Pinduoduo to Focus on Supporting New Brands in the Next Five Years
Zhang Chunyu, a researcher at the Chinese Academy of Social Sciences, believes that the upgraded 'new brand plan' will shift from benefiting a single enterprise to pushing the overall industrial belt's development.
On October 22, Pinduoduo announced that its 2018 'New Brand Plan' had entered the second phase. Specifically, this plan will cultivate new brands in four ways. First, it will support 100 industrial centers from 2021 to 2025 and release 100,000 new brand products, which is expected to drive CNY 1 trillion in sales.
Second, expand from serving top foundry companies to serving high-quality manufacturing companies in China, with the number increased from 1,000 to 5,000.
Third, Pinduoduo's resources, such as its tens of billions in subsidies, will provide enterprises with customized brand promotion programs.
Fourth, upgrade the cooperation model that helps foundry companies incubate their own brands into four new models, including OEM companies' own brand cultivation, well-known brand's sub-brand building, new brand support, and old domestic brands rebuilding.
The new brand plan's upgrade aims to form a combination of 'products + new brands + 700 million users.' Chen Qiu, vice president of Pinduoduo, claimed that Pinduoduo pays particular attention to foundries when launching new brand plans as a latecomer in the industry. The reason is that, compared with traditional e-commerce platforms such as Alibaba, Pinduoduo’s philosophy and model are very different. Unlike Taobao’s search-based shopping, Pinduoduo’s core play has always been the 'goods looking for people' model. To grasp Chinese consumers from the demand side, foundries and new brands are particularly important.
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