![]() ![]() by working at factories), and only returning home once their crops are ripe for harvest. However, many Chinese rural area residents typically farm as a side-job, by planting crops that require less regular maintenance so that they can migrate to work in larger cities to earn more during growing season (e.g. Pinduoduo is known for being a key pioneer of the C2M model in China's e-commerce market, with the company having launched business initiatives such as the New Brand Initiative to aid manufacturers in developing their own brand for goods that have high consumer demand, or 1P Direct Selling to contract with manufacturers to produce niche products that have substantial consumer demand but currently lack supply (see Part 1).Īs of January 2021, it is estimated that 500 million out of China's 1.4 billion population reside in rural areas, of which an approximate 250 million to 270 million are engaged in farming-related work. The C2M model is defined as a business model where consumers make purchases directly from manufacturers (or in this case, agricultural producers) rather than going through layers of intermediaries, while the e-commerce platform facilitating these direct transactions can accumulate, aggregate and analyse consumer spending data in order to provide manufacturers (or producers) with useful feedback on how they can better tailor products to meet consumer needs. Pinduoduo's AgriTech contribution at the downstream level is essentially an extension of its traditional consumer-to-manufacturer (C2M) e-commerce model. ![]() We point out that management does not disclose the overlap between the general Pinduoduo platform and Duo Duo Grocery, including the specific number of Duo Duo Grocery farmers that are also regular merchants on the Pinduoduo platform, or the total GMV constituted by Duo Duo Grocery. The idea behind Duo Duo Grocery is to connect consumers with local farmers who can supply fresh fruits and vegetables on a daily basis, with Duo Duo Grocery having operations in over 300 Chinese cities as of the end of Q1 2021 and Pinduoduo as a whole connecting more than 16 million farmers to consumers as of the end of Q2 2021. Pinduoduo's biggest contribution at this level is the launch of Duo Duo Grocery (also called Duo Duo Maicai - Chinese name: 多多买菜) (see Part 1), which was established in August 2020 to circumvent the difficulties of transporting large volumes of fresh produce that can perish or get damaged easily in the transportation process. At the downstream level, Pinduoduo facilitates the direct selling of agricultural products from farmers to end consumers, and also provides training to farmers on how to operate an online agriculture business. ![]()
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