The successful IPO of Pinduoduo, the third e-commerce platform in China after Alibaba and JD.com, took many by surprise. But it does not mean Pinduoduo will be equally successful in the future, warns business analyst Shaun Rein, author of The War for China’s Wallet: Profiting from the New World Order, at the South China Morning Post. Just days later, it was accused of hosting counterfeit goods.
The South China Morning Post:
Alibaba has spent millions of dollars in its efforts to fight counterfeits, including using artificial intelligence systems that can automatically identify, take down and block listings that appear to be knockoff or counterfeit goods
Whether Pinduoduo’s rapid rise to fame turns out to be a flash in the pan or it becomes a genuine competitor to incumbents like Alibaba and JD.com remains to be seen, according to Shaun Rein, founder and managing director of the China Market Research Group.
Some of its most popular products are commoditised items like toilet paper or laundry detergent.
“Many consumers are looking for better value and are becoming more price sensitive on items they don’t care about,” said Rein. “When you’re not rich, you don’t care what toilet paper you use to wipe your butt.”
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