Pinduoduo announced that it would upgrade its New brand Initiatives on Thursday.
The New Brand Initiative, launched at the end of 2018, aims to help the growth of China’s small, medium and micro manufacturing enterprises, according to Pinduoduo.
Chen Qiu, vice president of Pinduoduo, said the purpose of this initiative upgrade is to further support Chinese manufacturing enterprises in “embracing new consumption, creating new brands and realizing new intelligent manufacturing.”
The upgraded initiative will increase efforts to support new brands in four aspects:
- It will increase the support range. From 2021 to 2025, Pinduoduo aims to support 100 industrial belts, order 100,000 new brand products, and drive 1 trillion sales.
- Pinduoduo aims to expand partners. From top OEM enterprises to high-quality manufacturing enterprises all across China, with the number increasing from 1,000 to 5,000.
- More resources should be invested. Some top app resources such as 10 billion subsidies will be included to provide customized brand promotion programs for enterprises.
- Pinduoduo wants to innovate the cooperation mode. From helping OEM companies to incubate their own brands, the mode will be upgraded to four models, including OEM companies’ own brand cultivation, well-known brand sub-branding, new and cutting-edge brand support, and the rebuilding of old domestic brands.
Throughout the past year and a half, over 1,500 enterprises have participated in the initiative, with a cumulative order volume of 460 million orders. The average daily sales volume of customized goods in the third quarter of this year exceeded 2 million, driven by strong domestic demand post Covid-19 and the country’s emphasis on dual circulation.
“The formation of enterprise brands can promote the linkage between upstream and downstream industries, and therefore form an entire industrial chain with enterprise brands as the core,” said Zhang Chunyu, a researcher at the Chinese Academy of Social Sciences, who believes the upgraded New Brand Initiatives will drive up the overall regional economy.