On April 10th, Technode, a well-known American technology media, pointed out that it is impossible to remove the hat of the fake platform, and the poor market reputation has seriously affected its business performance.
Apple’s official announced that it would stop offering all Apple products to the Dodo supplier because of the large number of fake sales. Apple also claims that the Pin Duoduo platform is not an official authorized distributor of Apple, cannot guarantee the quality and source of products, cannot ensure their genuineness.
Technode’s analysis believes that after the company went public last year, it has been trying to get rid of the bad image of its sellers but repeated serious sales incidents have been investigated by relevant regulatory authorities. On August 1, 2018, the State Administration of Markets issued a notice on the official website, saying that the media’s report on ‘Pin Duoduo’ was closely watched. The Shanghai Municipal Administration of Industry and Commerce has launched an investigation. In June of the same year, the official Weibo handle of the National Office of Anti-Violation states that In-depth verification of suspected violations of laws and regulations on the “Pin Duo Duo” platform has been carried out, and relevant clues have been handed over to relevant places for investigation.
The Financial Times published an in-depth investigation article a week ago questioning the pattern of more money burning. On one hand, Pin Duoduo is mean and stingy to employees, but at the same time, it seems to be a bit “profligate” in attracting customers. According to 2018 earnings in the first quarter, Pin Duoduo will cost $1.5 trillion for every $1 trillion revenue it generates.
According to the financial report, in the whole year of 2018, the sales and marketing expenses for the whole year was 13.441 billion Yuan, a 900% increase from 2017. After deducting the loss caused by one-time equity incentives, the annual operating loss was still close to 4 billion Yuan. After the day’s earning report, Pin Duoduo’s share price fell. After the opening, the stock price quickly fell, with the highest drop of 18.37%.