Pinduoduo and Midea Group Reach Strategic Cooperation
On Thursday, Chinese e-commerce platform Pinduoduo and home appliance firm Midea Group reached a strategic cooperation with an annual scale exceeding 10 billion yuan ($1.6 billion). According to the agreement, the two sides will cooperate in product customization, channel expansion, brand building, digital technology, intelligent manufacturing, among others.
As the leading brand in China’s manufacturing industry, Midea’s products have been selling through Pinduoduo since 2016. In March last year, Midea’s Little Swan brand reached an agreement with Pinduoduo and now has an annual sales volume of 1 million units.
According to the new agreement, all Midea Group products will be available through the Pinduoduo platform. In addition, Midea will launch special customized products for Pinduoduo‘s.
Wei Zhiqiang, Vice President of Midea Group China, spoke about the company’s growth: “Since entering Pinduoduo, the compound annual growth rate of Midea’s product sales has reached 300%. In the past year, the Little Swan brand has achieved explosive growth from nothing to 2 billion units on the platform.”
In order to help more manufacturing brands improve their digital presence, Pinduoduo has set up a special team to provide one-on-one support while also investing in product R&D, brand building, digital technology and other fields of use for companies.
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In order to help integrate the digital and real economies, Pinduoduo launched the first shopping festival of this year touting traditional Chinese products from more than 100 domestic brands.