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As Community Buyer Groups Dig in for Discounts, Suppliers and Stores Fight Back

Anniek Bao / Dec 16, 2020 06:46 PM / Business & Tech

China’s community group-buying phenomenon has gained such momentum that suppliers and brick-and-mortar retailers are fighting back.

Multiple grain, oil and grocery suppliers are trying to restrict their wholesale partners from taking orders from community group-buying entities, groups made up of residents combining to buy fresh food at discounts through bargain shopper platforms like Pinduoduo.

Individual brick-and-mortar supermarkets increasingly find themselves losing business to community group buying platforms, which are also pressuring producers to offer more competitive prices to stay in the market.

Some suppliers say they’d rather let these consumers go than lower their prices. But they also worry that competing suppliers who lower prices will benefit by clinching more orders from community group-buying entities.

Read the full story on Caixin Global.

Contact editor Marcus Ryder (marcusryder@caixin.com)

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