Pinduoduo: Agricultural Product Sales Hits 65.3 Billion In 2018
GMV of agricultural and related products sold on its platform amounting CNY 65.3 billion (USD 9.7 billion), increasing from CNY 19.6 billion (USD 2.9 billion) with a growth rate of 233%.
According to 36kr, Pinduoduo (PDD) earlier published a report showing the GMV (gross merchandise volume) of agricultural and related products sold on its platform amounting CNY 65.3 billion (USD 9.7 billion), increasing from CNY 19.6 billion (USD 2.9 billion) with the growth rate of 233%.
PDD is the third largest e-commerce platform in China after Taobao backed by Alibaba and JD.com. It has been listed on the NASDAQ stock market in the United States with valuation at USD 35 billion.
This is part of PDD’s poverty alleviation plan. Helping those who live in poverty-stricken areas selling their agricultural products which could significantly increase their living standards.
Moreover, the underdeveloped areas have not yet been the main focus of the other two e-commerce giants which might leave PDD a huge chance to catch up and exploit untapped potentials.
Ending 2018, there are 140 thousand poverty-county-based businesses registered on PDD with annual GMV reaching CNY 16.2 billion (USD 2.4 billion). In some most poverty areas, there are around 24 thousand businesses registered with annual revenue of around CNY 935 million (USD 1.4 billion).
Other than helping to prompt agriculture to relatively developed cities, it helped to create more than 300 thousand jobs in logistics, operation, and agricultural products manufacturing fields.
On the other side, it is also crucial to enable access to online shopping for underdeveloped areas residents. As EqualOcean mentioned previously that in total PDD subsidized around CNY 1 billion to boost online consumption among rural areas.
Dada, the co-founder at PDD, once said “in 2019, PDD will invest more to improve the infrastructures for agricultural products and further tackle producing and selling the agricultural product in its targeted areas especially those under the poverty line. In the same time, PDD will closely work with local governments to improve logistics infrastructure, create brands regionally for agricultural products, and upgrade agricultural products manufacturing process”.