Pinduoduo recently launched their own vehicle sales on their digital retail platform. The company's platform is known for their retail market where consumers can team together to make group purchases and receive big discounts. Pinduoduo is now moving from sales of smaller, cheaper products to bigger items like cars. Starting out, the company wants to sell around 200 Wuling Hongguang S1s for 10% to 34% off.
The Wuling Hongguang S1, manufactured in a joint venture involving General Motors (GM) and two other Chinese automakers, is a leading car brand in China’s smaller cities and rural markets. The model a great fit for Pinduoduo, which has emerged as the go-to online shopping platform for consumers in China’s smaller cities. Of the 443.3 million active shoppers Pinduoduo exited the first quarter of 2018 with, ~65% lived in smaller cities. Alibaba, JD.com, and eBay finished the first quarter with 654 million, 310.5 million, and 180 million active shoppers on their platforms, respectively.
Pinduoduo’s venture into car sales opens another battlefront with Alibaba, which also sells cars on its marketplaces. Last year, Alibaba teamed up with Ford Motor to set up a car vending machine in China.
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