The performance of the third quarter soared nearly doubled, and the market value once surpassed Alibaba, and the Pinduoduo phenomenon in the retail industry this year, as well as the Pinduoduo fever, should trigger the thinking of all home appliance practitioners. It is not to learn to Xi Pinduoduo and become Pinduoduo, but to gain insight into the market and consumption changes behind the Pinduoduo phenomenon and find the ice-breaking direction of home appliances.
Wen Jian||Written
Is low price the only bargaining chip in Pinduoduo?In addition to fighting low prices, what other capabilities does Pinduoduo have?Strong execution, extreme efficiency, or other hidden secrets?Question Pinduoduo, understand Pinduoduo, become Pinduoduo, and surpass Pinduoduo ......
In recent days, the release of Pinduoduo's third-quarter results has quickly sparked a heated discussion among the entire commercial retail industry. Especially after benchmarking the performance and number of employees of Alibaba, JD.com and Pinduoduo, many people in the retail circle bluntly said that they began to "understand Pinduoduo".
Since the end of last year, with the return of Liu Qiangdong, Jingdong has begun to "become Pinduoduo", including the launch of the 10 billion subsidy platform, and the lowest price of the double 11 network, all of which are coping moves after a deep understanding of Pinduoduo. Similarly, in the face of Pinduoduo's third-quarter results, Ma Yun, the founder of Alibaba, recently congratulated Pinduoduo on its decision-making, implementation and efforts in the past few years, and also publicly stated that "Ali will change, Ali will change", releasing the ambition of "surpassing Pinduoduo".
In this regard, the home appliance circle believes that for all practitioners in the home appliance industry, paying attention to Pinduoduo and studying Pinduoduo is not to become Pinduoduo. Rather, it is necessary to gain insight into the changes in the mainstream consumer demand of the current first-tier market through the Pinduoduo phenomenon, grasp the huge user needs and ideas carried on the Pinduoduo platform, and focus on how the online e-commerce platform can better meet and win users.
Pinduoduo's performance is indeed eye-catching
Pinduoduo's financial report for the third quarter of 2023 shows that the company achieved revenue of 688400 million yuan, a year-on-year increase of 939%, and GAAP net profit was 1553.7 billion yuan, a year-on-year increase of 47%, and the net profit margin was 226%。
During the same period, Alibaba's revenue was 2247900 million yuan, a year-on-year increase of 9%, and the operating profit was 3358.4 billion yuan, a year-on-year increase of 34%;JD.com's revenue was 247.7 billion, a year-on-year increase of 17%；Operating profit was 9.3 billion, compared with 8.7 billion in the same period last year, a year-on-year increase of 68%。
It can be seen that from the perspective of revenue growth rate alone, Pinduoduo's performance in the third quarter is quite "eye-catching" compared with Ali and JD.com. The former saw revenue growth in close to the triple digits, while the latter two saw single-digit revenue growth. What's more interesting is that wind data shows that as of the end of September this year, the number of employees in Pinduoduo remained at 1There are about 30,000 people, only 1 18 of Ali and 1 35 of JD.com.
Of course, behind Pinduoduo's eye-catching revenue growth in the third quarter of this year, there are mainly two major driving forces: first, the first is the first marketing service (e-commerce advertising) revenue of 3968.8 billion yuan, a year-on-year increase of 39%. The second is transaction revenue (mainly the overseas cross-border platform temu) revenue of 2915.3 billion yuan, a year-on-year increase of 315%.
Through Pinduoduo's performance in the third quarter of 2023, and comparing the situation of peers such as Alibaba and JD.com, many people have given the view that Pinduoduo has become the biggest business platform winner under the consumption downgrade. Correspondingly, compared with the other two e-commerce platforms, Pinduoduo brings users an experience of "simple buying, easy returning;Less routine, more affordable".
Although Pinduoduo's revenue growth is fast and strong, there is still a big gap between it and Ali and JD.com in terms of revenueSimilarly, in terms of the texture and level of business operations, many merchants and users who consume on the Pinduoduo platform and open stores are reluctant to take the initiative to mention this platform;In addition, whether Pinduoduo participates in overseas markets in China or exports, it relies on the low-quality "one trick".
