Pinduoduo is one of the fastest - growing consumer internet companies in China , achieving close to 800 million dynamic emptor in just six years . It is also the res publica ’s biggest agriculture platform , handling some $ 42 billion of Department of Agriculture edict in 2020 . It has now place sights on becoming the world ’s biggest grocer .
Chen Lei , the Chairman and CEO of Pinduoduo , is swear on the remain blurring of boundaries between the online and offline universe to open up new opportunities . So sure-footed is Chen that the wandering net will transmute the way people interact and behave , that when Pinduoduo started in 2015 the team build a mobile - only technology platform .
His judgement has proven right so far . The surge in online grocery shopping is one recent example . In China , shopping for groceries at traditional wet market is an entrenched substance abuse . Households would do their shopping day by day , buying just what they postulate for the day or next couple of days . That changed with Covid-19 as shopping in crowded markets became a possible health chance .
The lockdowns and subsequent changes to daily routine have pushed more consumer in China to put grocery store through wandering apps . Some analysts estimate the online grocery marketplace could be worth more than $ 120 billion by 2023 .
To cater to this raw need for quick and affordable food market , Pinduoduo introduced Duo Duo Grocery , a next - day service that offers a curated list of produce and groceries from local farms and suppliers to consumers in the same area . consumer commit their parliamentary law through the Pinduoduo wandering app before 11 pm and pick up their orders after 4 necropsy the next day at collection point located near their homes . The whole process shortens the time for green groceries to hit from farm to table from a few days to less than 24 60 minutes .
“ We saw six eld ago that Mobile River is the only way to go . Therefore , we are the only major consumer internet company in the world that is mobile only . The mobile internet basically transforms the way humans interact with each other , ” said Chen , who was the chief architect of Pinduoduo ’s mobile platform . “ This peregrine revolution is now shoot down the bulwark between the physical and digital worlds . Being a mobile - only production in this new age , we are well - placed to gain from the opportunities thrown up by each behavioural modification . ”
“ One such variety sweep the worldly concern is agriculture and grocery . Pinduoduo pop out with agricultural product , with the vision of offering consumers the “ Costco + Disney ” experience of more economy and more fun , ” he said . “ We are now the largest agriculture weapons platform in China and we go for that Pinduoduo can one day become the large grocer in the world . ”
To accomplish the finish of becoming the world ’s largest grocer , Pinduoduo is investing in build an agriculture - focused logistics infrastructure that it sees as a stumbling block to contact two central and contradictory consumer demands : swiftness and cost . In other words , consumers want both quick rescue but also depressed prices . Most e - commerce platforms , include Amazon , commit extra for expedited shipping .
An additional problem is that the current express delivery logistics system in China is design by and large to handle hardy manufactured goods , which can withstand rougher handling and days on the road , often under abrasive weather condition conditions . smart green groceries fare much sorry under such treatment and spoiling charge per unit are much higher , especially during the summer month .
Pinduoduo catch the solution as an agriculture - pore logistics infrastructure that is suited to handling slight spoilable . Another important part of the equation is contract the time from farm to board , which is achieved by Pinduoduo ’s proprietary engineering in predicting and match local provision with consumer demand . The more accurately Pinduoduo can nail what is available in terms of provision , and match it with nearby demand , the less sentence the produce drop hit the customer , lead in less spoilage and deterioration in quality .
There ’s an add reward in this poser for farmers who produce leafy greens and other fragile farm goods . Local - to - local commerce has the voltage to put these Fannie Merritt Farmer closer to consumer , giving them an added option to selling solely to wholesale buyers like supermarket . By polish off the inefficiencies from the supplying range of mountains , farmer stand to pull in more for their toil , while consumers carry through on their grocery bills .
