Pinduoduo has really shocked the old fox recently.
On November 28, Pinduoduo released its third-quarter financial report, with revenue of 68.8 billion yuan, a year-on-year increase of 939% and a net profit of 155400 million yuan, with a net profit margin of 226%, all data came in higher than expected.
With this excellent performance, Pinduoduo's share price was ** 18 on the day8%, the total market capitalization is close to Alibaba.
It was not only Lao Hu who was shocked, but also Mr. Ma, who made a rare speech on Ali's intranet to cheer for the employees.
On the evening of the 29th, Pinduoduo's market value surpassed Alibaba, becoming the Chinese concept stock with the highest value in the United States, and also the e-commerce company with the highest market value in China.
When Lao Hu set the draft, the market value of Pinduoduo surpassed Alibaba again, and China's most promising e-commerce company may be Pinduoduo in the future. (This old fox has been revised back and forth many times).
The market value higher than Pinduoduo and Alibaba is Tencent, which is listed on the Hong Kong stock market, and Tencent's current market value is 3033 trillion Hong Kong dollars, converted into US dollars is about 388.4 billion, and it is also the listed company with the highest market capitalization in China.
However, Tencent's biggest competitor in social networking is not yet publicly available, and that is ByteDance. In the first half of 2023, ByteDance's revenue reached $54 billion, while Tencent "only" $41 billion in the same period.
ByteDance's revenue is already approaching Facebook's parent company, Meta, which currently has a market capitalization of $853.7 billion.
Once upon a time, Alibaba and Tencent, which were considered unshakable in China's Internet position, are now facing strong rivals. What is even more commendable is that the overseas success of Pinduoduo and ByteDance has opened up the pattern of China's Internet.
The new king should be established?
Whether it is the scale of revenue or the diversification of revenue, Pinduoduo cannot be compared with Ali for the time being, and Alibaba's revenue in the same fiscal quarter (July-September) reached 2247900 million yuan, more than three times the 68.8 billion yuan of Pinduoduo, with a net profit of 401900 million yuan, which is also much higher than Pinduoduo.
Investors are willing to value Pinduoduo higher than Alibaba, obviously optimistic about the future of Pinduoduo, and Pinduoduo's revenue growth this year is very exaggerated.
In the first quarter of this year, Pinduoduo's revenue was 376RMB3.7 billion, up 58% year-on-year;In the second quarter, revenue grew to 5228.1 billion, up 66% year-on-year;In the third quarter, year-on-year growth was 94%.
In terms of growth rate, Pinduoduo has exploded Taotian and JD.com.
Listing the numbers, Alibaba's revenue growth in the three quarters is. 50%；And JD.com's revenue growth only. 71%。
From the perspective of revenue structure, Pinduoduo** marketing revenue was 39.6 billion yuan, a year-on-year increase of 39%, and the transaction service fee was 291500 million yuan, a year-on-year increase of 315%.
The increase in transaction service fees is generally believed to come from the rapid development of Pinduoduo's overseas e-commerce temu.
Temu's GMV (gross merchandise value) is estimated to reach $14 billion in 2023, and Temu has grown rapidly since its U.S. listing in September last year, according to LatePost. Temu replicates Pinduoduo's "slash" and "extremely low" strategies in China, where users share links through social platforms such as Facebook and X (Twitter) to get discounts on their products.
In a year, Temu has been launched in 47 countries around the world, and Pinduoduo's biggest competitor in the overseas low-price model is Shein, also from China.
Compared with Alibaba and JD.com, Pinduoduo obviously has a stronger willingness and determination to expand overseas and create more revenue.
In the past, domestic entrepreneurs succeeded by copying foreign business models to China, but now, on the other hand, domestic companies have begun to bring their successful domestic experience overseas.
ByteDance is also copying this set of play, and the foreign version of Douyin Tik Tok is like this, whether it is a content model or a live broadcast e-commerce, it is copied from the domestic Douyin.
Tik Tok influencer Khaby
The domestic Internet has become a gladiatorial arena, and if enterprises want to survive in the gladiatorial arena, they have to take off a layer of skin, practice their skills, and go overseas, which becomes a dimensionality reduction attack.
Regarding ByteDance, since it is not listed, its financial situation is not well known to outsiders. Its revenue of $54 billion in the first half of the year was reported by the Financial Associated Press citing foreign **In 2022, ByteDance's overall revenue has surpassed Tencent, reaching 560 billion yuan.
Image source: latepost
According to the information found by Laohu, 80% of ByteDance's revenue comes from the domestic market, and overseas revenue accounts for only about 20%. Compared with the 700 million monthly active users of Douyin in China, and the monthly active users of TikTok Tok overseas exceed 1 billion, there is obviously more room for growth in the scale of revenue.
