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Companies Further Tap Into Lower-Tier Markets in China

Companies Further Tap Into Lower-Tier Markets in China
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Group buying has proved to be a successful sales strategy in these markets. On April 29, 2020, Tencent  launched a mini program, Xiao’e Pinpin, to allow users to purchase products at lower prices by forming groups: In essence, it is a group-buying mini-program, similar to Pinduoduo. The mini-program shows products in a content feed, featuring details about items from various sellers. Currently, categories on sale include electronics, apparel, grocery and cosmetics. Tencent charges merchants a deposit to sell through the platform; they must ship orders in a timely manner and follow Xiao’e Pinpin’s regulations in order to avoid having money deducted.

Xiao’e Pinpin mini-program

Source: WeChat

Western brands and retailers looking to grow in China could partner with these group-buying platforms to tap into lower-tier markets following the coronavirus crisis.