Today, we will be breaking down Pinduoduo. Founded in 2015, Pinduoduo used a ‘team buying’ social network concept to build what is now China’s largest e-commerce platform measured by annual active users.    In this breakdown, we’ll explore Pinduoduo’s value proposition to a niche but incredibly large merchant segment and its role in the daily lives of hundreds of millions of consumers. We’ll cover what made Pinduoduo attractive to buyers and how the team buying concept creates scaled demand. We’ll touch on their fascinating network dynamics, from the creation of trust ecosystems to the role of gamification in WeChat to the sheer scale of the digital and physical logistics required to make what Pinduoduo has made possible.    For this episode, I am joined by Xin Yi Lim, the company’s Senior Director for Corporate Development. Xin Yi’s experience as a financial analyst covering the sector prior to joining Pinduoduo makes her perspective particularly valuable.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is brought to you by Canalyst. Canalyst is the leading destination for public company data and analysis. If you enjoy our exploration of what makes a company tick on Business Breakdowns, Canalyst should be the foundation for your quantitative analysis. For more information and access to the Canalyst model on the business we break down in this episode, go to canalyst.com/breakdowns.   ----- Business Breakdowns is a property of Colossus, Inc. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss   Show Notes [00:02:46] - [First question] - Overview and history of Pinduoduo [00:07:25] - Analysis of the user experience of social shopping   [00:13:22] - Using internal flywheels to optimize supply chain efficiency [00:16:10] - How Pinduoduo is a combination of Costco and Disneyland [00:19:47] - Overview of Pinduoduo’s business model and how it has changed over time [00:24:08] - How Pinduoduo Grocery fits in alongside their existing revenue streams [00:29:20] - Making large-scale decisions while managing such a vast infrastructure [00:32:44] - User base splits between secondary and primary cities [00:36:42] - What categories of goods their platform serves [00:40:06] - The relationship between discovery options and intentional buying [00:42:38] - How they manage to create such a deep experience with so many brand options [00:44:41] - The most defensible of Pinduoduo’s platform against competitors [00:47:53] - Growth objectives for the company as they look out to the future [00:53:38] - Learn more: Stories.Pinduoduo-Global.com, Agri Matters Podcast