Expanding local sales network through low price sales

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The catchphrase for "Pinduoduo" is "A new EC founder, even lower prices through group purchases." Pinduoduo offers group purchase discounts, and many of its products are in the low price range.
For example, 50 rolls of toilet paper (six months' worth) can be purchased for 6.8 yuan (about 105 yen). Although there is no guarantee of quality, the price is surprisingly low.

Cheap products on Pinduoduo

The astonishingly low prices are a strategy to aggressively approach rural areas and low-income earners in regional cities (third and fourth tier cities). This approach has been successful, adding 200 million new users in a year and a half.
China's first and second tier cities are commercial centers such as Shanghai, Beijing, Shenzhen, Guangzhou, Chengdu, Hangzhou, Dalian, Chongqing, and Tianjin, where Alibaba Group and JD.com have already established market shares.
Therefore, Pinduoduo targeted regional users in untouched third and fourth tier cities such as Harbin, Shijiazhuang, Wenzhou, Changchun, Nantong, and Foshan, competing with low-priced guatemala whatsapp data products and significantly expanding its market share.

Pinduoduo's Target

What is Pinduoduo’s cross-border EC “Duoduo International”?
Pinduoduo, which has 600 million monthly active users in China and a market capitalization that exceeds that of eBay, also entered the cross-border e-commerce market in February 2019.
For now, overseas customers are invited, and only businesses selected by Pinduoduo or newly invited businesses are allowed to open stores.
The name of the cross-border e-commerce is Pinduoduo International . Pinduoduo International has four formats, including a supermarket format for businesses with more than 35 registered trademarks and a flagship store for businesses with exclusive sales rights for brands. Over the
next three years, the plan is to attract 500,000 overseas small and medium-sized store owners, with the areas mainly being Japan and South Korea, but also Southeast Asia, Europe and the United States.

In addition, Pinduoduo International's sales strategy has changed from Pinduoduo's low price = cheap but bad to capturing the high-price market.
Chinese people who purchase foreign brands through cross-border e-commerce have a purchasing psychology of wanting high quality products even if they are a little more expensive.
Pinduoduo International is trying to grasp the psychology of buying high-quality foreign products even if they are expensive and meet that need.
In addition, foreign products sold through cross-border e-commerce are more expensive than domestic products, but Chinese consumers have long understood that they can get products at a lower price through cross-border e-commerce platforms than through traditional import routes. In other words, if you use cross-border e-commerce in China, you can buy foreign products at a much lower price than buying them through official import routes.
And by expanding the business of Pinduoduo International, it seems that Pinduoduo is trying to break away from its image of selling cheap products. By launching
a high-end route, it may be possible to shift from selling a lot of products at a low profit margin to increasing profits through selling a few products at a high profit margin.