How Pinduoduo Manufacturers Compete: One Word — Grind

First, get on board with the government. Then, grow scale while absorbing losses. Once the scale is large enough, you can negotiate lower prices for raw materials, reducing the loss margin. Relying on government subsidies (the government has employment targets, output value requirements, etc., so growth mutually benefits both sides), you might even make a profit. This squeezes out competitors who can't keep up. Once they're gone, you can raise prices appropriately and start making real money.

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