Pinduoduo's "New Quality Supply" Strategy: Deep Integration of Merchant Rights Protection and High-Quality Development of Industrial Clusters

Tech 2025-01-08 19:46:50 Source: Network

Pinduoduo's "New Quality Supply" Strategy: Deep Integration of Merchant Rights Protection and High-Quality Development of Industrial ClustersOn January 8, 2024, Pinduoduo announced the establishment of a "Merchant Rights Protection Committee," chaired by Zhao Jiazhen, Executive Director and Co-CEO of Pinduoduo Group. This signifies a significant elevation in the platform's commitment to protecting merchant rights

On January 8, 2024, Pinduoduo announced the establishment of a "Merchant Rights Protection Committee," chaired by Zhao Jiazhen, Executive Director and Co-CEO of Pinduoduo Group. This signifies a significant elevation in the platform's commitment to protecting merchant rights. The committee will integrate resources from various teams, including platform governance, recruitment, customer service, technology, and product development, to comprehensively study merchant needs, gather feedback, optimize the merchant experience, and improve service mechanisms. The ultimate goal is to continuously enhance merchant satisfaction and further upgrade the platform's high-quality development strategy. This initiative is a crucial component of Pinduoduo's "New Quality Supply" strategy, aiming to promote the common prosperity of the platform, merchants, and industrial clusters through multi-dimensional empowerment.

Pinduoduo's "10 Billion Yuan Reduction" Plan: Lowering Costs, Stimulating Vitality

Since September 2024, Pinduoduo has intensively implemented a comprehensive "10 Billion Yuan Reduction" plan, encompassing various aspects such as technology service fees, promotion service fees, pay-later service fees, merchant deposit guarantees, and withdrawal thresholds. This initiative comprehensively lowers merchants' operating costs. Many agricultural product, national brand, and industrial cluster merchants have saved hundreds of thousands of yuan annually just from the return of promotion service fees. This measure not only saves merchants significant funds but also injects vitality and space into the transformation and upgrading of industrial clusters, encouraging merchants to actively participate in market competition.

"E-commerce Westward Expansion" Plan: Empowering the West, Promoting Regional Coordinated Development

To bring greater affordability to users in remote western regions, Pinduoduo is vigorously promoting its "E-commerce Westward Expansion" plan. The platform shoulders the logistics transfer fees for orders to remote areas, completely waiving these costs for merchants. This significantly reduces the express delivery costs for merchants shipping to remote areas, ushering in a new era of "free shipping nationwide" for consumers in western China. Since the platform waived remote logistics transfer fees, express delivery costs for agricultural products, fresh produce, and daily necessities have decreased by up to 70%, significantly stimulating merchants' enthusiasm for expanding into the western market. The number of express delivery orders in western regions has shown a significant increase, strongly promoting the rapid development of e-commerce supporting facilities such as logistics warehousing and express delivery stations. This also creates new opportunities for "goods flowing eastward" from the west, further stimulating economic vitality between eastern and western regions and driving regional economic coordinated development.

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"New Quality Merchant Support Plan": 10 Billion Yuan in Resources, Empowering Industrial Upgrades

In addition to fee reductions, the launch of the "New Quality Merchant Support Plan" demonstrates Pinduoduo's firm commitment to industrial upgrading. This plan invests 10 billion yuan in resources to select new merchants and brands with product and technological innovation capabilities, providing full-chain support for product development, marketing, operations, and supply chains. Currently, the "New Quality Merchant Support Plan" has extended to various industrial clusters, including diapers in Quanzhou, Birkenstock-style shoes in Huizhou, makeup brushes in Cangzhou, small home appliances in Cixi, false eyelashes in Pingdu, nail extensions in Donghai, herbal teas in Bozhou, and wedding dresses in Lu'an. Through the platform's digital technologies, it helps local merchants transition from primary processing to deep processing and from unbranded products to new quality brands, leading industrial clusters to embrace high-quality development.

