In a nutshell, PDD/Temu offers vast array of products at very low prices.
For Pinduoduo, they targeted lower-tier Chinese cities - in particular, lower income consumers in less urbanized areas.
Then, as China's economy struggled, they expanded into users from higher tier cities who were looking to trade down their spending - meaning users who were shifting their mindsets from buying luxury to buying practically.
Great business breakdown!
DoorDash reminds me a lot of PDD/Temu. The way the entered very mature markets by targeting under-served segment.
Thanks for reading! Oh interesting, will need to read up on them :)
I think Temu is the 2nd most downloaded app in the US?
What's their story?
In a nutshell, PDD/Temu offers vast array of products at very low prices.
For Pinduoduo, they targeted lower-tier Chinese cities - in particular, lower income consumers in less urbanized areas.
Then, as China's economy struggled, they expanded into users from higher tier cities who were looking to trade down their spending - meaning users who were shifting their mindsets from buying luxury to buying practically.
Thanks for the mini lesson!
You are most welcome Ved