China’s second-richest man has lobbed a rare public attack on Pinduoduo, a bargain e-commerce site, alleging that the platform’s pricing system is hurting the industry.
Zhong Shanshan – the 69-year-old founder and chairman of China’s largest packaged drinks company, Nongfu Spring, and the country’s second-richest person, according to Hurun Research’s latest rankings – lashed out at the Shanghai-based shopping app for exacerbating an industry-wide price war.
“The internet platforms have brought down the prices, in particular the pricing system of Pinduoduo – they are a huge harm for Chinese brands and Chinese industries,” Zhong said in a public speech on Wednesday. His speech was widely reported by Chinese media, including the Chinese internet portal Sina.com.
Pinduoduo did not immediately reply to a request for comment on Thursday.
Pinduoduo was founded by billionaire Colin Huang Zheng in 2015. It is known for its cut-to-the-bone deals in China, serving as the blueprint for Temu, which shares the owner PDD Holdings. Its aggressive pricing strategy has helped it quickly gain market share over the past few years.
Source link
