The topic of Chinese enterprises going overseas has been hotly discussed again this year.
There are two basic understandings about going to sea:
Going to sea is inevitableMany people always like to see the tide of Chinese enterprises going overseas as a way out under the stock competition, but I think it is not, or not exactly, I think that the participation of Chinese enterprises in global competition is an inevitable process from excellent to excellent, and it is also a process of tempering.
Going to sea is nothing newIn the past 20 years, China's foreign trade-oriented economic development model has allowed us to participate in global competition, but this competition has changed from products to brands and models to the sea.
Having said that, going overseas is not simple, especially for those companies born in China and growing up under the infiltration of the domestic consumer market, blindly going overseas may not necessarily be successful, and there are many companies that fail to go overseas in order to go to sea. In my opinion, the enterprise or platform that can really achieve the purpose of going overseas must have its own domestic development ability overflow, which is based on its own high-quality development, which is a natural and natural result, and I have seen this result in Pinduoduo.
On the evening of November 28, Pinduoduo released its financial report for the third quarter of this yearAccording to the financial report, Pinduoduo Group's revenue in the third quarter of this year was 688400 million yuan, a year-on-year increase of 939%；Achieved GAAP net profit of 155400 million yuan, with a net profit margin of 226%。After more than a year of its launch, Duoduo cross-border exports more than 400,000 parcels per day, with an average daily cargo weight of about 600 tons, more than half of which are sent to the U.S. market. In the U.S. market, there are more than 2 million SKUs on the line, and it is expected to reach 4 million categories this year.
Most of the time, we like to attribute other people's success to time and luck, and Pinduoduo's rapid cross-border business, especially in the United States, has led many to think that the current U.S. consumer environment is just a fit for Pinduoduo's platform characteristics. I don't deny that this factor must exist, but I prefer to attribute Pinduoduo's success to the inevitable result of its high-quality development, even if it is not in the United States, it is only the difference in growth speed and size, which is determined by different markets.
Only internal cultivation can spill over
This is the second quarter of Pinduoduo's announcement of its transformation to high-quality development, and it has already delivered a good report card. As a shopping platform that started from the sinking market, it is hard for everyone to imagine that today, 5 years after listing, Pinduoduoguang's revenue in the third quarter is 131 more than the annual revenue in 2018 when it was listed200 million has nearly fivefold to achieve such a leapfrog growth.
Now, Pinduoduo chooses to work steadily and steadily, taking high-quality development as the most urgent development goal at present. Pinduoduo's high-quality development is not simply to achieve high-quality growth in retention, but based on the three directions of high-quality consumption, high-quality supply and high-quality ecology, and to go hand in hand from consumers, merchants and platform ecology to achieve longer-term development.
As one of the three troikas driving economic growth, consumption has always been the primary growth driver. Judging from the first three quarters of 2023, consumption recovery has become the main theme of growth. There is no doubt that everyone's consumption demand is still there, but the demand for consumption has become higher. Consumers consider more factors about whether to buy a certain product, from the consideration of more single conditions to a comprehensive consideration based on the best advantages, supply capacity, service guarantee, fulfillment and distribution. And this also coincides with the layout of Pinduoduo's high-quality consumption.
Specifically, Pinduoduo introduced a series of subsidies and activities in the third quarter to help further release consumption potential.
In September, Pinduoduo invested 1 billion yuan in resource packages for agricultural products in advantageous fields, and launched the "Duoduo Harvest Pavilion" with 300,000 agricultural-related businesses on the platform and more than 1,000 agricultural production areas across the country, and fully covered the agricultural and sideline products settled in the "Harvest Pavilion" with a subsidy of 10 billion yuanIn late September, Pinduoduo joined forces with 100 domestic and time-honored brands such as Yili, Anta, Galanz, Yanghe, and Yu Meijing to launch a "Domestic Products Festival" promotion for more than a month. Pinduoduo's characteristic live broadcast, 10 billion subsidies and 10,000 people and other support resources settled in, during which Pinduoduo also cooperated with CCTV Finance to launch a 10 billion subsidy live broadcast.
