In 2023, the e-commerce industry has ushered in earth-shaking changes. The former giant Alibaba suffered a sharp decline in market value, from a peak of 8 trillion yuan to just over 1 trillion yuan, a change that shocked founder Jack Ma, who urgently returned home from Japan. After Jack Ma returned to China, Alibaba's top management underwent a series of major personnel changes, including the replacement of the chairman and CEO, and even the company's strategic direction was completely adjusted.
In the past year, Pinduoduo and JD.com have performed exceptionally well in the e-commerce sector, with their market share directly surpassing half of Alibaba's. Especially in the first quarter of last year, Pinduoduo's performance was even more amazing, and its market share once exceeded Alibaba's 66%.
Looking back on the past 20 years, Alibaba has almost monopolized the entire e-commerce market, and Jack Ma is like a dreamer, pushing ** to an unrivaled position. However, ten years ago, JD.com, with its fast logistics strategy, quickly rose to prominence and formed a rivalry with Alibaba. At that time, the focus of the e-commerce market was almost entirely focused on the two giants, with both Liu and Ma seeing each other as the biggest obstacle in their path.
However, as the old saying goes, "cranes and mussels compete, fishermen profit", Pinduoduo used its extremely cost-effective product strategy and fission-style marketing methods to successfully achieve corner overtaking when the two giants were busy competing with each other.
Fission marketing is undoubtedly one of the most powerful strategies of all business models. It's amazing because it can quickly spread its influence and create a huge market effect. The following examples will vividly demonstrate the power of fission marketing.
In 1998, Shi Yuzhu was burdened with hundreds of millions of debts, but with only 500,000 yuan borrowed, he was ready to use the product of brain platinum to achieve a commercial counterattack. If business is compared to a game, then Shi Yuzhu undoubtedly played a wonderful reversal this time. The first thing he considered was product positioning, and he chose Jiangyin, a place where wealthy people gather, as a starting point. His first project was immediately launched.
Shi Yuzhu first took out 50,000 yuan to pay back wages to employees, and then asked them to constantly ask all pharmacies in Jiangyin about brain platinum, this continuous ** inquiry made the pharmacy owners confused, they didn't know anything about brain platinum, but as more and more people asked, their curiosity was also stimulated.
Next, Shi Yuzhu hired some elderly people and asked them to take empty brain platinum bottles and visit pharmacies one by one to ask if they were available. This behavior further deepened the confusion and curiosity of the pharmacy owners. For three weeks, the entire Jiangyin pharmacy owners were fascinated by the rumors of this mysterious product, and they began to inquire around, but they were never able to learn the truth about Brain Platinum.
Seeing that the time was ripe, Shi Yuzhu invested 150,000 yuan to produce brain platinum in a factory in Wuxi, and took the most crucial step: he hired a group of top copywriters and asked them to write two articles a day and read them aloud at marketing conferences. After several rounds of voting, several high-quality advertorials were finally determined. Subsequently, he invested another 150,000 yuan to buy the layout of the Jiangyin newspaper for nearly a month, and the remaining 150,000 yuan was used as a reserve fund. Through the continuous release of these advertorials, Shi Yuzhu slowly warmed up the target consumer groups. Two weeks later, Brain Platinum was sold out as soon as it was launched, and in less than a year, it achieved sales of 2 million yuan in Jiangyin alone.
Shi Yuzhu did not stop, he copied this model to Nanjing, and once again achieved sales of 20 million yuan. Subsequently, he entered the Shanghai market and gradually expanded to the whole country. Just two years later, the sales of brain platinum exceeded 1.3 billion yuan.
From an investment of 500,000 yuan to an income of 1.3 billion yuan, such a story is almost inconceivable for ordinary people, but Shi Yuzhu did it, all thanks to the power of fission marketing.
Therefore, instead of complaining about the poor economic environment, we should take the time to learn and understand the essence of the operation of these industries. As long as we can find the right business model that works for us, making money will be easy. A change in mindset can open up a new world in the market. Follow me and I will share more knowledge and wisdom about business.