Sany Heavy Industry, one of China’s largest engineering machinery makers, is poised to more than double its sales of heavy trucks this year, with help from e-commerce platform Pinduoduo.
Sany, which recently opened its flagship store on Pinduoduo, sold almost a hundred of its heavy trucks through a three-hour Pinduoduo livestreaming session that attracted 3.7 million viewers. The company sold more than 10,000 heavy trucks in 2019, the fastest heavy truck brand to reach that milestone, and is forecast to sell 22,000 of the rigs this year.
Instead of a traditional product unveil, Sany Heavy chose to release seven new models of tow trucks in collaboration with Pinduoduo. Sany Group director Liang Linhe noted that the company shared the same mission as Pinduoduo in providing the greatest value-for-money products for users.
For the industry, Sany is the “devil” while consumers see the company as the “angel” because prices have not risen for the past two years, Liang said.
“My mother was once a truck driver, so I deeply understand the hardships that truck drivers face,” Liang said. “That’s also why we stand on the side of consumers.”
Sany can price its models 30,000 yuan (US$4,600) to 50,000 yuan lower than competing offerings because of its effective cost controls, Liang said. The company also chooses to earn less profit on the sale of each piece of machinery, charging fees on value-added services instead, he said.
Selling the trucks through an e-commerce platform like Pinduoduo also removes layers of intermediaries, which translate to lower prices as buyers get the trucks directly from the manufacturer.
“Pinduoduo adopts the same supply chain model for agricultural products and fast-moving consumer goods by going straight to the source,” said David Liu, vice president of strategy at Pinduoduo. “This reduces the logistics costs and gives consumers great value-for-money products.”
Pinduoduo has helped manufacturers increase their market access by connecting them directly to consumers through its e-commerce platform. Many manufacturers have been able to create and promote their own brands to end-users with the help of Pinduoduo, instead of relying on distributors or becoming white-label manufacturers for other brands.
The e-commerce giant is also investing in building a low-cost, 24-hour logistics infrastructure to distribute perishables, tapping into the growing demand for online grocery shopping among consumers.