** Dongge interprets the e-commerce author |Li Chengdong, Jin Shan.
Question Pinduoduo, understand Pinduoduo, and become Pinduoduo.
In the past year, domestic e-commerce first started a first-class war to attract small and medium-sized businesses, and then began to roll up services in logistics and refunds. In terms of going overseas, Temu's first fully managed model has also attracted follow-up from other platforms. Suddenly, Pinduoduo became the object of e-commerce research and emulation. But it seems that if you want to complete a Pinduoduo-style counterattack, it is not easy for latecomers to catch up.
Why is it difficult to be surpassed by Pinduoduo, which e-commerce is learning?
Pinduoduo counterattack
In the past, there were always people who felt that Pinduoduo users were too low-end, selling low-priced products, and they couldn't get up. But when Zhang Lei of Hillhouse Capital invested in Tencent, he said that he had a very interesting point. They did research and found that Yiwu small bosses are using QQ, he said that QQ is three low, low age, low education, low income, WeChat is the mainstream user. But QQ won't stay still all the time, and so is Pinduoduo.
The iteration rate is fast and efficient, which is the scary thing about Pinduoduo.
Pinduoduo started a counterattack of "rural areas surrounding cities". According to the National Bureau of Statistics, the proportion of online retail sales increased from 107%, an increase to 3272%, constantly penetrating. In this process, Pinduoduo's social scene has reached more people, including users who are in contact with e-commerce for the first time, which is a pure user increment for the e-commerce industry.
Pinduoduo does not have its own stores on the main site, and the matching of traffic is more fair and efficient.
Now the whole line penetration is gradually coming to an end. The overall supply of e-commerce exceeds demand, and service capabilities have become the key to competition.
One of the obvious trends in e-commerce in 2023 is that only a business that pleases consumers will last. Obviously, Pinduoduo realized this earlier.
Some people say that Pinduoduo is indeed very good, but other e-commerce platforms are not so weak, and it may only be a gap between 80 and 90 points. Can Pinduoduo really continue to lead? But he forgot one thing, just like our college entrance examination, you are one point apart, thousands of people are separated, you are 5 points apart, others are the focus, you are the ordinary focus, and the difference of two points is thousands of people. I can do the services done by Pinduoduo, and it doesn't seem to be that big of a gap. But this is not the case, if the gap persists, there will be a noticeable change in share.
Xinmaobang, the data is for reference only.
It can also be seen from the order volume and transaction volume that users are voting with their feet.
In 2023, online retail sales will reach 1543 trillion, a year-on-year increase of 119%。In 2023, the express delivery business increased by 19% year-on-year4%。The growth rate of logistics is faster than the growth rate of e-commerce, which means that the unit price of express delivery is going down, and the share of orders with quality-to-price ratio such as Pinduoduo is rising.
According to the data on transaction volume, orders and customer unit value through industry research, Pinduoduo's GMV in 2023 will be 4,045.1 billion yuan, a year-on-year increase of 31%, ranking second in the 2023 Xinmao list. Compared with last year's TOP e-commerce platform, the average growth rate was 120%。
China's top 10 e-commerce orders, and the number of daily express orders in December 2023 ranked among the top 10 e-commerce logistics orders, accounting for 87 of the total daily logistics distribution orders7%。Pinduoduo 1100 million units ranked first.
From not being able to understand it, the traffic and supply behind Pinduoduo are constantly iterating. From the ultimate quality-price ratio to the service capability of the platform, Pinduoduo's model has become the object of imitation by e-commerce. Jumping out of the domestic involution market, overseas has brought greater imagination to Pinduoduo.
The future of China's Internet companies is not to grab the stock market among China's 1.4 billion people, but to grab the market of Amazon and Facebook in the United States among the world's 8 billion people.
We talked about BAT in the past ten years, Ali and Tencent in the next ten years, and in a few years, we may talk about bytes and Pinduoduo. Companies that compete for business in the global market will replace Alibaba and Tencent in the next decade.
In Dongge's annual speech, many audience members also expressed their views on Duoduo's cross-border, "Chinese companies are very competitive when they go overseas. A friend who works abroad told me that their colleagues are using Pinduoduo products, which is going viral, and I am very optimistic. ”
From January to November 2023, temu's largest volume in major markets around the world has grown strongly, and it has topped the list of app stores in the United States, Europe, the Middle East and other regions for many times.
