Looking at high-quality development from the 2024 financial report, Pinduoduo (PDD.US) Experience: Exporting New Quality Supply to Build a Healthy Ecosystem

The macroeconomy is progressing steadily. In the new stage of economic development, consumption is not only related to people's yearning for a better life, but “evolution” has also become an important engine driving economic growth. In the critical time window for the government to vigorously boost consumption, the latest trends of representative companies in related fields are naturally worth paying close attention to.

At the end of March, listed companies were intensively disclosing their 2024 results. On March 20, Pinduoduo (PDD.US), which has fully switched to high-quality development, released financial results for the fourth quarter and full year of 2024 ending December 31. Using Pinduoduo's financial reports, we may be able to take a glimpse of how Pinduoduo actually leverages the advantages of the platform. While increasing the protection of merchant rights and interests, it also continues to benefit the beautiful lives of consumers, build a win-win ecosystem for users, merchants, and platforms, and “add fuel” to social consumption.

Looking at Pinduoduo's experience in high-quality development from financial reports

In 2024, Pinduoduo will comprehensively focus on high-quality development strategies, continue to make efforts in terms of platform ecology and industry depth, and implement multiple measures of “reduction, support, and governance” into all aspects of platform operation, merchant management, industrial transformation, and logistics upgrades to promote the sustainable development of the platform and industrial ecosystem.

“Over the past few quarters, our firm investment in ecological construction has helped the platform to better cope with changes in consumption, industrial transformation, and industry competition, leading the e-commerce industry into a new stage of high-quality development.” Chen Lei, chairman and co-CEO of Pinduoduo Group, said.

In terms of expansion, in order to implement high-quality development, Pinduoduo has successively implemented a series of new measures to benefit business, such as the “10 billion reduction,” “e-commerce going west,” and “support plan for new quality merchants.”

According to information, the “10 billion dollar reduction” has improved quality and efficiency for over 10 million merchants, and the “return of promotion service fees” alone has reduced costs by billions of dollars per year; “e-commerce moving west” has effectively led to double-digit year-on-year growth in order volume in the western region and achieved “full free shipping” e-commerce inclusiveness for nearly 100 million consumers in remote areas; and the first batch of “New Quality Merchant Support Program” projects have helped thousands of agricultural and animal husbandry production areas and industrial clusters gradually shift to the “new quality supply” stage of development.

In the fourth quarter of last year, Pinduoduo's “New Quality Merchant Support Program” successively entered regions such as Lu'an Wedding Dress, Huidong Women's Shoes, Qingpu Mother and Baby, Quanzhou Diapers, Inner Mongolia yogurt cake, Linxia yak, Foshan pistachios, Guangxi crispy kumquats, etc., to provide full product, marketing, operation and supply chain support to local merchants, cultivate a number of new quality merchants with product and technological innovation capabilities, and drive the industrial belt to break through the development malaise of “homogenized competition”. Gradually complete the transformation and upgrading.

I turned my attention to Huidong County in Guangdong Province. The area used to be a leader in the domestic women's shoe industry, but it gradually fell to the brink of shutdown due to market changes. Last winter, Pinduoduo and local merchants relied on the platform's data analysis capabilities to develop velvet Birkenshoes, which are more popular among female users, and transformed the traditional women's shoe supply chain. A medium-sized shoe factory can ship 15,000 pairs in a single day, successfully embarking on a “new quality supply” transformation path and saving hundreds of thousands of industrial workers.

There are many more cases like this, and it is not difficult to summarize a rule through these cases: by going deep into major industrial clusters across the country, Pinduoduo has successfully supported a number of new quality merchants and new quality brands, creating a replicable path with deep characteristics of Pinduoduo for industrial transformation and upgrading.

Also, it's worth mentioning that high-quality supply often creates effective demand. Judging from Pinduoduo's past practice, this is true. By exporting “new quality supply”, Pinduoduo has further met the new needs of consumers. Take last year's Double Eleven as an example. The Pinduoduo platform launched a number of “super doubling” campaigns to help “supply new quality” directly connect to the national market. The total number of orders in the first two rounds alone exceeded 61 million.

