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US TikTok Frenzy Forces China's PinduoDuo's Hand In US Expansion Plans

Published 22/08/2022, 15:49
© Reuters.  US TikTok Frenzy Forces China's PinduoDuo's Hand In US Expansion Plans
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  • One of China’s biggest e-commerce operators Pinduoduo Inc (NASDAQ: PDD), is braced to enter the North American market in its first cross-border expansion, Bloomberg reports.
  • Pinduoduo chased new growth avenues amid the economic slowdown, following in the footsteps of successful international ventures like Shein and AliExpress.
  • Pinduoduo, with an annual active user base of more than 880 million, prepared its merchant partners for the move.
  • Also Read: Chinese Firms Flock To Switzerland Exchanges Amid U.S. And Domestic Crackdown
  • Pinduoduo held a 13% share of Chinese online retail and has recently curtailed its heavy investment in online groceries, seen as the most promising new outlet for growth in the country.
  • As it adopts cost-control measures, the U.S. market offers an attractive outlet for exploiting its infrastructure and merchant network.
  • Pinduoduo aims to clock a 2.5% revenue growth for the second quarter.
  • ByteDance Ltd-owned TikTok enjoyed massive success in the U.S. at the cost of Meta Platforms Inc (NASDAQ: META) Facebook (NASDAQ:META).
  • Alphabet (NASDAQ:GOOGL) Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) and Amazon.com Inc (NASDAQ: NASDAQ:AMZN) have also started emulating TikTok to grow their subscriber base.
  • Market leader Alibaba (NYSE:BABA) Group Holding Ltd (NYSE: BABA), which runs AliExpress, registered its first-ever sales squeeze during the same period.
  • Price Action: PDD shares traded higher by 6.48% at $48.73 on the last check Monday.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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