China

E-commerce: JD.com Challenges Pinduoduo Thanks To WeChat

Alibaba and JD.com are penetrating lower-tier cities, challenging Pinduoduo in the e-commerce market

JD.com has launched its e-commerce service, also launching a clear challenge to the Pinduoduo platform. The new service comes in the form of a dedicated app, called Jingxi, as well as a mini-app that resides in WeChat. Jingxi users will be able to access the service via WeChat’s “Discover” tab from the beginning of October.

The move also marks China’s most recent heavyweight e-commerce effort to expand their presence in lower-tier cities in China and even in rural areas. The goal is to seek additional growth, as the one related to the online shopping market has grown in the cities and cities of the upper level of the Middle Kingdom.

What sets Jingxi apart is the Factory-to-Consumer (FoC) model

Jingxi is an update from its predecessor named JD Pinguo, which is aimed primarily at Chinese consumers and small-town shoppers with ultra-affordable items.

Jingxi offers flash sales and items at a special price. Furthermore, buyers can enjoy huge discounts both when they share an article with their friends, or simply by adhering to an ongoing group purchase contract on the app.

However, what could help distinguish Jingxi is the Factory-to-Consumer (FoC) model that, the service, offers in an attempt to provide cost-effective, yet quality items.

Both Alibaba and JD have launched their own initiatives

The rampant and almost miraculous growth of Pinduoduo has already enlivened the e-commerce world, with Alibaba and JD under pressure due to a slowdown in the Chinese economy and a saturated e-commerce market in the country’s cosmopolitan cities. Both Alibaba and JD, at this point, have launched their own initiatives, through Juhuasuan and Jingxi, respectively, to reach unexploited consumers in the Chinese hinterland.

Earlier this month, Alibaba made sales for Super Bargain Day, which mainly featured low-priced items and thus generated an approximate gross volume of goods of $ 8.3 billion in two days.

Even JD.com, for its part, has seen better growth from lower-tier cities than higher ones. Now about half of the users come from lower-tier Chinese cities, according to statistics based on their customers’ addresses.

According to official data, China’s online retail sales increased 17.8% year on year to $684 billion in the first half of this year. Alibaba and JD topped the list, but new platforms such as Pinduoduo are immediately behind.

Categories: China, ECommerce

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