China's richest man, Zhong Shanshan, founder of Nongfu Springs, has made rare public remarks criticizing online shopping platforms and the Chinese government for their roles in damaging businesses and industries during the country's economic slump.
During a recent visit to eastern China, Zhong specifically targeted popular e-commerce site Pinduoduo, accusing it of contributing to the downfall of China's pricing system and causing harm to local brands and industries. He highlighted the competitive pricing strategies of platforms like Pinduoduo as detrimental to the overall industry orientation.
Furthermore, Zhong expressed disappointment in the government's lack of intervention to address the issue, labeling it as negligent in its duty to regulate the industry orientation. These comments come in the wake of a similar situation involving Alibaba co-founder Jack Ma, whose criticisms led to a crackdown on the tech sector by Chinese authorities.
Pinduoduo, founded in 2015, has seen significant growth by offering competitive pricing in a market where consumers are increasingly focused on saving money due to economic uncertainties. This trend has impacted various industries, including Western brands targeting premium markets.
Despite facing backlash earlier this year for alleged lack of patriotism, Zhong has reclaimed his position as China's richest individual with a net worth of $52.2 billion. His remarks shed light on the challenges faced by businesses in navigating the competitive landscape shaped by online platforms and changing consumer behaviors.
