China’s e-commerce market is changing as big players such as Alibaba adjust to thrifty consumers amid leaner times
- Discount retailer Pinduoduo posts biggest industry growth in third quarter, driven by focus on daily essentials
- Chinese e-commerce players are focusing on price amid leaner economic times and delivery disruption due to lockdowns
While Alibaba, which owns the South China Morning Post, remains the largest player in the country’s e-commerce market with its Tmall and Taobao platforms, competition is intensifying as consumers look for the best deals on offer.
Shanghai-based Pinduoduo, which is known for its value-for-money offers, reported a 65 per cent rise in third-quarter revenue to 35.5 billion yuan (US$5 billion). The strong sales growth at the company, which uses a consumer’s social media network to promote deals, contrasted with 3 per cent revenue growth at Alibaba over the same time period – although Alibaba’s sales of 207.2 billion yuan were about six times bigger.
Tam Tsz Wang, a DBS Bank analyst based in Hong Kong, noted that Pinduoduo is benefiting from its focus on lower tier cities and daily supplies, items which remain essential even though life is tougher.
