Nongfu Spring partners with Pinduoduo from wisepowder's blog

Nongfu Spring, China’s top bottled water and beverage producer, and leading Chinese e-commerce platform Pinduoduo (PDD), announced to reach strategic cooperation. Nongfu Spring will open an official flagship store in Pinduoduo and list its full lineup of products.To get more news about Nongfushanquan, you can visit en.nongfuspring official website.

PDD will provide resource support such as “10 billion subsidies” and “limited time spike,” and carries out comprehensive cooperation in R&D, production, live streaming, promotion, and more to bring new shopping experience for consumers. According to PDD, on the first day of the launch, the flagship store achieved a single store turnover of 2.8 million RMB (US$403,480), and the sale volume of Nongfu Spring’s NFC juice series exceeded 33,000 orders.

During the launch period, the flagship store opened a special live streaming session on the internet. As a leading enterprise in the domestic beverage industry, Nongfu Spring is committed to bringing various high-quality and innovative drinks. In the future, PDD will explore the production of customized products with Nongfu Spring, based on the consumption patterns and market feedback from its platform. The two companies will also have an operational technology tie-up to meet consumer demands. Founded in 2015, PDD was among first China’s e-commerce unicorns. Its valuation grew tenfold, reaching US$15 billion in early 2017 in a flash after Tencent (0700: HK) poured over US$ 200 million into the firm.

The company raised another US$1.4 billion in its series D financing round and then made a successful exit, going public on Nasdaq in July 2018. PDD has a unique business model; a large part of PDD’s users base is from lower-tier Chinese cities with more price-conscious consumers. Alibaba concentrate on higher-tier cities. So PDD is a rising star, challenging Alibaba. China’s e-commerce sector is one of the most mature yet innovative in the world. By the end of 2020, China’s e-commerce transaction volume will exceed 40 trillion RMB (US$5.8 trillion) and the total online retail sales will reach 10 trillion RMB (US$1.45 trillion).