Aug 20, 2019 (China Knowledge) - Japanese TV brand JVC has just set up a flagship store and released four customized products on China's e-commerce platform Pinduoduo (PDD), which are priced below the industry norm. More than 4,000 TV sets had been sold in 22 hours, and two other models were completely sold out.
In early July, JVC’s Chinese owner Shenzhen MTC and Pinduoduo signed a strategic cooperation agreement. Part of Pinduoduo’s client-to-manufacturing (C2M) initiative is for JVC and Pinduoduo to be able to communicate effectively in areas such user profile, pricing strategy, size parameters, and supply chain optimization so to provide more products of lower costs and higher quality,” said Deng Zuqin, JVC’s China head.
Besides the current cost cuts, Pinduoduo continues to provide subsidies for these four products of JVC, so these could be priced lower than the current level. Adopting similar operation and marketing strategy Pinduoduo plans to cooperate with 1,000 more such contract manufacturers to fit the preferences of its consumers.
Pinduoduo has been a platform known for its low-price strategy since its establishment. As of the first quarter, the e-commerce site had 443 million monthly active users. The company expects to retain existing users and attract new ones through investing in online and offline advertising campaigns and promotions.
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