Sep 14, 2018 (China Knowledge) - Chinese e-commerce company Pinduoduo Inc <PDD:NASDAQ> shares price increased by 30%, closing at USD 29.96 yersterday after endorsed with a buy rating of price target at USD 31.90, by Goldman Sachs.
Since its listing on 25 July, negative news surrounding the Chinese e-commerce giant has caused the shares price to fall below IPO price of USD 19. Since then, Pinduoduo has been struggling to address complaints and concerns from retailers in combating counterfeit goods on its platform by aligning itself with legitimate brands and highlight their flagship stores.
Pinduoduo is the world fastest-growing internet company based on both revenue and growth in 2018. The company surpassed a Gross Merchandise Value (GMV) of RMB 100 billion in 2 years in 2017 compared to 5 years for Alibaba and 10 years for JD. It now has 343.6 million active buyers with an annual GMV of RMB 262.1 billion.
On September 11, Pinduoduo’s partnership with Netease Yanxuan has been highlighted by an app update. Both companies have similar business model where they source products directly from the manufacturers and sell to customers at a lower price. However, Netease Yanxuan has managed to build a stronger reputation from lower-cost quality products than Pinduoduo.
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