Pinduoduo was founded in 2015, which is a much shorter history than JD.com and Alibaba. However, in just the past eight years, Pinduoduo has surpassed JD.com and Alibaba in terms of user numbers, becoming the largest e-commerce platform in China by user base. This is enough to show the huge potential of Pinduoduo. The rapid development of Pinduoduo is mainly due to its unique model and social sharing promotion methods, which have attracted a large number of users to join and buy.
At the same time, Pinduoduo has also actively expanded its market and entered the rural market, and has achieved great success. In China's rural areas, there is a greater effort to upgrade consumption, and there are relatively large numbers of people engaged in agricultural production, which provides a broad opportunity for the Pinduoduo rural market. Pinduoduo's low-price strategy coincides with the sensitivity of rural users to **, so it has achieved great success in the rural market.
In addition, Pinduoduo's development strategy is also one of the keys to its success. Pinduoduo has seized the opportunity of the mobile Internet era and relied on the fission effect of social platforms to rapidly expand the number of users. By introducing welfare activities such as coupons and red envelopes to attract users to share, a fission communication mode between users has been formed, so as to quickly accumulate user groups. Pinduoduo has grown faster than many people expected, but in fact, its success is not accidental, but based on a scientifically sound strategy.
Pinduoduo's successful listing in the U.S. capital market is an important reason why its market capitalization surpasses that of Alibaba. In the capital market, investors are more interested in the company's future development potential, not just the existing revenue and profits. Pinduoduo has become the largest e-commerce platform in China in just a few years, and its development potential cannot be ignored.
Investors believe that Pinduoduo still has huge room for growth in the future. Although Pinduoduo's current profits are not high enough, in the eyes of investors, as long as the number of users is enough, the company can increase revenue by increasing the average customer value and optimizing the brand image. It is believed that over time, Pinduoduo can gradually solve these problems and achieve profitability. And Ali and JD.com also faced similar problems in their early development, and they also came step by step. Now that Pinduoduo has laid a good foundation, I believe that the future development will be more rapid.
Pinduoduo has not only achieved success in China, but has also grown rapidly in overseas markets. The overseas version of "temu" launched has been loved by the majority of overseas consumers, and it has developed very rapidly, which has begun to threaten Amazon's position. Pinduoduo's successful experience in the early stage of domestic development has also played an important role in overseas markets. Pinduoduo's ** and social sharing models have also been welcomed overseas, providing strong support for the development of its overseas markets.
The rise of Pinduoduo in overseas markets has sparked concern and anticipation, with many believing that Pinduoduo is expected to pose a threat to global e-commerce giant Amazon. Alibaba and JD.com are China's local e-commerce giants with relatively little influence in overseas markets, and the rapid development of Pinduoduo will make it possible for Chinese e-commerce to compete for a larger share of the global market. Therefore, this is also one of the reasons why Pinduoduo's market capitalization exceeds that of Alibaba.
In addition, Alibaba's market value only represents its e-commerce businesses such as Tmall**, while its cloud computing, Cainiao Network, Alipay and other businesses are not counted in Alibaba's market value. In contrast, Pinduoduo's market capitalization is a more comprehensive reflection of the company's overall strength and potential. Therefore, Alibaba's market capitalization is relatively undervalued, which is also one of the reasons why Pinduoduo's market capitalization exceeds Alibaba's.
To sum up, it is not surprising that Pinduoduo has surpassed Ali in terms of market capitalization. Pinduoduo has managed to surpass traditional e-commerce giant Alibaba thanks to its rapid growth, the capital market's emphasis on future potential, and its rapid rise in overseas markets. It is worth affirming that Pinduoduo has brought rich returns to the majority of investors with its innovative business model and rapid development speed. For Pinduoduo's market capitalization to exceed Alibaba's, we should see the cleverness and foresight of the capital market, rather than questioning and ridiculing. In the future, Pinduoduo is expected to continue to maintain the momentum of rapid development, bringing a more diversified and competitive pattern to China's e-commerce market.