China’s social commerce platform Pinduoduo is reported to have the fastest user growth rate compared with other e-commerce platforms among the country’s younger generation between the ages of 19 and 35, according to a report published Saturday by Beijing Normal University.
According to the “New Youth Consumption Observation and Research Report” based on data from the National Bureau of Statistics and data intelligence services provider QuestMobile, Pinduoduo has the highest user growth rate, 52.1%, among young generations out of all Chinese e-commerce platforms.
“Young people love to spend money but they don’t want to waste money. They care about product quality and whether it’s worth the price. Pinduoduo‘s team purchase feature allows users to share products with friends and enjoy a lower price together, that’s why the platform is popular among young people,” the report said.
The report shows that the average monthly opening times of the Pinduoduo app by young users increased from 84.4 to 89 times last year, surpassing its rival Aliababa’s Taobao, which had a monthly opening times of 81 per person.
The “new youth”, defined as mobile Internet users aged between 19 and 35 years old, consists of 650 million people across the country. Most of them are proficient in online shopping and good at comparing prices between platforms. They are more willing to pay for high-quality products while still carefully comparing prices to get deals at lower prices via group buying.
The report shows that young people have primarily contributed to Pinduoduo‘s active user growth. The platform’s average monthly active users in Q1 2020 reached 487.4 million, an increase of 68% from 289.7 million a year ago, compared with 18% and 21.8% for Taobao and JD.com.
China’s young generation’s shopping behaviors are mainly guided by social interactions and fan economy, the report said. Without specific shopping goals, consumers enjoy shopping while interacting with each other, which thereby increases user retention.