A former Google engineer named Colin Huang has developed an online shopping app named Pinduoduo in China during 2015. Last year it has bagged nearly 350 million customers, which is more than the entire population of the United States. Its parent company is getting listed on the Nasdaq stock exchange on Thursday. It hopes to raise $1.4 billion in this week’s share offering. That would give the company a valuation of more than $20 billion. So, what does Pinduoduo sell at what price?
A pair of stretchy, “Playboy”-brand men’s pants: less than $3.
Eleven pounds of rice: $4.
A four-pack of boxer briefs printed with an image of a wolf’s head: $2.
A purple water kettle with “LOL” written along the bottom: $3.
A pink, around-the-neck smartphone stand that lets you lie down and watch videos at the same time: $1.
A vibrating electric belt that goes around the midsection and supposedly helps shed fat: $6.
And many more….
Who buys these things from Pinduoduo? Hundreds of millions of Chinese citizens at the bottom of economic pyramid. This is the story.