The Rise of Grain Economy in China's Secondary Market
The global popularity of LABUBU has fueled the rapid growth of the grain economy. According to iiMedia Research data, China's pan-secondary market user base reached 503 million in 2024, marking a 2.65% year-on-year increase. The domestic grain economy market expanded to ¥168.9 billion, showing a remarkable 40.63% growth compared to 2023.
Entrepreneur Shi Haidong recognized this trend early, establishing his own brand in 2021 to produce and distribute licensed grain products. His flagship store on Pinduoduo has since multiplied to three locations, demonstrating the platform's effective merchant support system.
From White Label to Recognized Brand
Shi describes Pinduoduo as revolutionizing his approach to consumer-facing business: "When market demand meets product uniqueness and quality, success follows naturally." Within four years, his brand expanded beyond e-commerce, opening six physical stores in major shopping centers across Nanjing, Shanghai, and Xiamen.
Platform Policies Driving Market Expansion
Pinduoduo's merchant-friendly policies have significantly impacted growth:
- 2023: Introduced "¥10 Billion Subsidy" program
- 2024: Launched expanded "¥100 Billion Support" initiative
- 2025: Implemented free shipping to remote regions
These initiatives contributed to Shi's brand achieving:
- ¥100 million in total sales (70% YOY growth)
- 50% of orders originating from Pinduoduo
- 10% market penetration in western regions
- 60% increase in remote area shipments (2025 YTD)
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Breaking Barriers in Remote Markets
Tibetan student Pema Chödrön represents the new consumer demographic emerging in China's western regions. Her collection of The Deep Space of Love game memorabilia and Outcasts anime merchandise, all purchased via Pinduoduo's free shipping program, illustrates how e-commerce bridges geographical divides.
"Previously, shipping fees often exceeded product costs," explains Pema. "Now I can buy authentic merchandise at reasonable prices." Her experience mirrors that of many western consumers who've joined online communities sharing their "grain" collections.
Operational Strategies for Grain Merchants
Building Fan-Centric Products
Shi's brand "Li Ting" emphasizes:
- Female-oriented product development
- IP authenticity through licensed partnerships
- Fan participation in design decisions
A critical lesson came when fan feedback forced complete redesign of a novel-inspired product line. "This taught us to truly respect fan perspectives," Shi reflects.
Quality Control Processes
Each product undergoes four-stage inspection:
- Sample review by production team
- Detail check by customer service
- Final verification by purchasing team
- Random audits by executive staff
Leveraging Platform Features
Pinduoduo provides merchants with:
- Store upgrading opportunities
- Presale adjustments for grain products
- Marketing support during peak seasons
Shi's team maximizes these through:
- Platform-initiated flagship store conversion
- Timely participation in promotional events
- Coordination with category managers for IP launches
👉 Learn about innovative e-commerce strategies for niche markets
FAQ: Understanding China's Grain Market
Q: What exactly are "grains" in this context?
A: They're portable soft merchandise (badges, stands, keychains) featuring characters from anime, games, or novels.
Q: How has e-commerce changed access for western consumers?
A: Free shipping policies and logistics innovations have reduced delivery costs by up to 72% to remote areas.
Q: What percentage growth do niche grain products achieve?
A: Top performers like Li Ting report 70% annual sales increases through platform synergies.
Q: How do merchants ensure product quality?
A: Multi-stage inspection processes and fan feedback loops maintain high standards.
Q: Why choose Pinduoduo for grain products?
A: The platform offers the widest IP selection with guaranteed authenticity and competitive pricing.
Q: What's the future outlook for this market?
A: With platform support and growing fandom, the grain economy shows strong potential for further expansion.