Pinduoduo Plans Direct Brand Strategy, Co-Creating Products with Manufacturers
E-commerce platform Pinduoduo plans to collaborate with manufacturers on product development, including definition and quality standards. The strategy is expected to take longer than initially anticipated.
Chinese e-commerce platform Pinduoduo intends to deepen its engagement with manufacturers by co-creating new products. The company will participate in product definition, research and development, quality standard setting, and market testing.
Co-chairman and co-CEO Zhao Jiazhen confirmed that the launch of the company's first-party brand business will take longer than initially expected. However, he reaffirmed its importance as a long-term supply chain strategy.
The new, jointly developed products will coexist with goods offered by third-party merchants on the platform. This initiative aims to enhance Pinduoduo's product selection and value proposition for consumers.
The strategy positions Pinduoduo to potentially gain greater control over its product offerings and improve margins in the competitive Chinese e-commerce landscape, where direct manufacturer collaborations are becoming more common.