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Pinduoduo's expansion into Southeast Asia has caused a market stir. By aggregating scattered consumer orders and bypassing various intermediaries, it directly connects with factories in China's industrial zones, achieving extremely low prices. The platform's profits do not rely on price differences but mainly come from merchant advertising and transaction fees, creating a positive cycle of traffic. It doesn't impact other e-commerce platforms but rather the intermediaries who rely on information asymmetry to resell goods, reshaping the public's perception of product prices. The platform also has flaws such as misleading titles, slow logistics, and inconsistent quality. For local merchants, they should not compete with source factories on price alone but should build a competitive advantage through service, trust, and unique value. The era of profiting from information asymmetry is gradually ending; business competition is shifting towards supply chain and comprehensive value.

Pinduoduo’s overseas expansion into Southeast Asia has sent shocks across the market. It aggregates scattered consumer orders, cuts out multi‑level middlemen, and connects directly with factories in Chinese industrial clusters to achieve extremely low prices. Instead of profiting from product mark‑ups, the platform earns mainly from merchant advertisements and transaction fees, forming a positive‑feedback traffic cycle. Its biggest impact falls not on rival e‑commerce platforms, but on resellers who profit from information asymmetry, reshaping consumers’ price perceptions. The platform also has drawbacks such as misleading titles, slow logistics and inconsistent product quality. For local merchants, competing on price against source factories is a dead end. They should build competitive edges via service, trust and unique value. The era of profiting from information gaps is fading, and business competition is shifting toward supply‑chain strength and comprehensive value.

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