In recent years, PDD has perfected a system that was called “farmer to fork” when it was founded. In 2015, Pinduoduo started in China as a food delivery service with the special feature of delivering directly from the producer to the end customer. God knows that PDD did not invent this principle, but promoted it more vehemently than others. And transferred over time to other categories, such as electronics or clothing. According to Alexander Graf, PDD now has a network of thousands of factories in China that produce specific products for PDD on demand, so to speak, in the desired quantity, color and shape. “PDD simply skipped the usual intermediate trading levels – while other platforms such as Ali Baba or JD are classic aggregation platforms with a wholesale function.” PDD is therefore content with a presumably significantly lower price premium than, for example, classic platform operators such as Amazon, Zalando and Co. and can sell much cheaper. Self Ali Baba and JD, who just a few years ago were considered the new Chinese high-flyers, says Graf, they don’t get it that way.
Is the Chinese shopping provider better than Amazon and Alibaba?
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