CURRENT AFFAIRS

Detailed explanation-1: -Pinduoduo has grown quickly in its seven-year history to become one of China’s biggest e-commerce firms. The company has tended to focus on lower-income consumers by offering heavily discounted products. And it has been focusing on bringing agricultural products onto its platform to differentiate from rivals.

Detailed explanation-2: -Because the app acquires users and brings them back in through a daily stream of deals, there’s little need for marketing or advertising spend. Eliminating these costs have also helped Pinduoduo scale quickly. Keeping things really simple has also been helpful for users.

Detailed explanation-3: -Alibaba only trades at 10 times forward earnings, compared to Pinduoduo’s higher forward price-to-earnings ratio of 20, but this market leader also deserves to trade at a much lower multiple than the faster-growing underdog.