In recent years, social ecommerce has rapidly emerged across the world by leveraging social interactions to drive online sales. Examples include influencer-driven shopping on Instagram in the US, Line Shopping’s chat-based social ecommerce in Japan and Thailand, and Pinduoduo’s group-buying model in China.
What I’ve found most interesting is the group-buying model in ecommerce, which originated in the West, but has become extremely successful in the East, especially with platforms such as Pinduoduo. I’ve explored how cultural factors influence this space and why they result in such different outcomes in the ecommerce industry. In this column, I’ll examine how Pinduoduo leverages social elements to design user experiences that influence consumers’ decision-making.
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Figure 1 depicts Pinduoduo.
Figure 1—The logo and key screens of Pinduoduo
Collectivism’s Significant Role in Contributing to Pinduoduo’s Success
Pinduoduo was founded in 2015 and initially focused on the agriculture industry in China. The success of Pinduoduo is evident from its statistics: In the first half of 2023, Pinduoduo reported total revenue of approximately $11.99 billion, showing significant growth in comparison to previous years. Plus, Pinduoduo had 882 million active buyers in 2023, which emphasizes its strong market position.
China, which is Pinduoduo’s primary market and is shown in Figure 2, has a collectivist culture that emphasizes group-oriented values. This mindset is particularly widespread in lower-tier cities, where collectivist principles strongly influence purchasing behaviors. Consumers in these regions often make purchases with family, friends, or others in their own social circle.
Pinduoduo integrates group-buying directly into its platform, unlocking deals when users invite friends to participate. With a large number of consumers purchasing the same product, users can benefit from the material advantage of low prices while experiencing a collective-shopping community. By combining gamification, social interactions, and competitive pricing, the platform offers affordability for the average user and fosters community-driven shopping experiences.
Next, I’ll highlight the key social elements that Pinduoduo leverages and how they are manifested in its user interface.
Building Consumer Trust Through Social Circles
Pinduoduo’s group-buying is closely tied to social sharing, as Figure 3 shows. After initiating a purchase, consumers can share a request to join on local social platforms such as WeChat, a social platform that focuses on connections with acquaintances and is widely regarded as reliable and trustworthy. This viral sharing approach within trusted social circles increases consumer trust, making it easier for users to join the group-buying experience and complete transactions.
Figure 3—Encouraging users to share on local social platforms
How Reciprocity Fulfills the Need for Mutual Exchanges and Fosters Social Bonds
In a group purchase, the price of a product is significantly lower than for a single user’s purchase. Purchase initiators can share their requests on social platforms or others can directly join the purchase on Pinduoduo, as Figure 4 shows. The initiator benefits from the price reduction from group buying, while invited participants receive discounts, as well as the initiator’s gratitude. We can view this gratitude as a social reward, which brings a sense of satisfaction. Plus, the agreed-on group purchase benefits all parties, providing mutual advantages and strengthening social bonds.
Figure 4—Enabling others to join group purchases
Shared Joy from Gamification
Pinduoduo incentivizes users to share deals with friends, creating a viral effect. Plus, it incorporates gamification elements such as interactive rewards and daily-engagement activities to encourage users to return. In Figure 5, users are prompted to check in to get rewards. Plus, there is a lucky draw, featuring appealing animated effects and giving users the chance to win higher-value incentives. At the end of the game, a call-to-action button encourages users to share the game on WeChat to give others more chances to participate.
Figure 5—Gamification in Pinduoduo
Despite Group Buying’s Rapid Success, Data Privacy and Security Still Pose Concerns
With its focus on social sharing, some users perceive Pinduoduo as invasive or even spammy. As Figure 6 shows, concerns about data security have arisen in recent years. Pinduoduo’s app was found to contain malware that could exploit users’ devices, install malicious software, and compromise privacy. While the group-buying model drives engagement and social bonds, it also raises significant concerns about the platform’s data security.
Figure 6—Malware in the Pinduoduo app
In addition to these security incidents, Pinduoduo’s aggressive viral-sharing strategy might overwhelm users, particularly in markets outside of China, where such models are less common. Since Pinduoduo is set to expand globally under the Temu brand—an online marketplace targeting international markets—the company should strike a balance between its aggressive growth tactics and more robust security measures to build consumer trust.
Distilling Our Learnings from Leveraging Group-Buying Cultures to Add Product Value
Pinduoduo’s group buying model is deeply integrated into local social platforms such as WeChat, creating significant user engagement and stickiness. While we cannot fully replicate Pinduoduo’s success because each market has its own unique culture, the way in which Pinduoduo leverages social elements to build consumer trust and tailor its approach to the local culture can offer value insights, regardless of the type of product you’re developing.
References
Jeff Beckman. “Pinduoduo Statistics 2023.” TechReport, December 8, 2023. Retrieved November 16, 2024.
Jo is a product designer who has experience in various markets. She has worked in countries such as Taiwan, China, the Netherlands, and the United Kingdom. Jo has a keen interest in exploring how different cultures intersect and influence the software user interface (UI), user experience, and product strategy. Over the years, Jo has gained valuable insights from these diverse cultures and their transitions. As a result, she aims to share these insights with a broader audience that is interested in the cultural aspects of digital product design. Read More
