Pinduoduo E-Commerce Shopping store
Pinduoduo E-Commerce Website | Image source: entrackr

Colin Huang, Founder, and CEO of an e-commerce company called Pinduoduo. The story of this company is similar to Xiaomi. It means the time required to grow the company, their product and more. The application of Pinduoduo is used by more than 5 Million people. When Huang's company became public at 24 dollars per share at the end of July, it's value was less than $ 24 billion. 

Although Huang's success seems to have happened overnight. An initial investor in Huang's company, Ron Cao of Shanghai-based enterprise company Sky 9 Capital, says Huang's foundation as an entrepreneur was in decades. 

Cao said that his company was heavily influenced by the entrepreneurial qualities of Huang making him interested to invest in four companies including Pinduoduo, Sequoia, LightSpeed ​​, and Tencent.

What makes him different from other Entrepreneur? He understands the international markets as the better than other Entrepreneurs

Cao said about Huang, "He is probably more experienced than the American entrepreneur because he sees more, he is international and also he is multilingual."

Colin Huang CEO and Founder of Pinduoduo
Colin Huang CEO and Founder of Pinduoduo | Image source: medium

Did you know, Huang has spent many years at top tech companies including Google, with some of Cao's suggestions, his knowledge of the international markets could be well received. Cao said, "American entrepreneurs generally do not understand the international market well."

Ron Cao express Huang as a "serial entrepreneur", who had built three companies in his past including two shopping startups and a gaming studio named Xunmeng

Cao said, although none of these early companies became a Blockbuster success, "their aim is to earn money only."

He said, "A lot of effort is being made to run something." "You do not learn how to become a CEO at school, so when a young person begins something at an early stage, it shows that they will likely to have a more product-driven company." He knows how to make viral, social-based shopping.

A major part of the accounts for Pinduoduo's success is that it encourages buyers to share on platforms - even if it is a shopping app, not a social media site.

Pinduoduo connects a bunch of buyers with suppliers to make shopping easier, user-friendly. If a group has decided to buy then suppliers will send products and Pinduoduo connect both buyers and sellers. If people are impressed about any product, then they will probably share this thing with their friends and family on Pinduoduo, so that other people can take benefit of that deal.

Ron Cao investor in Sky 9 Capital, Lightweight, Pinduoduo
Ron Cao | Image source: sky 9 capital

Cao expressed it as "Social Commerce", which is a form of shopping that holds the power of individual networks for both sellers and consumer benefits.

Pinduoduo's provide services only in China, but as per Cao suggestion, the platform will be soon ready for exploration to other countries. 

Ron Cao also said, "He thinks this as a global sport." "The company is in benefit because their whole business is running inside China."

There is two major reason why the company is in benefit? As the business is inside the country there is no requirement to pay Tax duty for other countries and another one is the population of China is about 1.5 Billion.

The company is focusing on affordable, cheap and quality products. But Cao said if they will find this three things in their products, it could change the future of the company as well as e-commerce stores.

"His platform is suited for lower-end products for now — you're not buying high-end luggage on Pinduoduo, for example," Cao said. "But all of that stuff, having the greater supply chain is a way of learning how the model works. So they're ahead. There are many opportunities for their expansion, and they're thinking globally."

Cao said, "This platform is suitable for lower end products for now - you can't buy high-end goods at Pinduoduo." They are also working on this problem, so customers can also purchase high-end goods from Pinduoduo.

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