In the past few days, the first share of China's e-commerce has changed hands!With the release of Pinduoduo's latest third-quarter earnings report, its stock price has risen sharply for a few days, and its market value once surpassed Alibaba, becoming the first Chinese e-commerce stock. The "slash" that was hated in the past has now become a "real fragrance" in many people's mouths. This company, which was only established in 2015, has stood on top of the world in only 9 years, what did Pinduoduo do right?
Let's turn to this gorgeous financial report. In the third quarter, the company achieved operating income of 688400 million yuan, a year-on-year increase of 939%；Net profit attributable to the parent company was 155400 million, a year-on-year increase of 467%, revenue and profit significantly exceeded market expectations. You must know that China's e-commerce industry has entered the stock market stage, and the former giants are now engaged in reducing costs and increasing efficiency, and major platforms are falling into a strange circle of "increasing profits but not increasing income". In this market, it is very normal for the industry as a whole to grow at a year-on-year rate of less than 20%. In this way, Pinduoduo's financial report data seems very "abnormal". You must know that this release is the third quarter results, which does not include the performance of domestic Double 11 and TEMU during the overseas "Black Five" period.
Pinduoduo's main focus is on the sinking market, and with its low-price strategy, Shengsheng has fought a bloody way in the gap between Ali and JD.com. Starting from the group link and slashing in the WeChat group, it successfully attracted a large number of users by providing low-priced products. Consumers can enjoy lower ** on Pinduoduo, this low-priced commodity has a natural attraction, stimulates users' desire to buy, and quickly brings about the explosive growth of the number of users. A little more affordable, a little less routine, rather than engaging in complex preferential activities, so that consumers are tormented in making up orders and counting, it is better to directly reduce the convenience.
Pinduoduo is not only an e-commerce platform, but also incorporates social elements. Through functions such as sharing in the circle of friends, joining a group, and inviting friends, users have formed a social chain and have the opportunity to interact with friends and share shopping experiences. Although this kind of "socialization" has been complained about by the majority of users and has been shamed by all kinds of people, this does not affect the fact that there are still a large number of people who participate in it and enjoy it. It effectively improves the stickiness and engagement of users, making users more willing to shop on Pinduoduo. Since the positioning is cheap, it is necessary to do the sinking market to the end, fully tap the potential of this market, and deepen the cultivation in this area. Through the group leader model, users in rural areas and sinking markets are encouraged to become promoters of Pinduoduo and help them spread Pinduoduo's brand and products. This not only effectively expanded Pinduoduo's user base, but also met the unique consumer needs of these markets, driving sales growth.
The low-price strategy has brought huge customers, but it has also caused consumers to worry about product quality, so tens of billions of subsidies have come. The low-price image is not the only ** in Pinduoduo, the emergence of tens of billions of subsidies began to spread its customer base to the middle and high-end crowds, after all, the cheapest iPhone on the whole network made many people exclaim "really fragrant". In addition, for low-value goods, Pinduoduo adopts a refund-only operation method, which is really currying favor with consumers, and kicking out merchants with poor qualifications by "sacrificing" merchants, so as to gradually move upstream.
The economy is sluggish and consumers are becoming more sensitive to goods, not only at home but also overseas. The sales of Temu, a cross-border e-commerce platform owned by Pinduoduo, have exceeded US$5 billion, and the GMV has reached a maximum of US$80 million in a single day. During the Black Friday period in the United States, it was directly with the retail giant Amazon. It has to be said that Pinduoduo is thriving both domestically and overseas, and in this context, Morgan Stanley, a major investment bank in the United States, has listed Pinduoduo as the first choice in China's e-commerce sector, and believes that its stock price is still in the "best position".
Behind Pinduoduo's soaring performance and stock price** is the successful operation of its unique business model and strategic strategy, thus creating a unique and competitive e-commerce platform. Although Pinduoduo is strong in this sinking market, it cannot be regarded as without rivals. This is not Douyin e-commerce, the number of users of Douyin in China is not inferior to Pinduoduo, and TikTok has more than 100 million active users in the United States. Competition is everywhere, shopping malls are like battlefields, who will dominate the ups and downs in the future, whether the new king will ascend the throne or the old king will be crowned, let's wait and see.