Huang Zheng clearly explained Pinduoduo's business model in one sentence. "We don't rely on traffic logic; we rely on reverse customization. Taobao's traffic logic is driven by search, so it requires a massive number of SKUs to meet long-tail demand. Pinduoduo represents matching, recommending products to consumers and concentrating massive traffic on a limited number of products. Once we achieve scale, we then conduct reverse customization to reduce costs. This is the difference between Walmart and Costco."