For the knowledge inclusion project "Duoduo Reading Month", which has been held in the sixth quarter, Pinduoduo has also further deepened its support. The new season of "Reading Month" launched on September 26 this year added two major sections, "Editor's Recommendation" and "Travel Reading Room" on the basis of last year, and continued to invest 100 million yuan in reading** for official subsidies, superimposed on the key resources of the "10 billion subsidy" channel, and sent genuine books to nearly 900 million users.
High-quality consumption needs the support of high-quality supply, which is also the second key point in Pinduoduo's high-quality development strategy. In addition to increasing inclusive subsidies, Pinduoduo has also continuously improved the first-chain system to enhance its ability to bring high-quality and low-cost goods to consumers with high-quality first-quality chains.
In order to further serve rural revitalization, since the beginning of this year, Pinduoduo has launched the "Agricultural Cloud Action" to help local special agricultural products enter the public eye and accelerate the realization of standardization and branding. In the third quarter, Pinduoduo brought the "Agricultural Cloud Plan" to agricultural producing areas such as hairy crabs in Jiangsu and fruits in Northwest China, realizing the construction of digital agricultural product chains in more production areas. As an important means of agricultural innovation, science and technology have also become the focus of Pinduoduo. To this end, Pinduoduo deeply supports the selection and competition of the 2nd Science and Technology Academy Competition to carry out the selection and competition of excellent cases of science and technology to strengthen agriculture nationwide, and increase efforts and subsidies for various science and technology to help agricultural products.
In terms of cross-border e-commerce, Pinduoduo is innovating the full custody model to cope with the outbreak of consumer demand and layout the Black Week in advance.
5. Christmas and other overseas consumption nodes have helped more than 10,000 factories in more than 100 industrial belts in Guangdong, Zhejiang and other places to accelerate their going to sea.
As a platform that links consumers and merchants, Pinduoduo undertakes the responsibility of maintaining consumers and merchants and creating a higher-quality ecology. After all, only in a high-quality ecology can merchants have a better business environment and resource support, so as to provide consumers with better goods and services, and consumers will also get a better shopping experience. And for e-commerce platforms,How to protect the rights and interests of consumers and merchants, promote the positive development of the industry, and achieve a high-quality ecology is the key
Since the third quarter, Pinduoduo has actively deepened special activities such as the protection of minors, the governance and protection of books and other copyrighted goods. Strictly implement account identification, set up restrictions on minors placing orders, and strictly promote the review of books on the shelves, and the punishment of counterfeit stores, for example, the implementation of multiple stores "joint sitting" punishment, one of the stores with a license in violation of the rules, the multiple stores will be punished as the same store. In addition, since the beginning of this year, Pinduoduo has also actively cooperated with rights holders and third-party professional intellectual property institutions to jointly carry out intellectual property governance and strengthen intellectual property protection.
Whether it is the standardization of business requirements for merchants, the shaping of minors' correct consumption concept or the protection of intellectual property rights, it all demonstrates the construction of Pinduoduo's internal order, which will eventually become the long-term value of the platform and an important embodiment of Pinduoduo's sense of social responsibility.
These efforts in high-quality consumption, high-quality ecology and high-quality ** have not only allowed Pinduoduo to maintain its own high growth, but also allowed it to have more spillover capabilities, which also allowed them to zoom in and look far, and Temu was born on this basis
temu: pattern spillover and growth spillover
The high-quality development of Pinduoduo has made Pinduoduo's model more mature and perfect, which is the basis for the rapid development of the Duoduo cross-border temu platform. However, I think that the sluggish demand for traditional foreign trade and the low profits of the traditional foreign trade model also force foreign trade enterprises to urgently find a more innovative cross-border e-commerce model.
In order to solve the disadvantages of traditional cross-border e-commerce, Duoduo Cross-border has explored new models such as "full custody" and "flexible **" to help domestic and foreign trade enterprises in the core problems of operation, logistics and production.