It has to be mentioned that whether it is Douyin or TikTok Tok, e-commerce has become an important part of Byte's development, and the total merchandise turnover of Douyin** in the first ten months of this year has been close to 2 trillion yuan, a year-on-year increase of nearly 60%.
This revenue scale and growth rate may not only worry about Ali and JD.com, Pinduoduo also has to weigh it carefully.
Ali and Tencent have been fighting openly and secretly for so many years, and in the future, Pinduoduo and ByteDance will become sworn rivals againIt's really possible!
On the Forbes list, Huang Zheng and Zhang Yiming have already become the two most valuable Internet bigwigs in China, and Huang Zheng is currently worth $52 billion, becoming the richest man in China's Internet.
Zhang Yiming is currently worth $43.4 billion, but if Byte goes public, Zhang Yiming is very likely to surpass Zhong to become the richest man in China.
Perhaps the era of "Erma" has passed, and the era of "Zhang Huang" has arrived.
Will the old king retire?
If you want to say that the old king will retire, the answer is no, Pinduoduo and ByteDance are far from the time when they will celebrate each other, and the competition can rejuvenate the Internet "old fritters".
*It is still the largest e-commerce platform in China, and Pinduoduo is still far from both turnover and revenue.
JD.com is the largest moat of JD.com, with high-quality service and good express delivery service, and it is the most trusted platform for many consumers.
Valuables on Jingdong, clothing personal care in **, life consumables Pinduoduo" is the shopping secret of many users today, Pinduoduo wants to change the user's consumption Xi, it will not be easy.
* And Jingdong is also launching a counterattack against Pinduoduo, and has launched the "10 billion subsidy" project, Liu Qiangdong and Ma Yun have also repeatedly emphasized the low price of goods, and used Pinduoduo to fight the best war with Pinduoduo.
The rise of ByteDance is Tencent's biggest threat to the user market and social relationship chain.
In order to benchmark against today's headlines, Tencent launched the Daily Express, but failed.
With the popularity of Douyin in 2018, ByteDance's products became the company that occupied the second most user time, and the first was Tencent.
Tencent once tried to "micro-vision" snipe Douyin, but it had no effect, and then WeChat blocked the sharing link of Douyin, and launched a ** account on WeChat, but it could not stop the further growth of Douyin.
ByteDance also launched Tomato** and Chaoxi Lightyear (two days ago, Byte "**Soda**", seizing Tencent's online text, games, and **market share.)
The two compete in social networking, gaming, networking, enterprise services and other businesses.
In addition to the short **, in other fields, ByteDance is still difficult to shake Tencent.
The landscape of the Internet in China has changed
In 2016, CCTV's "Dialogue" program invited Zhang Yiming to do an interview, and the spokesperson sitting in the audience, Huang Zheng from Pinduoduo, was facing the problem If you are Zhang Yiming, how to face BAT?, Huang Zheng said the following paragraph.
The development of Temu and Tik Tok verifies that Huang Zheng is not wrong.
Alibaba, Tencent, JD.com, NetEase, and other companies established in the millennium focus on the domestic market and are more conservative about overseas markets.
Companies born in the context of the mobile Internet, such as Pinduoduo, ByteDance, and miHoYo, have a more international perspective, with a new foothold in the domestic market on the one hand, and radically seeking globalization on the other.
With the rise of Pinduoduo and ByteDance, the upstarts of the mobile Internet are creating higher value through globalization and surpassing the overlords of the desktop Internet.
China's internet landscape is also being changed by Pinduoduo and ByteDance.
This also gives some inspiration to future entrepreneurs and enterprises, don't be obsessed with the domestic market, grow in the domestic market, and focus on the world when you grow.
Enterprises that have grown up in the "monster house" of the Chinese market can really fight when they go out.
References
National Business Daily: Big news!Super 137 trillion yuan, Pinduoduo Mei** value once surpassed Alibaba!
Tiger Sniff: The hidden "killer" who did not appear in Pinduoduo's financial report
Barron's: Temu was a catalyst for Pinduoduo's stock price.
Late latepost: Temu runs wild for a year: 47 countries, 200 million users, and the United States reads GMV approaching SHEIN
Shangyinsha: Why can't TikTok, which is used by 1.6 billion people, surpass Douyin, which is used by 1 billion people?
Cityboundary: How did Byte get to the Iron Throne.
Late latepost: War and Peace: ByteDance's Six Years of Entanglement with Tencent.
Edit: Mu Yi.