Miss Shopping With Friends? Try Virtual ‘Squad Shopping’

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Miss Shopping With Friends? Try Virtual ‘Squad Shopping’
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Meet the clever new way to shop in groups.

is from China’s less-developed cities and rural areas. “Pinduoduo’s success is largely driven by the significant subsidy it provides. The extremely low prices meet the needs of price-sensitive consumers from lower-tiered cities and rural areas,” says Amie Song, senior specialist of APAC at Gartner.

During the Covid-19 pandemic, JD.com has seen a boost in group shopping. According to Jiarui Liu, head of JD’s social group e-commerce initiative, sales in social group e-commerce, which it tracks separately from sales on its websites, in the first quarter of 2020 has exceeded that of the entire year of 2019.In April, JD.

Brüggemann believes that the idea of group shopping already has a place in Western culture. “Groupon was based on a group shopping activity — several people show interest for one item, and therefore they get a discount,” he says. “Offering a price discount can foster usage. A simple example is a 2-for-1 meal offer at local restaurants.”

But other observers are still skeptical of whether online group shopping can translate to a Western market. “That’s generally not the way people do things here,” says di Lieto. “Covid-19 might have accelerated digital transformation, but Western consumers are overall still much less sophisticated in online shopping,” adds Song.

One of the biggest challenges, however, is still in place. “In the West, there’s no such all-in-one omnipresent social commerce app,” Song continues. “There are significantly higher barriers for sharing behaviours since the integration is not as seamless and people’s social interactions are not as consolidated. This might be one of the most significant challenges for Western group shopping platforms. Without a social platform like WeChat, it’s much harder to quickly scale the user base.

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