New biz model revolutionizes e-commerce sales
Updated 09:21, 12-Nov-2019
Zhou Jiaxin
02:34

No matter how much Ms. Wang uses her broom, her pet continues to shed hair and cause her trouble every day.  

But the booming e-commerce industry in China is now able to tailor to Wang's needs by providing customers across the country with personalized sweeping robots at a lower price.  

Wang's friends recommended her the robot product on Pinduoduo, one of China's top e-commerce player. After using it for a while, she was deeply impressed.  

"The function has been stable and it's doing a really good job in cleaning the dog's hair and dust," Wang said. "I don't need to bend down, and it saves me time and hands."  

Wang herself also wonders how the manufacturers know her needs, and sell such robot products at only 38 U.S. dollars.  

That's all about data analysis, according to Wu Pengyun, leader of an R&D team for robot products. He said that big data shared by e-commerce platforms inspires their initiatives.  

"Big data tells us public demands are not from us," Wu said. "They demand a robot able to clean the floor and absorb dust, costing them about 40 U.S. dollars." 

But to secure the price for the customized robot was a challenge. 

Wu's team had to drop a high-cost imported motor while developing their own that is consistent in terms of quality. All those rest days were put aside for November 11, or Double 11 -- the world's biggest day for online shopping.  

They made it and added three more production lines for the big day. The capacity this year will reach 10,000, according to Wu. 

Pinduoduo says it encourages an option for customer-to-manufacturer, or C2M, by adopting a non-commission strategy.  

"Once qualified and cashed as deposit, all manufacturers can start businesses with no more charges for each order," said Song Wei, senior director of the e-commerce platform. 

John Gong, professor of economics at the University of International Business and Economics, said the new trend will change the entire production model, improve inventory control and industrial efficiency. 

"There will be better pricing, more consumption," Gong said, adding the C2M model is a very fundamental catalyst to the economy.