"Full custody" is provided by the platform with one-stop services such as drainage, cross-border logistics, intellectual property rights, etc., to reduce the cumbersome process of operation logistics of the enterprise itself and reduce the cost of foreign trade enterprises in international logisticsThe "flexible" model reflects the value of the platform, which uses its own data processing capabilities and consumption trend observation capabilities to identify and aggregate consumer needs in different markets, help enterprises flexibly control the production end, and reduce storage pressure and cash flow pressure while responding quickly, so that the factory can truly achieve efficient operation.
Under the spillover influence of this model, Pinduoduo will also spill over its own growth, truly achieving "inclusiveness" and participating entities.
As the first batch of "post-90s factory second generation" to access Duoduo cross-border e-commerce, Liu Wenhai prepared about 25 popular hats with an average daily sales of thousands before this year's "Black Friday" promotion, each with 50,000 pieces, and also reserved some semi-finished products. The reason why he has such confidence is because he sold at least 700,000 hats during the "Black Friday" last year, not only emptied the warehouse, but also sold out all the old hats that his father had accumulated for more than ten years.
Sales growth is only one aspect, more important is the growth of profits, the traditional foreign trade order model pursues small profits and quick turnover, Liu Wenhai said that his parents only earned 5 cents for a hat at that time, and now every hat sold can earn 5 yuan, a hundred times the difference, truly "more sales and more profits".
In addition to sales and profit growth, what can really help the high-quality development of foreign trade factories is to rekindle the factory's confidence in the brand, and the real improvement of China's manufacturing industry is digitalization and globalization on the one hand, and branding on the other hand, and the realization of independent brand building can not only enhance market competitiveness, but also have greater bargaining power and profit margins.
It can be said that the high-quality platform construction has made Pinduoduo have a strong spillover ability, which not only allows Temu to develop rapidly and become an important engine for self-growth, but also Pinduoduo can spill over this growth to more subjects, making the entire ecology healthy.
Deepen the high-quality development strategy
Similar to the growth community with foreign trade enterprises created by TEMU, Pinduoduo's high-quality development is driving the formation of a greater potential energy.
First of all, the rapid development of Duoduo's cross-border business has driven the high-quality development of traditional foreign trade factories, from cost saving to simplifying the process to help foreign trade factories lower the threshold of cross-border e-commerce business, and secondly, different from the low-profit supply model of traditional foreign trade factories, they can directly face consumers on Temu, and their profits have also increased by tens or hundreds of times while orders have grown
Secondly, Pinduoduo continued to promote high-quality consumption this year, through preferential measures, united with 100 time-honored brands and domestic brands to launch the "Domestic Products Festival" activity, and achieved high growth of domestic brands through subsidies of 10 billion yuan, so as to promote the high-quality development of Chinese domestic brands
Third, Pinduoduo takes the "No. 1 Project" as an opportunity to continue to promote platform governance and improve user experience, actively carry out special activities such as the protection of minors, the governance and protection of books and other copyright goods, and promote the construction of a green, healthy and modern platform ecology, which is conducive to building a high-quality relationship between platforms, merchants and users
Most importantly, agricultural development is the characteristics and foundation of the Pinduoduo platform, and Pinduoduo has focused on the development of agricultural modernization, and the "Agricultural Cloud Action" has helped to create a more resilient and competitive digital agricultural belt, which will continue to provide users with high-quality agricultural products while driving agricultural industrialization and digitalization, and promoting the high-quality development of agriculture.
This kind of community is not only conducive to the rapid development and growth of brands, small and medium-sized businesses, and enterprise factories on the supply side, but also solves the demand for high-quality-price products on the demand side, and boosts the recovery of consumption in the current economic environment, forming a virtuous circle. At the same time, this spillover of high-quality development capabilities has allowed TEMU to take root and grow rapidly abroad, truly helping to build a dual-cycle system at home and abroad.
Editors: Chuck and Liu Bai.
Editor-in-chief: Shen Shuaibo.
Copy the collection of scribers.