Pinduoduo's business model can be summed up in one sentence by Huang Zheng: "We don't operate on traffic logic; what we aim to do is reverse customization. Taobao operates on traffic logic, where the main focus is on search, thus requiring a massive number of SKUs to meet long-tail demand; Pinduoduo represents matching, recommending products to consumers, concentrating massive traffic on a limited number of products, and once we achieve scale, we then reverse customize to lower costs. This is the difference between Walmart and Costco."