During the Spring Festival, driven by “e-commerce moving west,” “New Year's goods moving west, specialty products going east” became a new trend. According to data from the “2025 Dinner Report” released by Pinduoduo, orders for dumplings, seafood, nuts, etc. in the western region have all doubled, and specialties such as lamb, yak, and yogurt cake from Gansu, Inner Mongolia and other places are also entering the tables of consumers in the eastern region at an accelerated pace.

Looking at Pinduoduo's “balance technique” from the perspective of a healthy ecology where many parties win together

The clock is set to 2025. For the purpose of increasing the protection of merchant rights, Pinduoduo set up the “Merchant Rights Protection Committee” soon after the beginning of the year. It should be pointed out that the committee is personally led by Zhao Jiazhen, executive director and co-CEO of Pinduoduo Group, to coordinate the various teams of the platform, comprehensively study merchant needs, gather feedback from merchants, optimize the merchant's business experience and service mechanism, and further improve the platform's ecosystem.

“Under the guidance of high-quality development, the Chamber of Commerce and Insurance will continue to focus on protecting the rights and interests of merchants, hold regular symposiums to keep abreast of the development needs of merchants and industries, continue to increase its efforts to benefit businesses, continuously improve the platform's service mechanism, and promote the healthy development of merchants and industries.” Zhao Jiazhen said.

Since the establishment of the “Commercial Insurance Association”, Pinduoduo has successively launched a number of new initiatives such as “Abnormal Order Warning” and “Low Price Risk Warning”, and launched an upgraded service to promote “net merchant transactions” to provide merchants with more refined data support and continue to help merchants improve their production ratio.

On March 5, the “Commercial Insurance Association” held its first merchant symposium. Dozens of business representatives from various industries participated in the conference. After thorough communication with merchants, the committee introduced four major upgrade measures, including a “normalized exchange mechanism” and “warning function for illegal operations,” to continue to increase the protection of the rights and interests of merchants.

“In the coming year, high-quality development will remain the platform's consistent strategic focus. We will continue to invest in the long term around the healthy development of merchants and industries, continuously strengthen the protection of merchant rights and interests, make every effort to build a win-win e-commerce ecosystem, and continue to promote the high-quality development of the platform and industry.” Chen Lei said.

As a platform that started with agricultural products, Pinduoduo has also continued to invest in fields such as agricultural research technology, agricultural supply chains, and new agricultural business training for a long time. According to the “Research Report on High-Quality E-commerce Ecological Development and Employment Promotion” recently released by the University of the Chinese Academy of Social Sciences, Pinduoduo has so far encouraged more than 300,000 new farmers to return to their hometowns to start businesses through initiatives such as the “Duoduo Classroom” and “Nongyun Campaign,” helping more than 20 million agricultural producers participate in the digital economy.

In addition, the “Report” also points out that the number of merchants on the Pinduoduo platform has reached 14.2 million, and the total number of jobs stimulated domestically has reached 55.321 million.

In terms of agricultural research science and technology, the “Duoduo Agricultural Research Competition,” “Global Agricultural Maker Competition,” “Science and Technology Institute,” and “Agricultural Research Fund,” which Pinduoduo has invested in for a long time, also gained a lot last year. Among them, the 6 finalists of the “4th Duoduo Agricultural Research Competition” made significant breakthroughs in yield, total production, efficiency, energy consumption, etc. using cutting-edge technology, and carried out practical applications in market-based exploration.

Looking forward to the future at this point, it is foreseeable that Pinduoduo will continue to implement a high-quality development strategy with the “nail nail spirit”, give full play to the digital advantages of the platform, expand the upward scale of “new quality supply”, continue to benefit the beautiful lives of consumers, and make every effort to build a win-win ecosystem for users, merchants and platforms. In the future, I believe that Pinduoduo will also contribute more strength to boosting social consumption and revitalizing the economic vitality of various regions.