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November 9, 2018

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Pinduoduo fights poverty through urban-rural trade

PINDUODUO, a Shanghai-based discount platform, has formed strategic alliances with several provinces and regions to sell fresh local farm produces to customers in other parts of the country.

During recently concluded exhibitions at the Yuanshen Sports Center, Minhang Gymnasium, Jiading Stadium and Shanghai Agricultural Exhibition Hall, specialties such as yak meat from Tibet, walnuts from Xinjiang, tea from Yunnan and orange wine from Chongqing, were showcased.

At the events Pinduoduo entered into long-term partnerships with Yunnan, Xinjiang’s Kashgar, Tibet’s Shigatse and Qinghai’s Golog, in a move to connect urban consumers with farmers and fresh food vendors from poorer areas.

Organized by the Shanghai poverty relief office, the exhibitions drew huge public interest with the large variety of reasonably-priced high-quality products on show.

More than 5,000 types of food, ingredients and handicrafts from Yunnan, Xinjiang, Tibet, Qinghai, Guizhou, Chongqing and Hubei were brought to the four venues and put on sale.

A discount platform mainly targeting low-income customers in lower-tier cities and towns, Pinduoduo seems a perfect partner for local governments engaged in tough battles to eliminate poverty by 2020.

“For us, poverty relief is somewhat like our personal responsibility because it is very closely related with the core business of our platform,” said Xu Dandan, Pinduoduo’s senior vice president of government affairs.

“By delivering products to consumers directly from their place of origin, we not only improve farmers’ incomes but enable urban residents access to fresh farm produce for very reasonable prices.”

Just days prior to the exhibitions in Shanghai, Pinduoduo took part in a charity event organized by Shanghai’s poverty relief office and the government of Yilin, Hubei Province, selling tangerines, a well-known product of Yilin.

During the event, a total of 50,000 boxes, or more than 100,000 kilograms of tangerines, were sold through Pinduoduo in 10 days.

And overall transactions of Yilin’s oranges and tangerines through Pinduoduo eventually exceeded 2 million kilograms after about a month.

This year alone, the platform has sold dates worth 63.4 million yuan (US$9 million) and walnuts worth 9.4 million yuan, both from Xinjiang, and yak meat from Tibet valued at 3.7 million yuan, to name but a few.

To connect farmers in poorer areas with urban customers looking for fresh produce at a good price and to grow its own business, Pinduoduo has invested about 6.7 billion yuan in its poverty relief business.

As a result, more than 3.6 million tons of farm produce from all around the country had been sold.

Over 40 million clients have made 1.2 billion deals.

The company has also helped set up some 80,000 businesses in impoverished counties, and offered assistance to more than 100,000 registered poverty-stricken households.

Pinduoduo has helped create more than 7 million jobs directly or indirectly.


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