Summary of Pinduoduo’s IPO Takes China Back 20 Years

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Pinduoduo’s IPO Takes China Back 20 Years summary
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While online shopping platform Pinduoduo raised more than $1.6 billion in a NASDAQ IPO just three years after its launch, the company’s success hasn’t been without controversy. In an article from Huxiu.com that went viral on Chinese social media, author Da Wei Weng delivers a scathing critique of the company’s sales of shoddy and counterfeit products. While the company’s defenders claim that the pricing allows more consumers to purchase the goods and to improve their standard of living, Da Wei Weng reprimands Pinduoduo’s misleading and underhanded advertising tactics. The flood of fake goods the company sells, he argues, has dialed back hard-fought consumer rights gains. getAbstract recommends the article to consumers in China and consumer watchdogs everywhere.

In this summary, you will learn

  • Why Pinduoduo’s business model has been incredibly successful, 
  • How Pinduoduo’s advertising tactics may be misleading or simply false, and 
  • How its listings of fake goods counteract the government’s efforts to build stronger consumer protections.
 

About the Author

Da Wei Weng is a writer for Huxiu.com.

 

Summary

China was flush with fake products in the 1980s and 1990s. Famous cases include a major counterfeit drug scandal and the infamously poor quality of leather shoes made in Wenzhou that often lasted only a day. In those decades, the reputation of Chinese product quality plummeted abroad. Fake goods coming out of China negatively affected exports and foreign relations.