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Bloomberg
Amazon.com Inc is counting on a smartphone app known for cheap deals to lure Chinese consumers during the Black Friday online spree, in a partnership that extends to the end of the year.
The US e-commerce giant’s cross-border unit has just opened a storefront on Pinduoduo (PDD), China’s No. 3 online retailer after Alibaba Group Holding Ltd and JD.com Inc.
Starting from November 28, the three-day sales campaign will offer Chinese consumers a range of overseas products from Australian baby formula to luxury watches and Nintendo Switch consoles.
Pre-sales for some brands are already underway for the US-inspired annual shopping extravaganza.
PDD and Amazon said their partnership would continue until the end of
December. In a statement, Amazon said its pop-up store on PDD will provide about 1,000 branded foreign products.
In July, Amazon shut down its Chinese marketplace business in yet another example of how US tech companies struggle to contend with local competitors in China. The company still runs businesses including Kindle e-books and international operations in the country. Kindle has flagship stores on Alibaba’s Tmall,
JD and PDD.
While Chinese buyers are accustomed to splurging during shopping festivals created by local retail giants, they also seek out bargain foreign products during Black Friday. The tie-up will help Amazon tap the half billion annual active buyers on PDD’s addictive app.
It comes on the heels of Alibaba’s Singles Day promotion on November 11, which has overtaken Black Friday to become the world’s biggest shopping event. Alibaba logged a record $38 billion of purchases during the 24-hour shopping marathon this year. JD and PDD also launched similar campaigns around that date.
Founded in 2015, PDD has carved out a niche with social commerce that encourages making purchases with
others in return for generous discounts. But the Shanghai-based startup is now working to shake off its reputation for hawking cheap products, just as rivals Alibaba and JD delve into PDD’s base of smaller cities. The company posted worse-than-expected earnings for the third quarter, triggering its biggest share drop since its July 2018 debut.
Its partnership with Amazon now offers the company a chance to recover some of the lost ground.