As far away as Seattle, Hillary Clinton had a shopping list ready before the famous "Black Friday" sale began. However, she found that her friends around her always pulled her to form ** things.
Under the constant bombardment of friends and social **, Hillary decided to try this thief-making temu.
In the end, the total cost of six shipments, including socks, children's lip balm, plush toys, etc., was less than $20. It's not just Hillary Clinton who is obsessed with Temu, and the "Spelling the Door" believers have spread all over the world.
Breezy explainer In Japan, the amount of temu ** reached 4 million, which lasted 121 days;In South Korea, it took only 88 days for TEMU to reach 2 millionIn Europe and the United States, the number of temu has exceeded 100 million times, which lasted less than 11 months. In September last year, Pinduoduo launched Duoduo Cross-Border, or TEMU, which is commonly referred to by domestic Xi as the overseas version of Pinduoduo. In the past year, temu has quickly taken the world by storm, reaching more than 40 countries and regions around the world with selling points such as free shipping, gamified shopping, and crazy marketing campaigns.
Recently, Pinduoduo released its third-quarter financial report, although it did not disclose cross-border business revenue and other data, it can be seen that Duoduo cross-border has become a new growth engine for Pinduoduo's rapid development since its launch. Fast and steady
Duoduo cross-border is more powerful than you think
On the evening of November 28, Pinduoduo Group released its third quarter financial report, and as of the third quarter of September 30, Pinduoduo's revenue 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%。
However, many crooked nuts don't understand why temu products are so cheapTemu products are shipped from far away China, why can they still be shipped free of charge?Questions like these have been asked countless times on overseas social networks.
As everyone knows, when they began to cut and press the group, China's manufacturing industry belt has already been in full swing, and Duoduo cross-border has already brought the advantages of China's first chain to the extreme.
As of the end of the third quarter, Duoduo Cross-border has penetrated into more than 100 manufacturing industrial belts in Guangdong, Zhejiang, Shandong, Anhui and other places, and promoted high-quality manufacturing products into more than 40 countries and regions such as North America, Australia, Europe and Asia.
In Guangzhou, there are more than 5,000 garment factories of all sizes. At present, 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.
In the past two years, more and more traditional foreign trade enterprises have obtained new orders through the transformation of cross-border e-commerce. In this process of transformation and upgrading,How to change the original production line to match flexible orders, how to build its own brand and maintain the best competitiveness, has become the main pain point of foreign trade enterprises.
Duoduo cross-border "full custody", "flexible**" and other innovative models, which greatly reduces the cost of traditional foreign trade factories, so that thousands of factories in China's industrial belt can directly face consumers and create their own brands.
In the past, a traditional foreign trade enterprise may only have a 5 cent profit on a commodity, but now through Duoduo cross-border, you can earn dozens or hundreds of times the profit, settled in Duoduo cross-border merchants, not only regained orders, profits have generally increased.
The scene of the Duoduo cross-border booth at the 2nd Global Digital ** Expo. Photo by Zheng Yu As far as e-commerce is concerned, cost-effective goods are already the core competitiveness. However, if we can't find a balance between manufacturing costs and transportation costs, it is still difficult to meet the most sensitive groups.
In order to reduce the logistics cost of merchants, Duoduo Cross-border has also cooperated with world-famous shipping companies such as Matson, ZIM, CMA CGM, Maersk, COSCO Shipping, etc., to open up the shipping express channel to stabilize the soaring air freight rates, so as to achieve a shopping experience that can be free of shipping even if it is a single order.
In addition, Duoduo Cross-border also allows more small and medium-sized foreign trade enterprises to "easily" embrace the international market by simplifying the process of going to sea and lowering the threshold of foreign trade. Domestic and overseasare fighting for "quality-price ratio".
With the entry of emerging platforms such as TikTok and Temu, the competition of overseas e-commerce has intensified.
In this year's Black Friday, temu launched a "up to 90% off" discount during the official period of the event, and issued $100 and $200 couponsTikTok Shop offers a 20% 50% discount subsidy for participating merchants.
In any case, in just one year, Temu has become a "super player" in global business attention.
According to people familiar with the matter, Temu will once again appear at the Super Bowl in February 2024. Just like 618 every year, e-commerce platforms will inevitably attract more users after spending a lot of money on marketing.
Temu's debut in the U.S. Super Bowl For Pinduoduo, Temu on the left continues to be popular overseas, while on the right hand, it focuses on improving the quality of consumption in China and begins to seize the new growth point of high-quality consumption of Chinese people.
In September, Pinduoduo invested 1 billion yuan in a resource package, uniting 300,000 agricultural-related businesses on the platform and more than 1,000 agricultural production areas across the country to launch the "Duoduo Harvest Pavilion". Through tens of billions of subsidies, the platform has fully covered the agricultural and sideline products settled in the "Harvest Hall", including Xinjiang seafood subsidized for the first time, as well as high-quality local specialties such as Huili pomegranate, Huangshan stinky mandarin fish, and Zhouzhi kiwifruit that have been continuously supported for many years. Subsequently, Pinduoduo joined forces with 100 domestic and time-honored brands such as Anta, Yu Meijing, Wufangzhai and Xinghualou to launch a "domestic product festival" promotion for more than a month.
