Pinduoduo's "Trillion-Yuan Support" Plan: A Three-Year, 100 Billion Yuan Investment to Build a Multi-Win Business Ecosystem

Tech 2025-04-03 14:41:29 Source: Network

Pinduoduo's "Trillion-Yuan Support" Plan: A Three-Year, 100 Billion Yuan Investment to Build a Multi-Win Business EcosystemOn April 3, 2025, Pinduoduo's Merchant Rights Protection Committee (hereinafter referred to as "Merchant Protection Committee") officially announced the launch of its "Trillion-Yuan Support" plan. This plan will invest over 100 billion yuan (approximately US$14 billion) in funds and traffic resources over the next three years to comprehensively support platform merchants in their high-quality transformation and upgrading, creating a win-win-win business ecosystem for users, merchants, and the platform

On April 3, 2025, Pinduoduo's Merchant Rights Protection Committee (hereinafter referred to as "Merchant Protection Committee") officially announced the launch of its "Trillion-Yuan Support" plan. This plan will invest over 100 billion yuan (approximately US$14 billion) in funds and traffic resources over the next three years to comprehensively support platform merchants in their high-quality transformation and upgrading, creating a win-win-win business ecosystem for users, merchants, and the platform. This is the latest in a series of significant support strategies from Pinduoduo, following initiatives such as the 2024 "10 Billion Yuan Reduction" program, "E-commerce Westward Expansion," and the "New Quality Merchant Support Plan," representing an unprecedented level of resource commitment.

The "Trillion-Yuan Support" plan is personally led by Zhao Jiazhen, Executive Director and Co-CEO of Pinduoduo Group. According to Zhao, the plan is based on the significant achievements of Pinduoduo's long-term commitment to high-quality development and a thorough analysis of current market opportunities. Over the past few months, the Pinduoduo team has summarized the experience gained from previous initiatives like the "10 Billion Yuan Reduction" program and extensively solicited opinions and suggestions from merchant representatives across various categories, industry experts, and other stakeholders. This marks a new phase in Pinduoduo's high-quality development strategy, moving beyond "reducing burdens and costs" for merchants to provide comprehensive support to help them "expand orders and increase revenue."

Zhao emphasized: "'Trillion-Yuan Support' represents a genuine financial investment; we don't just make slogans, we deliver results. We are unwavering in our commitment to high-quality development, consistently prioritizing the interests of consumers and merchants over those of the platform. The platform is willing to make sacrifices and tackle difficult challenges. From the company to each department and each employee, we must work together, and this is key to Pinduoduo's ability to break new ground in the coming years."

Strategic Upgrade from "10 Billion Yuan Reduction" to "Trillion-Yuan Support"

In April 2023, Zhao Jiazhen was appointed Executive Director and Co-CEO of Pinduoduo Group, subsequently launching a high-quality development strategy. This signaled Pinduoduo's transition to a new phase of wholeheartedly embracing high-quality development, prioritizing quality improvement. Over the past two years, Pinduoduo has steadfastly implemented this strategy, continuously striving for improvement in platform ecology and industrial depth. Measures focused on "reduction, support, and governance" have been integrated into various aspects of platform operations, merchant management, industrial transformation, and logistics upgrades, effectively promoting the sustainable development of the platform and the industry ecosystem.

Since the second half of 2024, Pinduoduo has successively launched a series of new merchant benefit initiatives, including the "10 Billion Yuan Reduction," "E-commerce Westward Expansion," and the "New Quality Merchant Support Plan." The "10 Billion Yuan Reduction" program has helped over ten million merchants improve efficiency, with the "promotion service fee refund" alone saving merchants billions of yuan annually. "E-commerce Westward Expansion" has driven double-digit year-on-year growth in order volume in western regions and provided "free shipping nationwide" for nearly 100 million consumers in remote areas. The "New Quality Merchant Support Plan" has already helped thousands of agricultural and pastoral production areas and industrial clusters transition to "new quality supply."

Pinduoduo

Pinduoduo's Q4 2024 financial report shows that the "New Quality Merchant Support Plan" has been implemented in areas such as Lu'an wedding dresses, Huizhou women's shoes, Qingpu maternal and infant products, Inner Mongolia yogurt cakes, Linxia yak beef, Foshan pistachios, and Guangxi honey tangerines. It provides full-chain support for local merchants in product development, marketing, operations, and supply chains, fostering a group of new quality merchants with product and technological innovation capabilities. Through the "leading goose effect" of these new quality merchants, these industrial clusters have successfully overcome the bottleneck of "homogeneous competition" and gradually completed their transformation and upgrading.

