Taobao Deals, an app designed for price conscious shoppers, is internally testing a livestreaming function they will officially release for the upcoming 618 Festival, an annual shopping event initiated by JD.com. The move comes as Taobao steps up to push its consumer-to-manufacturer (C2M) strategy in competition with Pinduoduo, local media outlet 36Kr reported.

Owing to the popularity of livestreaming e-commerce, the livestreaming feature aims to boost sales on the platform, which was revamped and introduced by Taobao in March, together with its C2M strategy. It adopts a “direct-to-customer” model, which drove Pinduoduo’s rapid growth, especially from the lower-tier cities, connecting factories directly with shoppers.

According to Alibaba’s latest earnings, as of March 31, its annual active consumers on China retail marketplaces reached 726 million, with a yearly net add of 72 million while mobile monthly active users (MAUs) reached 846 million, up 125 million year-on-year. Pinduoduo had an average MAU of 487.4 million in the first quarter. 

This article is part of KrASIA’s “China Brief” section, where KrASIA’s reporters will provide quick daily updates about the tech ecosystem in China.