Behind the controversy of all parties, in the view of the home appliance circle, focusing on Pinduoduo, there are two questions that have to trigger the thinking of home appliance manufacturers: First, as an e-commerce platform, Pinduoduo's performance growth rate is higher than that of Ali and JD.com, what is the power behind it?At a time when peers are also making efforts in overseas e-commerce, why is Pinduoduo growing so fast and so fierce?Can the home appliance industry take advantage of the trend?Second, as a synonym for low-price consumption, why can Pinduoduo gain insight into the trend of downgrading household consumption in recent years, and how can various platforms grab the first place in the competition through low-price orders?
Pinduoduo in the eyes of home appliance people is very complicated
In the eyes of many home appliance manufacturers, the low-cost e-commerce "Pinduoduo" in recent years is a complex role and positioning, not to mention love but a lot of hate. The reason is that "Pinduoduo shipments are okay, but it is difficult to make a lot of money if you can maintain food and clothing with all the best machines and bargains".
In the eyes of some home appliance people, Pinduoduo's achievement does not have much value. First, there are still many counterfeit and shoddy household appliances on the Pinduoduo platform, which is nothing more than a low price;Second, the Pinduoduo platform is completely low-cost shipments, with no brand value and experience at all;Third, Pinduoduo went overseas and achieved good results, which also won with low prices, overdrafted and damaged the profits and foundation of upstream brands and manufacturers in the industrial chain. Even, some home appliance industry insiders bluntly said that the home appliances sold on the Pinduoduo platform are basically specially customized bargains, with both function and performance reduced.
It is precisely for this reason that Pinduoduo has been similar to "chicken ribs" in the eyes of many home appliance companies and dealers in recent years. However, since last year, it has suddenly been popular among many home appliance manufacturers: on the one hand, Pinduoduo only does retail, no wholesale business, relatively speaking, it is the best interpretation of "you get what you pay for";On the other hand, Pinduoduo's shipping capacity has suddenly improved, especially since this year, many major brands of household appliances have begun to fight for Pinduoduo through operators and first-class merchants to increase shipments.
For the Pinduoduo platform itself, the home appliance circle believes that relevant home appliance manufacturers do not need to question or understand, but from their own perspective, position, and ability, insight into the new changes and trends of the first-line market and users, so as to make a proactive response. In addition to low**, what other sense of identity and comfort do users have for Pinduoduo?
For example, under the downgrade of consumption, how can big brands of household appliances release more new responsibilities, and work with e-commerce platforms to push up the consumption threshold of household appliances, so that fake and inferior products disappear, and good goods have more competitive advantages. These need to take the initiative to explore and layout, not to let Pinduoduo change the home appliance industry, but to let home appliance companies and Pinduoduo change the market and consumption together, so that the new connotation of excellent quality is injected behind the low **. I believe that this is also the key direction that Pinduoduo needs to transform.
At the same time, in the face of the current and long-term changes in household consumption, as well as the competitive pattern of the home appliance market, the traditional online and offline retail of household appliance enterprises, as well as digital transformation, and even the online batch model of specialty stores and sinking channels, how to change and adjust, all require a unified layout and thinking. Do many home appliance companies need to expand the offline physical store system, and do many home appliance dealers have any other way out in addition to offline stores and franchise platforms?There is no standard answer to these questions, but they certainly can't wait for the answer, and they must rely on the manufacturer's own exploration and trial and error.
What's more interesting is that in the home appliance industry, in the face of Jingdong and Ali have increased the offline market, retail and wholesale business are grasped with both hands, but Pinduoduo has been sticking to the retail model of the online platform, and finally the retail link and efficiency on the home wire are achieved to the extreme, so that users can feel the low price and convenience, and also let the company maintain a certain scale of shipments. In the future, whether Pinduoduo will get involved in the wholesale business of home appliances, and whether it will open up the online platform to attract offline dealers to join, will be a highlight and inflection point.
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