The popularity of online business has risen all over China today. Just when everyone thought Alibaba and JD.com held China's e-commerce market, a dark horse appeared and played a great role in the field of e-commerce.
On July 26, Pinduoduo, an online store, was reported to increase by more than 40% on its first trading day, opening at $19 per American Depositary Share and closing at $26.7 per ADS. Its performance has made Pinduoduo one of top Chinese Internet tech companies like Alibaba, Baidu, JD.com and NetEase. With the Pinduoduo App, people can now buy things at lower prices if they successfully ask friends to buy the same things. There are also free gifts and coupons for getting friends to follow Pinduoduo on social media. The success of Pinduoduo's first appearance suggested the increasing confidence of businessmen in its social e-commerce business model.
However, complaints follow. Some people say that products sold in Pinduoduo are not real or in bad qualities. It has thrown Pinduoduo into the center of a media storm recently. In the face of the problem, Pinduoduo had a meeting in Shanghai on July 31, making it clear that they would make efforts to improve their qualities and services and that there would be no more things in bad qualities sold in Pinduoduo soon.
Michael Zakkonv, vice president of a consulting firm, said, "In the past, one of the reasons why Pinduoduo was able to grow so quickly was that the requirements of products on the app are not so strict as they are on JD.com or Tmall." "If the low requirements continue, it will lead to a bad future. Pinduoduo must solve the problem as soon as possible," he added.
