PDD(US:PDD) Sou Hu Cai Jing·2026-01-10 08:42Core Viewpoint - The article discusses the price differences between Pinduoduo and Taobao, highlighting that Pinduoduo's lower prices stem from its distinct business model, which focuses on attracting consumers through low prices rather than charging sellers high fees [1][3][11]. Business Model Comparison - Pinduoduo operates on a model that minimizes seller costs, allowing for lower prices, while Taobao relies on seller fees, which increase product prices [3][11]. - Pinduoduo's revenue comes from advertising and data, rather than seller commissions, enabling it to encourage lower prices from merchants [3][4]. - The operational costs for sellers on Pinduoduo are significantly lower due to fewer required expenses compared to Taobao, where sellers often need to hire professional teams [8][9]. Supply Chain Efficiency - Pinduoduo emphasizes direct cooperation with factories, reducing intermediaries and thus lowering costs, while Taobao often involves multiple layers of distributors, increasing prices [4][11]. - The logistics approach on Pinduoduo is less demanding, allowing for cheaper shipping options, which further reduces overall costs for consumers [8][9]. Consumer Behavior and Expectations - Pinduoduo attracts sellers who prioritize high sales volume over brand building, leading to a willingness to accept lower profit margins [4][12]. - The perception of product quality on Pinduoduo is often comparable to that on Taobao, as many products may originate from the same factories, but pricing strategies differ [5][12]. Market Dynamics - The competition between Pinduoduo and Taobao reflects a shift in the e-commerce landscape, where efficiency and supply chain optimization are becoming more critical than merely increasing traffic [14]. - Taobao is adjusting its strategies to become more price-competitive in response to Pinduoduo's market presence, indicating a broader industry trend towards balancing price and quality [11][14].