A very short thread on some thoughts on $PDD
Saw a really interesting comment about why $PDD enjoys great success in China. Fundamentally it is because China still have many low income workers and the difference in shopping methods.
Saw a really interesting comment about why $PDD enjoys great success in China. Fundamentally it is because China still have many low income workers and the difference in shopping methods.
When mid to high level income earners shops, they first look at the product, and the reviews, and lastly if the price is ok, they will buy the product.
On the other hand, when low level income earners shops, they first look at the price, then if the product is ok, they will buy the product. The focus is completely reversed.
The focus of the two approaches is completely different, and $BABA, $JD has been focusing on the product (the first shopping method), whereas $PDD has been solely focused on the price (the second shopping method).
Therefore, since there are still many low income workers in China, $PDD has focused on the correct thing, that is 'price', and captured a wide group of low income earning customers, yielding $PDD's current success.
However, my question is will $PDD business method still work when these low income workers earn a higher wage, and can $PDD successfully transition to attracting higher income earners?
Please let me know any thoughts you all may have on $PDD, I am very keen to know. Thank you!
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