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Meituan launches its own Pinduoduo-styled group buying feature

CKN
minutes 2018/10/23 09:24:39
2,379
China's Financial News, China News, Meituan

Oct 23, 2018 (China Knowledge) - Food delivery giant Meituan has recently added a group-buying feature to its WeChat mini program. The new in-program feature, translated as “quality goods group deals” and a separate mini-program “Meituan group deals” are currently accessible on a limited basis and feature products such as cosmetics, household appliances and food.

The new features take a leaf out of Pinduoduo’s book, offering large discounts on specific products in group-buying deals which encourage users to share product links on social media. This strategy has helped Pinduoduo to surpass RMB 100 billion in gross merchandise value (GMV) within just three years.

This function is still in its early testing phase and has not been added to Meituan’s own app yet. Meituan has been working with shopping platform Youzan since September to develop this new service.

Meituan initially started off focusing on e-commerce group deals but has since expanded to be a “super-app” offering a wide variety of services including food delivery, hotel and movie tickets bookings and household services. The company entered this trajectory as part of its plan to grow its extensive ecosystem and generate more traffic growth as the number of life-service deals have started to show signs of hitting a plateau.

Apart from Meituan, other e-commerce platforms such as Taobao, JD.com and Suning have also launched similar group-buying services.

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