China’s Pinduoduo Is Nipping at Alibaba’s Heels

For well over a decade, Alibaba has been China’s top destination for online shopping. But the rapid growth of its leading competitor, Pinduoduo, suggests its hold on the market isn’t guaranteed.

Pinduoduo’s monthly active users climbed 40% in May from a year ago to 471 million, narrowing the gap with Alibaba’s Taobao app, whose users increased 20% to 695 million, according to research firm QuestMobile. Some of Pinduoduo’s growth came as the app, known as a marketplace for cheap goods like $1 pairs of shoes and $2 handbags, began to sell iPhones and other popular brand-name items at significant discounts. That put it in closer competition with Alibaba.