China's e-commerce companies draw consumers closer to product-makers

Pinduoduo's $200m investment in Gome heats up competition with Taobao and JD.com

20200427 JD.com

Workers for JD.com at a parcel collection point in Beijing. China's e-commerce companies are collecting customers' online preferences and feedback, which they pass along to factories that produce household goods. © AP

CK TAN, Nikkei staff writer

SHANGHAI -- As China tries to ramp up domestic consumption amid an economic downturn the country's e-commerce operators are working more closely with consumer goods manufacturers, aiming to make it easier for shoppers to have a say in the development of the products they buy.

Pinduoduo recently made a maiden investment in a home-appliance retailer in a move the Chinese e-commerce player says will deepen its collaboration with manufacturers to better serve customers' needs, while rivals including Alibaba Group Holding-backed Taobao and JD.com have launched mobile apps aimed at similar initiatives.

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