PDD, the #ecommerce platform that offers discounted products through social bargaining, is posing a threat to the reigning ecommerce champ, #Alibaba. But, not in the way you might think…

PDD has a defendable position in the low end of the market in #China. They have been quick to scoop up traffic from tiers three through six. These customers are typically looking for items at the lowest price possible, and PDD capitalizes on that need.

Alibaba’s #Tmall requires stores to prove the authenticity of their products. This offers customers assurance that they’re getting what they pay for, but this often comes at a bit of a higher price than similar (and not necessarily authentic) goods on PDD.

And there’s nothing wrong with this disparity. PDD has put their focus on attracting #customers based solely on price and they have scaled it very, very fast.

But… although #PDD has quickly gained traction I don’t see it replacing Tmall anytime soon.

Tmall provides customers with #service and security that are unmatched anywhere else. Their requirements for #merchants are some of the strictest anywhere in the world. This ensures #authenticity, protection through their generous return policies, and incredible customer service throughout the transaction.