Pin­duo­duo in Cri­sis

NewsChina - - NEWS BRIEF -

Pin­duo­duo (PDD), a large Chi­nese on­line B2C shop­ping plat­form that tar­gets lower-in­come peo­ple and fea­tures group pur­chases, has come un­der fire for in­dulging coun­ter­feits since it was listed on the Nas­daq on July 26.

Many cus­tomers were shocked that PDD was listed at all, given the web­site, which mostly of­fers cheap com­modi­ties, is al­legedly over­run with poor-qual­ity and knock­off prod­ucts, in­clud­ing coun­ter­feits with a logo or name tag sus­pi­ciously sim­i­lar to that of fa­mous brands, such as abidas (adi­das) and kuma (Puma).

On July 30, an in­dus­trial re­search group un­der Tian­feng Se­cu­ri­ties stud­ied the top 100 home ap­pli­ance prod­ucts sold by PDD from June 27 to July 27 and found that 39 of them were coun­ter­feits, with a sales vol­ume of more than 63 per­cent of the to­tal. The rev­e­la­tion fur­ther in­ten­si­fied crit­i­cism, with sev­eral top brands an­nounc­ing they would sue PDD for al­low­ing coun­ter­feits to be sold on the plat­form.

Un­der pres­sure, PDD held a press con­fer­ence on July 31, claim­ing it had been fight­ing coun­ter­feits since the first day it opened and had taken more than 10 mil­lion ques­tion­able prod­ucts off the shelves in the past year. But judg­ing from the ex­pe­ri­ence of Taobao and which dom­i­nate the Chi­nese on­line shop­ping mar­ket, an­a­lysts say it will be hard for PDD to re­gain cus­tomers' trust.

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