China’s second richest man criticizes Pinduoduo for hurting brands with cutthroat prices

China’s second richest man has launched a rare public attack Pinduoduoa bargain e-commerce site, claims that the platform’s pricing system is hurting the industry.

Zhong Shanshan – the 69-year-old founder and chairman of China’s largest packaged beverage company, Nongfu Spring, and is reportedly the second richest person in the country The latest rankings from Hurun Research – criticized the Shanghai-based shopping app for intensifying an industry-wide price war.

“The Internet platforms have lowered prices, especially Pinduoduo’s pricing system – they are a great harm to Chinese brands and Chinese industries,” Zhong said in a public speech on Wednesday. His speech was widely reported in Chinese media, including the Chinese internet portal Sina.com.

Pinduoduo did not immediately respond to a request for comment on Thursday.

Nongfu Spring founder Zhong Shanshan was worth $47.9 billion in the Hurun Research Institute's latest China Rich List. Photo: Taken from Weibo — Nongfu Spring founder Zhong Shanshan was worth $47.9 billion in the Hurun Research Institute’s latest China Rich List. Photo: Taken from Weibo

Pinduoduo was founded in 2015 by billionaire Colin Huang Zheng. The company is known for its bespoke businesses in China and served as a blueprint for Temu, with which it shares ownership PDD Holdings. Its aggressive pricing strategy has helped it quickly gain market share in recent years.

As China’s economy slowed and consumer spending slowed, Pinduoduo’s rise contributed to a fierce price war among the country’s biggest e-commerce players, putting pressure on retailers’ profits.