How ecommerce is making China’s deflation worse

Residents do their morning shopping at a produce market in Shanghai. No company embodies China’s deflationary moment quite like Pinduoduo and shoppers flock to the app for its staggering discounts, the result of its unyielding push to lower prices. — The New York Times

When Lin Yunyun started selling diapers two years ago on Pinduoduo, China’s fast-growing ecommerce site, she was not prepared for the relentless nagging about prices.

Pinduoduo, popular among Chinese consumers for its discounts, sent “reminders” whenever other sellers dropped their prices below hers. When Lin cut her prices, the site would temporarily promote her products – only to warn her a few days later that more reductions were needed for the site to continue driving customers to her goods.