According to the data of the Pinduoduo platform, since the domestic goods festival, the sales of domestic brands on the platform, especially daily chemicals, beauty products and other products, have increased significantly. Among them, the single-day sales growth of Yumeijing children's cream reached 230%, 79 yuan** will sell 20,000 orders soon after it is launched;The sales of Vitality 28 have skyrocketed by more than 10 times, and many products have been sold outThe sales volume of bee flower care products increased by 50,000 orders in a single dayThe sales volume of Hua Loria's eyebrow pencil increased by 20,000 orders in a single dayTime-honored brands such as Xie Fuchun and Kong Fengchun have also doubled. In addition, Pinduoduo continues to invest 100 million yuan in official subsidies, superimposes the key resources of the "10 billion subsidy" channel, and unites hundreds of well-known domestic publishing houses and book companies to send 1,200 kinds and 6 million affordable genuine books to nearly 900 million users.
Recently, Pinduoduo donated more than 9,200 books to the primary school in Jimunai County, Altay Prefecture, Xinjiang. Chen Yihang: Regent consumption has entered a new stage of quality improvement, and high-quality consumption is inseparable from supply optimization.
In terms of agriculture, Pinduoduo has set up a special project of "10 billion agricultural research", through cooperation with domestic and foreign agricultural research teams, helping the transformation of cutting-edge scientific and technological research into practical application in agriculture, and launching a series of measures such as "Agricultural Cloud Action", it has continued to invest in optimizing the agricultural chain and the agricultural supply side for two consecutive years.
In the third quarter of this year, Pinduoduo's "Agricultural Cloud Action" has successively entered agricultural production areas such as hairy crabs in Jiangsu and fruits in Northwest China, helping the local area to build a more resilient and competitive digital agricultural belt.
Today, Pinduoduo has directly connected more than 16 million rural households and sold high-quality agricultural and sideline products to nearly 900 million consumers through the innovative "farmland cloud spelling" model.
During the harvest festival, Pinduoduo accelerated the upward movement of Huili pomegranates and promoted the villagers to increase their income and become rich. Photo by Li Li Facing the manufacturing industrial belt, Pinduoduo gave full play to its technological advantages and intensively launched a number of special activities focusing on the manufacturing industry, such as "Duoduo New National Tide", "Duoduo New Craftsman", and "Duoduo Overseas Support Plan", and went deep into more than 100 manufacturing and rural handicraft industrial belts to help traditional enterprises and manufacturing factories transform and upgrade, and realize the reintegration of digital technology and traditional manufacturing.
Promoting the upgrading of the supply side and creating a "hot model" by technical means, so as to enhance the scale effect of the industrial chain, is the "long-termism" strategic determination that Pinduoduo adheres to.
Behind the "long-termism" is the continuous investment in R&D expenses. According to the financial report, in the third quarter, the R&D expenses of the Pinduoduo platform reached a new high, reaching 28500 million yuan, a year-on-year increase of 55%。Pinduoduo whyCan Pinduoduo be successfully copied?
After more than 20 years of development, China's Internet has given birth to a large number of outstanding Internet technology companies. The products that are truly international and compete with industry giants on a global scale are TikTok and Temu.
Temu's success is the same as Pinduoduo's. From China to the sea, why can Pinduoduo successfully replicate Pinduoduo?
In fact, no matter how long and endless this question is, it may not be able to truly tell the true meaning. Referring to the history of all Internet products going overseas in the past, there is no precedent for the success of Chinese experience.
Aside from all the top-level strategic and tactical parties**,The continuous counterattack of Pinduoduo and Temu proves at least one point:
Regardless of geography and national boundaries, the "quality-price ratio" is the common mind of consumers when shopping.
The cheap goods of traditional e-commerce have always existed, and in the cracks of the battle between giants, why can a new national top stream be born?
Perhaps, the answer lies in:
There is never a static business model, only continuous innovation and ultimate experience that constantly meet the needs of users.
For example, as low as 1 yuan can also be free shipping, and the system detects the user's intention to return the product and directly pops up the refund window, which is an innovation that traditional e-commerce platforms do not have, bringing users an unprecedented ultimate experience.
As Chen Lei, chairman and co-CEO of Pinduoduo Group, said, "We see from user behavior that consumption upgrading is not only about quality, but also about quality, it is the optimization of 'quality-price ratio', and it is the ultimate pursuit of consumers for high-quality and good products." ”
I believe that as long as we can deeply penetrate the ** chain and grasp the killer feature of technological innovation + ultimate experience, Pinduoduo and Temu can go further.