Pinduoduo deepens digital transformation for agriculture by connecting millions of farmers to consumers
April 30 2021 - 8:00AM
Pinduoduo Inc., China’s largest agricultural platform, is deepening
its efforts to transform the way food is grown, transported and
sold by connecting millions of farmers directly to consumers.
Since its establishment in 2015, Pinduoduo has focused on
agriculture and has connected more than 12 million farmers directly
to its users, which numbered 788.4 million users as of the end of
last year. Last year, Pinduoduo recorded more than 270 billion yuan
($42 billion) in agriculture-related GMV, up from 136 billion yuan
in 2019.
Pinduoduo has been able to aggregate demand and generate large
volumes of orders for farmers by making recommendations to
consumers based on the company’s understanding of their shopping
preferences, the Nasdaq-listed company said in its annual 20-F
filing covering the 2020 financial year. By facilitating direct
sales by small-scale farmers to consumers, Pinduoduo helps the
growers to reduce their dependence on distributors and increase
their earnings, which can be reinvested in the farms and technology
to improve productivity. Consumers benefit from fresher and safer
produce at lower prices.
“This market we created for fresh produce will also enable the
logistics companies to optimize their procedures for delivering
fresh produce and reduce spoilage during the delivery process,
resulting in savings along the supply chain,” the company said in
the filing.Pinduoduo has gone from zero to almost 800 million
customers in just six years, making it one of the fastest-growing
consumer internet companies in the world. The company has described
its model as “Costco + Disney”, in reference to the combination of
value-for-money offerings and entertainment. It is unique among
other large internet companies to make digitizing the agriculture
industry a core, strategic priority.
In August 2020, Pinduoduo introduced Duo Duo Grocery, its
next-day pickup service, to help local farmers sell directly to
local consumers. Orders placed before 11 p.m. are fulfilled by
local farms and dropped off at designated collection points by 4
p.m. the following day, providing consumers a more economical
option to premium same-day delivery services.
To support its goal of becoming the world’s biggest grocer,
Pinduoduo is investing to build an agriculture-focused logistics
infrastructure that can ensure quality, reduce food waste, and cut
down delivery time. Reducing food spoilage is also in line with its
commitment to combat climate change, as global food loss accounts
for about 8% of total greenhouse gas emissions. In its 20-F filing,
Pinduoduo also described its efforts to develop human capital in
agriculture, a key to increasing the adoption of technology in the
industry.
Under its “Internet + Agriculture” strategy, Pinduoduo coached
farmers on setting up stores online, provided them with access to
end demand, and helped them to increase their household income. By
training young men and women from rural areas to become e-commerce
savvy “New Farmers”, many of them became champions for digital
inclusion, often catalyzing a multiplier effect and wealth creation
for their local communities.
Pinduoduo’s efforts in combating poverty through digital
inclusion were recognized by China’s central government in February
2021, where it was one of three technology companies commended for
their outstanding contributions to China’s poverty alleviation
drive. Pinduoduo will deepen its efforts to promote digital
inclusion of rural communities in 2021.
To promote the adoption of technology in the agriculture and
food system, the company is actively evaluating global investment
opportunities in areas including alternative proteins, food safety
and precision farming.
Last year, Pinduoduo co-organized a Smart Agriculture
Competition in which technology teams competed against expert
growers in a strawberry-growing competition, with the aim of
testing the applicability of advanced technology to traditional
agriculture.
About Pinduoduo Inc.
Pinduoduo operates China's largest agri-focused technology
platform, providing an online marketplace that connects millions of
agricultural producers with consumers across the country. A pioneer
of interactive commerce and the consumer-to-manufacturer model,
Pinduoduo aims to bring more businesses and people into the digital
economy so that local communities can benefit from the increased
productivity and convenience through new market opportunities.
For more information on Pinduoduo news and industry
trends, please visit our content hub
at http://stories.pinduoduo-global.com/.
For media enquiries, please contact us
at internationalmedia@pinduoduo.com
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