Notify me of follow-up comments by email. During the recent Singles Day campaign that took place in China in the first 11 days of November, the gross merchandise volume (GMV) for Alibaba, In fiscal 2020, the company’s gross merchandise volume stood at $1 trillion and accounted for almost 17% of total retail sales in the country. To see all exchange delays and terms of use, please see disclaimer. Your email address will not be published. Pinduoduo burst onto Alibaba’s radar screen with rapid revenue growth, profit metrics on a par with those of the market leader and a down-market strategy challenging Alibaba’s emphasis on higher-end products and consumers. Yesterday, PDD reported adjusted earnings of $0.05 per share compared to a loss of $0.22 per share in the prior-year period. It can be seen that e-commerce platform companies have gained a lot in 2019 and will continue to grow for some time. Alibaba and Pinduoduo are two companies that should attract growth investors. in the prior-year period. Hi guys, just wondering if any of you have any experience with selling or buying from Pinduoduo and have thoughts about ways in which the company is different to Taobao/Tmall? Analysts tracking the stock have a 12-month average target price of $338 for Alibaba, indicating an upside potential of 28% from current levels. However, Alibaba is trading at a lower valuation and is consistently profitable compared to PDD. Learn more here. The company lost 7 billion yuan last year and 4.1 billion in the first quarter of this year. Here are some highlights: With its 366 million monthly active users, Pinduoduo is a serious rival of Alibaba and Shares of another Chinese e-commerce company Pinduoduo (PDD) have gained 450% in just over two years, easily outpacing peers and the broader market. Thank you for this article I enjoyed reading 谢谢你. Have you written or provided any analysis on you opinions of vs PDD vs Ali? Year-to-date, BABA has gained 21.66%, versus a 12.07% rise in the benchmark S&P 500 index during the same period. annual active buyers reached 628.1 million, CHINA HEALTH MARKET: ALIBABA STRATEGICALLY POSITIONS ITSELF AS AI LEADER, PINDUODUO ECOMMERCE: AN OPPORTUNITY FOR SMALL BRANDS IN CHINA, THE BATTLE PINDUODUO VS JUHUASUAN (ALIBABA), 8 Platforms to Promote Your Business In China (update 2020). Feel be free to ask questions, I would enjoy to meet new people via this website. The e-commerce platforms represented by Juhuasuan have become the signature products of Alibaba group again. reported adjusted earnings of $0.05 per share compared to a loss of $0.22 per share. By 2020, Juhuasuan will become the number one product for Alibaba to crush its competitors. In the long run, “Ten billion subsidies” is a quick way to attract consumers in the early stage of the platform, but not a sustainable business model. if (mElmt) { In general, no opponent has been able to shake Alibaba’s position in the past two years. The stock in fact gained over 20% on November 12 after it posted stellar results for Q3. If the top listed Internet companies in China can be divided into consumer companies and content companies, then the market value of consumer companies such as Alibaba, JD, and Pinduoduo has increased significantly, while the market value of content companies such as Tencent, Baidu, NetEase, and Weibo has only increased slightly or even decreased. Nun korrigieren die Kurse von Alibaba, Tencent, und Pinduoduo nach ihren jüngsten Hochs. China Marketing Must-Know: Who are KOCs and why they matter? It has a market cap of over $700 billion and remains one of the top bets for growth investors due to several growth drivers. The company’s gross merchandise volume was up 73% year-over-year at $215 billion while sales rose by 89% to $2.1 billion, above Wall Street sales estimates of $1.86 billion in Q3. Dollar eingesammelt und will sich jetzt, nach den eindrucksvollen Quartalszahlen, nochmal bis zu 5,5 Mrd.Dollar holen: „The Company proposes to offer … primisElmt.setAttribute('src', s); Further, China remains one of the fastest-growing major economies in the world. Log in or sign up to leave a comment log in sign up. We come from different backgrounds and have different cultural views which make us the ideal international team to develop your interests in China. Alibaba, Tencent, und Pinduoduo: Darum sind China-Aktien heute unter Druck Das musste irgendwann kommen: Mehr als sieben Prozent geht es mit … Sort by. For investors with a lower risk appetite, Alibaba is one of the top long-term bets for 2021 and beyond. 2 Travel Stocks to BUY in December, 2 to AVOID. At this rate of development, by the end of 2020, Pinduoduo’s annual active buyers will almost equal Ali. var elmtInterval = setInterval(function() { There is no doubt that in terms of the number of brands and long-tail products, Pinduoduo cannot be compared with Ali in a short time. Alibaba has a fast-growing digital payments vertical and is one of the largest players in the public cloud space. All our Update & Tips about Business in China, Scan the Qr Code and get the best of on Wechat, Designed by Elegant Themes | Powered by WordPress, Oatly: Another Swedish Success Story in China. There are other types of existence that cannot be ignored, including the video-sharing social networking service providers like Kuaishou and Douyin who are also engaged now into live e-commerce, and the giant social platform WeChat is preparing its e-commerce. Pinduoduo even surpassed JD in total shoppers (though not revenue) last year, thanks to legions of shoppers teaming up on bulk purchases. Alibaba and Pinduoduo are two companies that should attract growth investors. mElmt = d.getElementById(b); This is very different from Alibaba’s platforms. Its Cloud business grew sales by at least 60% in each of the last two quarters, accounting for almost 8% of total sales. In China, a new battle for rural customers start, Alibaba VS pinduoduo. At the same time, it should also be noted that Pinduoduo’s rapid growth is at the cost of a huge deficit. About Juhuasuan Recently, Alibaba has relaunched Juhuasuan, as a way to prevent too many Ali users from turning into Pinduoduo users. Join thousands of investors who get the latest news, insights and top rated picks from! primisElmt.setAttribute('async','async'); mElmt.parentNode.insertBefore(primisElmt, mElmt.nextSibling); In Ali’s history, there have been countless battles, but it seems that no other year is like 2020: Taobao and Tmall have been attacked by Pinduoduo and JD; upstream traffic has been blocked by Kuaishou and Douyin. Aditya Raghunath is a financial journalist who writes about business, public equities, and personal finance. China is a rapidly growing consumer market with more companies throughout the world looking for ways to develop their marketing, branding and communication that is relevant to Chinese consumers. return clearInterval(elmtInterval); Pinduoduo currently has a serious platform operation problem: mature e-commerce users find that the Pinduoduo shopping experience is not very good, because they cannot ensure that the merchants will deliver goods on time and whether they can buy their desired products. Pinduoduo has experienced phenomenal growth through its pursuit of Alibaba, which had an unassailable lead in the market. 100% Upvoted. } Gentlemen marketing agency, a professional Chinese marketing expert. After Pinduoduo users become scale, the scope and role of subsidies will be reduced accordingly. no comments yet. I very much enjoyed yoru research and analysis. Your email address will not be published. For Pinduoduo, how to solve the problem of logistics, to better convert consumers into loyal customers, and to achieve stable long-term development is the next problem they need to solve. Alibaba and Pinduoduo are two companies that should attract growth investors. We are a Digital Marketing Agency based in Shanghai. Here we look at two such high-growth ecommerce companies in China to see which stock is a better buy right now. Alibaba vs. Baidu: Which Chinese Stock is a Better Buy.