From its launch in September 2022 to the present year, Duoduo Cross-border has been launched in more than 40 countries in one year and two months, with a ** volume of more than 300 million, an annual GMV of 14 billion US dollars, a daily order volume of 2.5 million orders, a number of SKUs of 4 million, and an average unit price of 25$7.
Why is Duoduo cross-border so popular overseas? Mainly because the Duoduo cross-border model solves the problem of cost-effective supply and inventory.
The overseas e-commerce market has unlimited potential in the future, and the model of mainstream e-commerce platforms such as Amazon determines the lack of more cost-effective goods, and there is a gap in the market.
For the supply side, merchants do not need to be familiar with foreign languages and platform rules to directly enter the warehouse of the platform. It lowers the threshold for merchants to go to sea, so the problem of supply is basically solved.
Amazon's upstream supply is the preferred ** chain, and among the hundreds of millions of SKUs in China, more than 100,000 merchants have moved millions of SKUs to Amazon. Why is temu a little faster? Now there are not so many SKUs, because I have warehouses in China, in thousands or millions of factories in China, I can pick and screen out the best-selling products.
Because of the high logistics costs, a large number of cost-effective goods were restricted and did not come into contact with the American market.
Amazon doesn't make much clothing because clothing changes too quickly, and demand changes on a weekly basis. Europeans and Americans actually wear a relatively single dress, Chinese wear very fashionable, this is because of the problem of supply, Chinese production and manufacturing is very convenient, all kinds of fashion will have.
On the other hand, the core issue of whether retail can make money is to solve inventory loss. Behind the fact that many cross-border merchants make money is the advantage of flexible chain and small order fast response. Temu, Shein, and TikTok e-commerce are centered on China's ** chain, and the cost performance is the killer feature, which will surely kill all parties.
People who do Amazon in the United States are particularly worried about the problem of not being able to sell, and the warehouse will charge a particularly expensive rent, and it will be scrapped if it cannot be sold.
Just like Sam's Club, there are more than 40 stores in China, there are about 500 front warehouses, and there are five or six hundred best-selling products, which can greatly improve logistics efficiency in front warehouses, from 7 days to 4 days, and the fulfillment fee is reduced to US dollars, and the efficiency of the chain is faster.
The global wave of e-commerce has just begun, and China's penetration rate is about 30%, while the penetration rate of other countries is still relatively low.
There are opportunities and risks in going overseas, and many people want to use the experience of Chinese e-commerce to go overseas to reduce dimensionality, which is not entirely feasible. There are some noteworthy issues in terms of geopolitics, protection policies, compliance, and innovation.
Take small steps and try first. Diversify your risk and do more countries. Be in awe of the market and don't mess around. From the very beginning, we must pay attention to compliance, and overseas markets cannot be opportunistic. Global thinking, down-to-earth business, first win user satisfaction.
Whether it is domestic or overseas, the future competition of e-commerce will eventually return to the efficiency of the first chain.
And Pinduoduo's human efficiency has always been at the forefront of Internet companies. According to the statistics of the financial report, Pinduoduo has more than 10,000 employees, and its revenue in Q3 of 2023 will be 68.8 billion yuan, an increase of 94% year-on-year; operating profit was 16.7 billion yuan, an increase of 60% year-on-year. Revenue and profit achieved rapid growth at the same time.
Although it has become a general trend for e-commerce platform to stand consumers, it is still merchants who really serve consumers. In the future, a platform with sustainable competitiveness will definitely be able to make merchants profitable. Pinduoduo is also constantly investing resources for merchants to ensure the sustainable development of e-commerce. In 2023, Pinduoduo will launch a 10 billion ecological project, provide assistance funds to tilt resources to high-quality merchants, promote the high-quality growth of small and medium-sized merchants, and gradually improve the overall service efficiency and quality of the platform.
In terms of overseas, Duoduo has launched a semi-custodian business across the border. Unlike full custody, merchants can take responsibility for warehousing and fulfillment. Merchants who have inventory in Amazon warehouses and overseas offline physical warehouses will get new sales channels.
In 2024, e-commerce will be more involuted, and chain efficiency will continue to become the core competitiveness. Pinduoduo is making e-commerce extremely efficient.