Pinduoduo launches new brand "New Pumm," with Duan Yongping's comments today:

I think it’s a natural progression for Pinduoduo to develop online brands. They are very clear about what products have volume. They can optimize high-volume products to the extreme, ensuring good quality and lower prices ( by removing all middle channels ).
They only need to select some representative products to build their own brand, without having to create their own brand for every product.
This is actually similar to Costco. If Pinduoduo only has about 4,000 SKUs of online brands, it will be quite impressive after 10 years.
In fact, Pinduoduo doesn’t need to compete for customers’ business; they just need to support explosive product companies, supervise their quality, and once standards are met, they can license their brand to manufacturers ( for this product only, and if standards are not met, they can revoke the license ).
If Pinduoduo can find 4,000 suitable SKUs like Costco, then in 10 years, Pinduoduo’s own brands will be very strong.