Community group buying rapidly gained popularity in China during the pandemic as a means for consumers to save money on grocery purchases via bulk orders with friends and family. However, many notable platforms, including Meituan and Alibaba's Taocaicai, have recently ceased operations due to financial sustainability issues. The model, despite its initial success in addressing last-mile delivery challenges, is hindered by low profit margins in grocery sales. Currently, Pinduoduo is the only major platform remaining active in this space.
Community group buying became a significant trend during the pandemic, allowing consumers to save money by placing bulk orders with friends and family, especially for groceries.
The model's popularity surged in China as tech firms responded to the Covid-19 pandemic, catering to consumers who faced challenges accessing groceries due to lockdowns.
Tech companies like Meituan and Alibaba have recently shut down their community group-buying operations as the market proved unsustainable due to low profit margins in grocery sales.
Despite the decline, Pinduoduo remains the last major platform offering grocery group-buying in China, indicating a significant shift in the landscape of online grocery shopping.
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