PDD facilitates the purchase of physical goods at the lowest possible prices — AGI cannot replace the need for affordable physical products, and PDD's price positioning may actually benefit from AGI-driven economic disruption.
PDD Holdings is a multinational commerce group that operates Pinduoduo, one of China's largest e-commerce platforms, and Temu, a rapidly growing international e-commerce marketplace. Pinduoduo pioneered a social commerce model in China where users share deals and participate in group buying to get lower prices, particularly targeting value-conscious consumers and agricultural products. Temu launched in 2022 as an ultra-low-cost cross-border e-commerce platform connecting Chinese manufacturers directly with global consumers, growing explosively to become one of the most downloaded apps worldwide.
Chinese consumers (Pinduoduo), particularly in lower-tier cities and rural areas seeking value-oriented shopping. International consumers in the US, Europe, and other markets seeking ultra-low-cost products through Temu. Merchants are primarily Chinese manufacturers and sellers who list products on both platforms. Agricultural producers use the platform for direct-to-consumer sales.
PDD operates Pinduoduo (China e-commerce) and Temu (global discount e-commerce), facilitating the sale and distribution of physical products. AGI cannot replace the physical goods people buy, wear, and use. However, AGI could transform how consumers discover and purchase products, potentially bypassing e-commerce platforms if AGI agents negotiate directly with manufacturers. Customers are consumers buying physical products and merchants/manufacturers selling them. Consumer demand for physical goods is fundamental. Price-sensitive consumers (PDD's core demographic) are unlikely to stop seeking bargains regardless of AGI.