China's e-commerce Pinduoduo is struggling to keep pace with JD.com and Alibaba

Mar 13, 2020 PinDuoDuo JD.COM

Pinduoduo has been on the market for three years. And in order to overtake JD.com's users, it took four years. Therefore, it has always been regarded as a "dark horse" in the e-commerce arena.

With the rapid growth of Pinduoduo's users, it tells its own development story. But since its birth, Pinduoduo has been at a loss, which is closely related to its way of high subsidies and promotions. In addition, in order to seize the market, it has burned to much cash and it also uses traffic to make profit.

Pinduoduo's way has long been the usual marketing method of e-commerce. Amazon and JD.com are both pursuing scale effect, although they are at a loss. But this way is not easy.

On the evening of March 11, Pinduoduo released the fourth quarter financial report of 2019. The number of Pinduoduo's annual active buyers reached 585 million, the number of its average MAUs reached 481 million, and its net loss also reduced to 1.751 billion.

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