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Pinduoduo SWOT & PESTLE Analysis

ID : 52884553| Apr 2021| 23 pages

COMPANY PROFILE -Pinduoduo

Business Sector :Ecommerce, Information Technology

Operating Geography :China, Asia, Global

About Pinduoduo :

Pinduoduo is the largest agriculture-focused platform headquartered in Shanghai, China, serving 788 million active buyers as of March 2021. The company creates a platform that connects farmers and distributors with customers directly through its interactive shopping experience. Pinduoduo was established in 2015 and now has become the fastest-growing tech company in the world. Pinduoduo's marketplace platform offers value-for-money goods through a fun and engaging experience. Consumers, initially in smaller cities and rural areas, but increasingly in top-tier cities, have flocked to it because of its lower prices and emphasis on agricultural goods. From its humble beginnings as a marketplace based solely on fresh produce, the platform has rapidly extended its product portfolio to include everything from groceries to apparel, cosmetics, and electronics. On Pinduoduo, users can discover and purchase products from a wide range of sellers. Users are presented with a customised feed of items to enable them to explore, creating a user experience that is more akin to visiting a real-world shopping mall or bazaar. In 2021, the company aims to promote digital inclusion by contributing to the digitization of the agriculture ecosystem and to constructing an agri-focused logistics infrastructure network that will minimise waste, lower costs and increase the speed at which agricultural products are delivered. In October 2020, Pinduoduo was awarded the National Poverty Alleviation Award “Organization Innovation Award” selected by the State Council's Poverty Alleviation and Development Leading Group.
Pinduoduo's Unique Selling Proposition or USP lies in developing a revolutionary "modern e-commerce" platform, merchandise with a strong emphasis on quality control that is good value for money and a broad and active customer base that has been developed through a fun and engaging shopping experience. The company's mission statement reads, "We aim to become a global and institutional technology platform by being rooted in our three principles Benefit All, People First and being More Open".

Pinduoduo Revenue :


CNY 30141 million - FY ending 31st March 2019
CNY 13119 million - FY ending 31st March 2018

Competitive Analysis of Pinduoduo

SWOT
PESTLE

The SWOT analysis for Pinduoduo is presented below in a matrix followed by the detailed analysis report

Strengths
Weaknesses
1. Unique Business model focusing on group buying behaviors.
2. Strict merchant quality control measures for a great user experience
3. Massive and diverse data sources to power distributed AI infrastructure for personalized recommendations
1. Dependance on third-party logistics providers for customer satisfaction.
2. Dependance on merchants to ensure order movement in a timely manner.
3. Devoid of business insurance coverage
Opportunities
Threats
1. Implementing technology to help boost agriculture.
2. Increase in growth of online grocery shopping market.
1. Service interruptions of third-party logistics providers and interruption of e-way bill systems.
2. USTR negatively acknowledging Pinduoduo platform
3. Tremendous competition in the e-commerce sector
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Pinduoduo

Strength

This section is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

1. Implementing technology to help boost agriculture:Pinduoduo, which is considered to be China’s largest agriculture focused ecommerce platform has been experimenting and hosting competitions to allow technology enthusiasts to bring in new solutions to change the traditional way of cultivation. It will try deploying the smart agriculture solutions brought forward in the competition by the Food and Agriculture Organization (FAO) to traditional farms to allow budding agriprenuers to test their ideas at a larger scale. As Pinduoduo is devoted to helping farmers grow and consumers “buy well”, their goal now is to bring cutting edge tech to the fields of China and allow even small farmers with preferable smart Agri tools. As the Chinese agricultural industry is characterized by small farms, low digitization and e-commerce penetration, it is difficult to achieve economies of scale apart from the problem of a dwindling and aging workforce. Pinduoduo has planned to invest in developing a smart logistics system for agricultural produce transportation that can provide delivery in a very short time.

The remaining section under "Opportunity"is available only in the 'Complete Report' on purchase.

Threats

This section is available only in the 'Complete Report' on purchase.

Major Competitors :

SWOT & PESTLE (combined)
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TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
References used in Pinduoduo Analysis Report

1. How China’s e-commerce law will affect retailers, sellers, and consumers - https://www.the-future-of-commerce.com/2019/01/30/chinas-e-commerce-law/
2. ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019. - https://investor.pinduoduo.com/static-files/0ad89f79-7123-4072-8662-d5509227526c
3. Technology beats humans at growing strawberries in Pinduoduo smart agriculture competition - https://investor.pinduoduo.com/news-releases/news-release-details/technology-beats-humans-growing-strawberries-pinduoduo-smart
4. AI in eCommerce: 10 Ways Artificial Intelligence Can Help Your Online Store - https://www.easyship.com/blog/ai-in-ecommerce
5. 7 NEW CHINESE E-COMMERCE TRENDS TO WATCH IN 2019 - https://qpsoftware.net/blog/ecommerce-china-trends
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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SWOT & PESTLE.com (2021). Pinduoduo SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/pinduoduo/ [Accessed 06 May, 2021].

In-text: (SWOT & PESTLE.com, 2021)

Copyrights and Disclaimer

Pinduoduo SWOT and PESTLE Analysis has been conducted by Aakash K Basu and reviewed by senior analysts from Barakaat Consulting.

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