Chinese e-commerce platform Pinduoduo and household appliance giant GOME Retail Holdings will hold a Super Brand Day on March 31, with plans to give away 500 million yuan ($70.5 million) worth of incentives in an effort to promote a rebound in domestic consumption.
The promotion will begin at midnight on March 31 and involve more than 6,000 items across 10 product categories, including household electronics, computers and related products, beauty and cosmetics, and general merchandise, according to a joint statement by the two companies on Friday. The incentives will take the form of price discounts, consumption subsidies and passing on savings, according to the statement.
China has gradually lifted quarantine restrictions after it was able to get the COVID-19 outbreak under control. The government has rolled out measures to promote domestic consumption, which has become increasingly important as global trade slows due to the spread the pandemic.
“We are responding to the government’s call to speed up the rebound in consumption, and that was the motivation behind our collaboration with Pinduoduo,” said GOME Retail Vice President Wang Bo. “We believe that there will definitely be an explosion of pent-up demand after the coronavirus outbreak.”
GOME will extend its supply chain and logistics services, as well as its after-sales services, to PDD users as part of this promotion, according to Wang.
Pinduoduo surpassed 1 trillion yuan in GMV in 2019 and serves 585 million annual active buyers on its platform. Over 45% of the company’s GMV in November 2019 came from higher tier cities.