At a critical time for the transformation and upgrading of the manufacturing industry in China, facing the fierce competition in the global market, the Chinese industry is urgently seeking to break through the traditional development model and find new growth drivers.

As a bridge connecting the manufacturing industry and the market, e-commerce platforms are gradually becoming an important force driving this transformation.

With the continuous maturity of the e-commerce industry, the role of e-commerce platforms is no longer limited to connecting producers, merchants, and consumers. They have become drivers of industrial upgrading. By empowering producers and merchants, providing consumers with quality products and services, and reinvesting consumer returns into platform ecosystem development, a virtuous cycle is formed, continuously strengthening the platform's supply advantage, ultimately achieving a win-win situation for all parties.

In this industrial context, pdd holdings' "New Quality Supply" is a typical case worthy of in-depth study. It is not just an innovative strategy for e-commerce platforms seeking self-development, but also a microcosm of supporting the transformation and upgrading of China's manufacturing industry.

1. Strategic Intent: Anchoring the "New Engine" of New Quality Productivity

It is undeniable that whether from the perspective of national industrial development or the e-commerce industry itself, we have reached a new crossroads, with high-quality development already becoming the new banner for progress.

In this context, "New Quality Supply" is becoming the focus of competition in the next stage of the e-commerce industry.

Looking back at the development process of the national industry, it is easy to see that the rise of e-commerce has injected new vitality into traditional industries. It has not only broken geographical restrictions and shortened supply chains but also brought new growth drivers and transformation opportunities to the industry.

Now, as the country's economy moves towards a new stage of high-quality development, how the e-commerce industry can empower industries again has become an important issue facing major e-commerce platforms.

Obviously, "new quality supply" points the direction for it.

Since the reform and opening up, China's industrial development has achieved remarkable achievements globally. However, it is undeniable that many industries are still stuck at the bottom of the smile curve, finding it difficult to reach high value-added links. As a result, this directly leads to industrial competition often revolving around price.

Reflected on e-commerce platforms, low-price competition has once become a norm. Many producers and merchants lower prices to increase the attractiveness of products in order to attract consumers and compete for market share. Although this competitive strategy may be effective in the short term, in the long run, it will not only squeeze profit margins but also profoundly affect product quality and even damage brand image.

Behind the 'internal competition' of low-price competition is the result of industrial development, and it has already become a catalyst and driving force for forcing industrial transformation and upgrading.

Against this background, focusing on 'new quality supply' has become the key to breaking this dilemma, and e-commerce platforms have been given a new mission in this new stage.

'New quality supply' is based on technological innovation, service upgrades, and brand building. It requires the e-commerce industry to not only provide platforms and traffic but also penetrate every link of the industry chain, from raw material procurement to the sale of final products, to achieve optimization and upgrading of the entire chain. This is not only a revolutionary change in the operational model of e-commerce platforms themselves but also is expected to profoundly promote the transformation and upgrading of traditional industries.

In this process, PDD Holdings has actively laid out and developed new production capacity through a series of measures such as 'billions of reductions + new quality support', providing comprehensive support to merchants in terms of technology, data, and traffic. These measures are aimed at helping merchants improve product quality, build brand influence, and thus gain a favorable position in the fierce market competition.

As the saying goes, plan before taking action, PDD Holdings accurately grasped the key moment of China's industrial transformation, creating advanced space for merchants, industries, and themselves.

At this stage, PDD Holdings collaborates with many young new quality merchants in industrial belts to jointly explore and create a 'new quality supply' chain, promoting the transformation of the industry from traditional manufacturing model to a digitized, intelligent modern supply chain system. This is the necessary path to enhance the overall competitiveness of China's industry and also contributes new momentum to the high-quality development of the Chinese economy.

2. Momentum: Mutual visit with 'new quality' merchants

Bozhou flower and herb tea, Cangzhou cosmetic brushes... These were once niche local specialty products. Today, through the PDD platform, more and more specialty products are reaching nationwide and even worldwide. The success of these merchants is a positive aspect of PDD's series of strategies focused on 'new quality supply'.

Bozhou, as the largest traditional Chinese medicine trading center in China, has unique raw material advantages. Through the 'billion subsidy plan for new quality merchants', PDD Holdings provides traffic and technical guidance for Bozhou flower and herb tea merchants, helping them transform from traditional Chinese medicine trading to flower and herb tea sales led by e-commerce, further evolving into technology-driven solid beverage processing, successfully achieving 'triple jump' in industrial upgrading.

This series of transformations not only expands the sales channels for local merchants but also allows merchants to more accurately capture market demand through platform's big data analysis, achieving precise marketing of products. In addition, PDD Holdings' billion subsidy policies have significantly reduced operating costs for merchants, enabling them to attract consumers at more competitive prices, thus rapidly increasing sales volume and brand awareness.

The development of the Cangzhou makeup brush industry has also benefited from the empowerment of PDD Holdings.

Cangzhou makeup brushes are known for their fine craftsmanship and high cost performance. However, in the past, these advantages were not fully utilized. The intervention of PDD Holdings platform provided Cangzhou makeup brush merchants with a direct window to consumers nationwide. Through platform traffic support and marketing activities, Cangzhou makeup brushes quickly opened up the market, transitioning from local specialty products to nationally recognized brands.

The empowerment of new quality merchants by PDD Holdings is not only reflected in traffic and subsidies, but also in its support for merchant brand building and product innovation.

Taking Bozhou floral tea as an example, the technical support and market analysis from the PDD Holdings platform helped merchants develop more floral tea new products that are in line with modern consumer tastes and health needs, such as sugar-free health tea, solid beverages, etc. The development of these new products not only enhances the value-added of the products but also brings new growth points to the merchants.

