Briefing: Pinduoduo launches program to support Chinese OEMs

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拼多多推出“新品牌计划” 扶持1000家拼工厂品牌 – Sina

What happened: Chinese group-buying and budget shopping platform Pinduoduo has launched a project to support around 1,000 Chinese original equipment manufacturers (OEMs). The e-commerce platform will offer the factories perks such as traffic and brand exposure. To respond to consumers’ concern over product quality and brand reliability, the factories have installed live streaming equipment to broadcast production process on Pinduoduo.

Why it’s important: The project reflects a rising client-to-manufacturer (C2M) trend in China’s e-commerce market. With huge numbers of small to midsize manufacturers, particularly those that collaborate with global giants, the C2M model will help them establish their own sales channels and brands, while also allowing consumers to purchase quality goods at lower prices. However, intellectual property and long-term R&D issues are still challenging. Apart from Pinduoduo, NetEase Select and Taobao Xinxuan are testing similar models with offline stores.