A kumquat merchant from Rong'an County, Guangxi, estimates an increase of tens of thousands of yuan in monthly revenue after the platform fully opened up merchant appeal rights. A herbal tea merchant from Anhui reported an increase of nearly 400,000 yuan annually just from the platform's promotion fee refund. Huizhou County in Guangdong Province, once a leader in China's women's footwear industry, had stagnated due to market changes. In winter 2024, Pinduoduo collaborated with local merchants, leveraging the platform's data analysis capabilities to develop fur-lined Birkenstock-style shoes that are more popular with female users and to revamp the traditional women's footwear supply chain. A medium-sized shoe factory saw its daily output reach 15,000 pairs, successfully embarking on a "new quality supply" transformation path and saving tens of thousands of industrial jobs.

Zhao Jiazhen stated that the effectiveness of the "10 Billion Yuan Reduction" and "New Quality Merchant Support Plan" has boosted Pinduoduo's confidence. The high-quality development strategy is entering its harvest phase, with the platform and industrial ecosystem's benefits continuously released, providing universal benefits to both supply and demand sides. With the upgrade from "10 Billion Yuan Reduction" to "Trillion-Yuan Support," the platforms investment in "new quality supply" will further increase, the number of supported industrial clusters will expand, and support for new quality merchants will extend from leading businesses to mid-tier players, allowing more high-quality merchants to share the benefits of the platform's high-quality development.

Building a Multi-Win Business Ecosystem

While expanding the scale of "new quality supply" from industrial clusters, Pinduoduo will also actively respond to national policy calls, further increasing support for agricultural and sideline products, launching special programs such as "Duoduo Good Specialties," and going deep into agricultural product regions. It will fully leverage the platform's digital advantages to help national "local specialties" achieve omnichannel distribution online and offline, enhance brand awareness and premium pricing capabilities, promote healthy industrial development, increase farmers' income, and contribute to rural revitalization.

Supply-side transformation has also driven further satisfaction on the demand side. During Double 11 2024, Pinduoduo repeatedly launched the "Super Double Bonus" event, supporting "new quality supply" to directly connect with the national market. The cumulative order volume in the first two rounds exceeded 61 million. During the Spring Festival, "E-commerce Westward Expansion" promoted the new trend of "Year's goods westward, specialties eastward." Data from Pinduoduo's "2025 New Year's Eve Dinner Report" shows that orders for dumplings, seafood, and nuts in western regions have more than doubled, and local specialties such as mutton, yak beef, and yogurt cakes from Gansu and Inner Mongolia are entering the dining tables of consumers in eastern regions.

Pinduoduo

Therefore, in addition to increasing investment in "new quality supply" and "Duoduo Good Specialties," the "Trillion-Yuan Support" plan will also focus on the demand side. Zhao revealed that Pinduoduo will further explore innovative platform direct subsidy models on the consumer side, fully guaranteeing merchant rights and costs, benchmarking many categories with the "national subsidy" price standard to comprehensively benefit consumers, stimulate consumer demand and vitality, and create a better operating environment for merchants to "expand orders and increase revenue." The "Trillion-Yuan Support" plan will also increase subsidies for cross-border small and medium-sized merchants, helping them cope with the challenges posed by changes in international tariffs, stabilize production, and reduce costs and increase efficiency.

Zhao stated that the core goal of Pinduoduo's high-quality development strategy is to build a business ecosystem where users, merchants, and the platform all win. Only a win-win ecosystem can better leverage the social effectiveness of platform-based companies and assume more social responsibilities. "We will uphold the principle of 'consumers and merchants first, then the platform' throughout the 'Trillion-Yuan Support' plan and implement it throughout the company. We are determined to bear the costs and risks of platform merchants' transformation and development, and we have the strategic determination to cope with the uncertainties of the external market environment. We will prioritize the stable development and healthy profits of small and medium-sized manufacturers and the rights and interests of consumers, and ultimately, the platform ecosystem will undergo a high-quality transformation."

Hu Qimu, Deputy Secretary-General of the China Digital-Real Fusion 50 Person Forum and Chief Researcher of the Digital Economy Think Tank, points out that social reproduction involves four links: production, distribution, circulation, and consumption. The production subject is the industrial sector, and the consumption subject is the broad consumer base. E-commerce platforms, to some extent, simultaneously undertake the functions of circulation and distribution. Whether subsidizing consumers or merchants, the essence is the issue of value allocation. In the development process of the e-commerce industry, the platform's profit distribution is not static. In some phases, the platform will

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