And those payments companies settled in other countries should also familiarize themselves with the two companies and their successes, as both have been expanding internationally. Payments companies worldwide must take notice of Ant Financial and Tencent's success, strategies, and potential expansion, as they won't succeed in the extremely valuable Chinese market without understanding how the two companies are expanding their reach. The mobile payments market is controlled by Ant Financial's Alipay, which held a leading 53.8% market share in Q4 2018, and Tencent's WeChat Pay, which, along with fellow Tencent-owned payment service QQ Wallet, commanded a 38.9% share.Īnt and Tencent's combined mobile payments dominance means that other companies need to actively work with or against the powerhouses, especially as they've also stretched into other financial services, including peer-to-peer (P2P) payments, cross-border capabilities, wealth management features, consumer lending, and insurance. FYIs, partner content, webinars, and other offers) and accept our and receive emails from Insider Intelligence and eMarketer (e.g. It often indicates a user profile.īy clicking ‘Sign up’, you agree to be contacted by Insider Inc. Now about half of users are coming from the lower-tier Chinese cities, according to stats based on its customers’ addresses.Īt the same time, there is a startling contrast when PDD started its efforts to lure urban consumers by selling high-end products such as the new iPhone 11 among other things that its typical customers from the hinterlands won’t be able to afford.Account icon An icon in the shape of a person's head and shoulders. JD.com also saw better growth from lower-tier cities compared to the higher ones. PDD’s rampant and near miracle growth has already sent chills to the Chinese e-commerce duo, Alibaba and JD, who are under pressure from a slowing Chinese economy and a saturated e-commerce market in China’s cosmopolitan cities.īoth Alibaba and JD have now launched their own initiatives, through Juhuasuan and Jingxi, respectively, to reach the untapped consumers in China’s hinterlands.Įarlier this month, Alibaba held a Super Bargain Day sales, which mainly featured low-price items and then generated a roughly gross merchandise volume (GMV) of USD 8.3 billion within two days. However, what could help set Jingxi apart, is the Factory-to-Consumer (FoC) model the service taps in a bid to provide affordable yet still quality items. Shoppers could enjoy steep discounts either when they share an item to their friends, or by simply joining an on-going group buying deal on the app. It also offers flash sale deals and items at a bargain price. Jingxi is an upgrade from its predecessor named JD Pingou that mostly targets Chinese female consumers and small-city shoppers with ultra lowly priced items. The move also marks the Chinese e-commerce heavyweight’s most recent effort to expand its presence into China’s lower-tier cities and even rural areas to seek additional growth, as online shopping market growth has plateaued in the Middle Kingdom’s higher-tier cities and towns. WeChat is believed to be instrumental in helping the growth of PDD in its early days. Additionally, Jingxi users will be able to access the service through WeChat’s “Discover” tab around the beginning of October. The new service comes in the form of a dedicated app, dubbed Jingxi, as well as a mini-app that resides in WeChat.

Beijing-based JD.com has launched its online group-buying service Thursday in a move to catch up with China’s social e-commerce tide that gave rise to the country’s e-commerce challengers like Pinduoduo, or PDD.

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