“The Pinduoduo model is based on social media and has wider reach into a lot of new Internet citizens,” said Jason Ding, partner at consultancy Bain & Co. “Alibaba is trying to serve more high-end customers, but there are people who don't want to pay for premium, but value."

“The Pinduoduo model is based on social media and has wider reach into a lot of new Internet citizens,” said Jason Ding, a partner with Bain & Company. “Alibaba is trying to serve more high-end customers, but there are people who don't want to pay for premium, but value."