Huizhou Women's Footwear Industry Transformation and Upgrading: Case Study

Huizhou County in Guangdong Province boasts over 6,000 shoe factories, making it a renowned women's footwear industrial cluster in China and globally. In recent years, many small and medium-sized factories have struggled due to factors such as reduced exports. Since 2024, many local merchants have sought transformation through Pinduoduo. With the support of the "10 Billion Yuan Reduction" and "New Quality Merchant Support" plans, merchants' new products, such as Birkenstock-style shoes, have achieved monthly sales of tens of thousands of pairs, with factory workers earning over 10,000 yuan per month. Currently, over 50% of factories in the area have added or switched to producing Birkenstock-style shoes, and some leading merchants have achieved brand development, driving rapid expansion of the industrial supply chain. A cooperating leather material factory added seven leather-cutting machines and over ten workers, achieving a daily output of 15,000 pairs of Birkenstock-style shoes, successfully overcoming difficulties and achieving industrial upgrading. The transformation and upgrading of the Huizhou women's footwear industry fully demonstrates the practical effectiveness of Pinduoduo's "New Quality Supply" strategy.

Booming Development of the Cosmetics Industry Cluster: Diversified Development Model

In cosmetics industry clusters such as Pingdu in Shandong, Cangzhou in Hebei, and Donghai in Jiangsu, Pinduoduo has provided comprehensive support for categories such as false eyelashes, nail extensions, and makeup brushes. Many merchants have leveraged the platform to identify new needs and develop new products. A single hit product can achieve over one million units in sales, cumulatively supporting hundreds of thousands of mothers to find employment at home. The local industry scale is expanding continuously, rapidly growing into a "10-billion-yuan industry cluster." These cases demonstrate the positive role of the Pinduoduo platform in helping industrial clusters achieve diversified development and promote local employment.

Expert Interpretation: The Significance of Pinduoduo's "New Quality Supply" Strategy

Li Mingtao, a member of the National E-commerce Demonstration City Expert Committee, analyzes that the "New Quality Supply" strategy, through comprehensive platform empowerment, supports a group of merchants with innovation capabilities, fostering an industrial atmosphere that encourages innovation, quality, and branding. This not only meets the diverse needs of new consumption but also helps industrial cluster merchants to differentiate themselves from price wars, creating a demonstration effect and providing a reference for other e-commerce platforms.

Merchant Rights Protection Upgrade: Building a Win-Win Platform Ecosystem

In addition to supporting "New Quality Supply," Pinduoduo has comprehensively optimized merchant rights protection since the second half of 2024. The platform has upgraded its merchant after-sales service system, removing restrictions on merchant appeals. It fully supports merchants in appealing against abnormal orders, malicious complaints, and orders with negative consumer experiences. Successful appeals result in compensation from the platform. Simultaneously, the platform has introduced several improvements for "refund only" issues across user, merchant, and operational sides, including improving internal tagging mechanisms, restricting malicious users, providing preferential treatment to merchants with high credit scores, and reasonably handling and guiding order disputes. These measures effectively protect merchant rights, enhance trust in the platform, and promote the healthy development of the platform ecosystem. The launch of the "low-price risk warning" function also ensures a fair competitive environment, preventing malicious price competition.

Case Studies of Quanzhou Diaper Merchants and Rong'an Kumquat Merchants: Real Benefits

After the platform opened up merchant after-sales appeal rights, a mid-sized Quanzhou diaper merchant calculated that the upgraded after-sales system indirectly increased company revenue, raising the gross profit margin by 1-2 percentage points. "It's like the platform covered the extra costs of improving our products," they said. In Rong'an County in northern Guangxi, a kumquat merchant also noticed the platform's support for merchant after-sales appeals. She estimated that the platform's full opening of merchant after-sales appeal rights would increase monthly revenue by tens of thousands of yuan. "These new platform policies are like a shot in the arm, giving us more motivation to increase investment in warehouses and cold chain facilities and sell more honey-sweet kumquats," she said. These cases vividly illustrate the tangible effectiveness of Pinduoduo's merchant rights protection measures.

Pinduoduo's Future Development Strategy: Continuously Driving High-Quality Development of the Platform and Industry

Zhao Jiazhen stated, "In 2025, the platform will comprehensively upgrade its high-quality development strategy. The healthy development of merchants and industries will be the focus of the next phase of work. We will actively fulfill our responsibilities as a platform, while continuously protecting consumer rights, we will strengthen merchant rights protection, striving to build a win-win e-commerce ecosystem for merchants, consumers, and society, and continuously promote the high-quality development of the platform and the industry." This demonstrates Pinduoduo's continued focus on merchant rights and placing merchant and industry development at the core of its platform development strategy.

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