With the support of the PDD Holdings platform, Cangzhou makeup brush merchants have transformed from OEM production to modern enterprises with independent brands and R&D capabilities. This transformation has not only enhanced the market position and profit space of the merchants but also injected new vitality into the development of domestic makeup brushes, responding to the trend of domestic products rising, and promoting the advancement and upgrading of local industries.

These successful cases of merchants not only have a positive driving effect on their own brand building but also provide feasible development templates for other merchants, inspiring more merchants to join the ranks of high-quality development.

With the assistance of PDD Holdings, these merchants are gradually transitioning from traditional manufacturing to intelligent manufacturing, from price competition to brand competition. This is a microcosm of the transformation and upgrading of the Chinese e-commerce industry and even the entire manufacturing industry.

With more and more merchants achieving success with the support of pdd holdings, a new era of e-commerce centered on 'new quality supply' is emerging. This is not only an opportunity for pdd holdings, but also an opportunity for restructuring China's manufacturing industry and even the global supply chain. In this process, the mutual efforts of pdd holdings and new quality merchants will become an important force driving Chinese brands to the global stage.

3. Momentum: Creating the 'new quality ecosystem' and outlining a new value blueprint.

In the current business context, whether at the national level or the industry level, building a full-chain 'new quality supply' ecosystem will be a key factor in enhancing competitiveness.

Pdd holdings has integrated upstream and downstream resources to create an ecosystem covering stages from raw material supply to production, manufacturing, logistics, distribution, and front-end sales, providing merchants with one-stop services. This system not only reduces costs and increases efficiency but also enhances the competitiveness of the entire industry chain.

On one hand, by optimizing supply chain management, merchants can respond to market changes more quickly, reduce inventory backlog, and improve the turnover rate of funds. At the same time, by reducing intermediary links, transaction costs are reduced, allowing merchants to invest more resources in product research and quality improvement.

On the other hand, with the support of big data and ai technology, pdd holdings has conducted in-depth analysis of consumer behavior, predicted market trends, and helped merchants achieve precision marketing and inventory management. The application of these technologies enables merchants to adjust production plans according to consumer demand, optimize inventory structure, reduce waste, enhance responsiveness, and flexibility, thereby gaining an advantage in fierce market competition.

Furthermore, pdd holdings' platform technology support and resource integration provide strong support for merchants' product innovation and quality control. The platform helps merchants achieve rapid iteration from design to production and enhances product market competitiveness through quality supervision. This not only enhances the market performance of individual merchants but also promotes the upgrade and transformation of the entire industry.

It can be seen that pdd holdings' 'new quality merchant support plan' and other strategies have been successively implemented in major events such as the harvest festival and singles' day sales. Unlike directly supporting specific merchants, pdd holdings more preferentially adopts a market-oriented approach, avoiding artificial intervention in market competition, ensuring that all merchants compete in a fair market environment, while also promoting the healthy development of the industry.

While providing market opportunities for merchants, pdd holdings has also created a healthier and fairer operating environment for them through a series of governance measures. The platform has optimized the process for merchant onboarding and product listing, actively inspected listed products through technological means, conducted detailed reviews in conjunction with the rules team, and cracked down on illegal cheating merchants.

On the consumer side, pdd holdings has upgraded merchants' after-sales services, removed restrictions on merchants' after-sales complaints, and set up a dedicated team to handle merchants' after-sales complaints, thereby enhancing consumers' shopping experience and the service level of merchants.

It can be said that pdd holdings' platform governance and support policies provide merchants with greater innovation space, continuously improve transaction efficiency, and reduce the cost of disorderly competition. This market-oriented support approach enables industries to sustainably develop in market logic and undergo industrial upgrading.

Obviously, pdd holdings' 'new quality supply' strategy makes significant contributions to both social and economic benefits. It not only creates a large number of job opportunities, but also promotes balanced regional economic development and industrial transformation and upgrading through constructing a new quality ecosystem, supporting new quality merchants. Furthermore, amid the trend of going global, it further enhances the competitiveness and influence of 'Made in China' in the global market.

4. Conclusion.

Through a series of measures centered around 'new quality supply', it is evident that pdd holdings has successfully integrated the traffic advantages and technological strengths of the e-commerce platform with the supply chain advantages of the real economy, driving the upgrade of industrial belts and the growth of brands.

From a macro perspective, pdd holdings' strategy aligns closely with the national economic strategy, responding to the call of 'Made in China 2025' and the dual circulation development strategy. It not only enhances the international competitiveness of Chinese products, but also provides global consumers with more high-quality product choices.

From a micro perspective, PDD Holdings' "new quality supply" strategy provides an opportunity for businesses on the platform to transform and upgrade, helping them shift from price competition to value competition, thus achieving sustainable development.

From the platform itself, PDD Holdings has also built a new "moat" advantage in its competition in the e-commerce industry. By providing differentiated services and support, the platform has attracted more high-quality merchants to join, enriched the variety of goods, and enhanced user experience. This competition strategy, centered on quality and innovation, enables PDD Holdings to find new growth points in the red sea of e-commerce industry, enhancing its market competitiveness and industry influence.

It can be said that PDD Holdings' focus on "new quality supply" is a win-win strategy, not only responding to the country's economic strategy and providing opportunities for businesses to transform and upgrade, but also injecting new impetus into the platform's own development. The implementation of this strategy demonstrates PDD Holdings' sense of social responsibility and industry leadership as an e-commerce platform, providing new ideas and directions for the future development of the e-commerce industry.