David Rosenthal: uncertainty

Transcript context

…Yeah, that's a great point. I hadn't thought about that either. It's a deep moat, at least against Alibaba. Not against other startups but definitely against them. I could be wrong here. I don't know enough about the supply side of these ecommerce platforms in China to say, but they might have been able to also build a network on the other side to a unique network that's defensible of suppliers. I do think that a good portion of the supply side for PDD is different from the supply side on JD and Alibaba. It's these contract manufacturers and remnant capacity on their lines. A lot of these contract manufactures are even converting to now being fully dedicated PDD manufacturers. That's a defensible moat in that if you get a whole bunch of manufactures on the supply side to go give you a meaningful part of their business and you're deeply integrated via the C2M initiatives that they have where they're giving them data. They're telling them what types of SKUs to produce and what quantities. It's going to be really hard to switch off of that. Yeah, that creates some lock-in. I've got one more for playbook.…

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