PDD posts quarterly results, shows new supply chain project · TechNode

Together with the announcement of quarterly earnings, PDD additionally unveiled its newest main program, “10 Billion Ecosystem Initiative,” marking the corporate’s third initiative value RMB 10 billion ($1.4 billion) following the “10 Billion Subsidy” and “10 Billion Agriculture” initiatives. The first goal of this plan is to allocate further sources to high-quality sellers, aiming to reinforce the general service effectivity and high quality of the platform’s retailers.

This transfer aligns with the feedback made by Chen Lei, PDD’s co-CEO, through the earnings convention name. He emphasised the corporate has been steadily shifting its strategic focus from pursuing speedy development to emphasizing the standard of development.

“Underneath our long-term methods, we’re constantly strengthening our provide chain capabilities and increasing the availability of high-quality merchandise. We are going to additional improve our help for high quality sellers by launching our 10 Billion Ecosystem Initiative and additional enhance the standard of our service whereas persevering with to optimize our platform ecosystem.” Chen mentioned.

Began as a platform for promoting agricultural merchandise, PDD is understood for its steady and environment friendly provide chain. The corporate continues to uphold its coverage of zero fee on agricultural merchandise. Consequently, agricultural retailers spends about solely one-third to one-half on Pinduoduo than on different platforms. In early April, the corporate appointed co-founder Zhao Jiazhen as co-CEO. Zhao, with intensive expertise in provide chains, focuses extra on provide chain administration and home enterprise operations, whereas Chen Lei leads international expansions.

The co-CEO lineup highlights the corporate’s dedication to advancing provide chain enlargement and optimization. Throughout the early days of the corporate, Zhao performed a key position in general operations and provide chain growth within the agricultural enterprise. In 2020, he efficiently led the Duoduo Maicai crew in pioneering the group group-buying enterprise mannequin in Jiangxi province.

In accordance with numerous reviews, underneath Zhao’s management, PDD’s specialised groups will progressively discover 100 high-quality industrial hubs throughout not less than 10 provinces in China this yr.

A mature and strong provide chain depends on numerous and high-quality sources of products. Pinduoduo’s new main initiative seeks to uphold the corporate’s place as a vital supply of products within the e-commerce trade. The corporate guarantees this program not solely includes offering monetary help of billions of {dollars} to high-quality retailers, manufacturers, and small and medium-sized enterprises but additionally aiding these retailers in increasing into worldwide markets.

Additional subsidy for 618

Forward of this yr’s mid-year 618 buying pageant, PDD launched its 10 billion yuan subsidy program on April sixth, particularly focusing on house home equipment and shopper electronics. Along with the prevailing subsidy, they may make investments one other to supply additional 10 billion yuan in subsidies for a variety of digital house home equipment, together with smartphones, tablets, fridges, air conditioners, and others.

Main home and worldwide manufacturers corresponding to Apple, Huawei, Honor, Xiaomi, Midea, Haier, Sony, TCL, Nintendo, Dyson, and Vivo have already participated in this system.

PDD may even collaborate with manufacturers like Midea, Haier, Xiaomi, Vivo, Asus, TCL, and Hisense to launch a sequence of factory-direct merchandise. Combining subsidies with direct gross sales to supply higher reductions and advantages to customers.

By selling the direct connection between well-liked manufacturing facility merchandise and customers by subsidies and direct gross sales, this strategy advantages each the availability and demand sides. This initiative goals to supply customers aggressive costs and increase the manufacturing sector’s restoration.

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