A Study of Pinduoduo's Strategy to Transform its Brand Image after Capturing the Sunken Market

Abstract

In the third and fourth-tier cities, a large number of people with lower incomes can not be met, a large number of tail merchants were Taobao, Jingdong and other platforms out. At the same time, as the city continues to develop, the cost of living, rent costs, logistics costs, etc. continue to rise, which also makes the production of some of the small goods of good quality and low price merchants gradually no living space. Pinduoduo found this market and built a corresponding platform for it, occupying the sinking market. But for Pinduoduo to achieve more growth, it is not only limited to the down market, but also to improve the brand image and product quality. This will not only achieve a greater competitive advantage in the competition of the sink market, but also help Pinduoduo to gain the stock of the middle and high-end market. Based on the perspective of Pinduoduo's competitive strategy, this study firstly elaborates the development overview and competitive landscape of Pinduoduo, then analyzes Pinduoduo's differentiated competitive strategy, finally analyzes its strengths and weaknesses as well as the opportunities and challenges it faces through SWOT, and finally gives some suggestions.