players such as Alibaba and JD.com. Would Pinduoduo be able to sustain its success? What the future held for Pinduoduo remained to be seen.
Teaching and learning
This item is suitable for undergraduate, postgraduate and executive education courses.Time period
The events covered by this case took place in 2020.Geographical setting
Region:
Asia
Country:
China
Featured company
Pinduoduo
Type:
Public company
Industry:
e-Commerce platform
About
Abstract
The Chinese e-Commerce app Pinduoduo's meteoric rise was truly phenomenal. It was the fastest growing e-Commerce start-up in China's history, achieving unicorn status in just two years of its launch. Second only to Alibaba in terms of monthly active users, it beat eBay in market value. Referred to as 'Chinese Groupon on steroids', Pinduoduo had successfully leveraged the team buying model with gamification features. Although Pinduoduo was strong on many financial metrics, many questioned its revenue model and long-term profitability strategy, especially with competition increasing from established players such as Alibaba and JD.com. Would Pinduoduo be able to sustain its success? What the future held for Pinduoduo remained to be seen.
Teaching and learning
This item is suitable for undergraduate, postgraduate and executive education courses.Settings
Time period
The events covered by this case took place in 2020.Geographical setting
Region:
Asia
Country:
China
Featured company
Pinduoduo
Type:
Public company
Industry:
e-Commerce platform