Pinduoduo (PDD) - The Alibaba Killer!
PDD has gained significant market share and market value in a rapid rise to become one of China's leading E-Commerce Companies. Let's see how they did it and if it can continue.
This is the first of the shorter, 5-minute-ish, large-cap Articles that will now be published regularly. I’m still searching for the best way to write them, making them brief and easy to read while delivering maximum value.
I’m happy to receive any feedback on the structure of these posts. And comment which Company you want to see next!
Introduction - What is Pinduoduo?
Pinduoduo, now PDD, is a Chinese e-commerce company and online retailer founded in 2015 that quickly rose to the top of the Chinese industry. In January of 2024, PDD became the most valuable Chinese online retailer, overtaking Alibaba with a market cap of almost $190 billion (currently, they’re back at no.2).
PDD is focused on low-cost products. It undercuts every competitor's price and sells to consumers inside and outside of China. Europe and the US have become important markets for PDD through their mobile app Temu.
Contrary to many other Chinese companies, PDD is only listed in the US, not China, and its headquarters are officially based in Ireland.
Financials - Phenomenal Growth!
PDD has grown faster than any company I’ve seen in recent years and has quickly gained ~20% market share of the Chinese online market.
