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** 007 of the brand world
Author 007 of the brand world
It seems that since last year, the changes in the e-commerce industry have not stopped. Recently, a piece of news has caused heated discussions in the industry - Ali has lost the top spot in e-commerce, and the market value of Pinduoduo has become the first in the industry.
Three years ago, no one would have believed this incident, everyone would only laugh and joke, and the iron mouth bluntly concluded that "it is fake news".
However, now, people are surprised to find that ** can't do Pinduoduo, and the possibility of the younger brother killing the boss is becoming a fact.
Source: Pinduoduo official WeChat.
After all, there were signs at the end of last year. The data shows thatPinduoduo will achieve a total revenue of 688 in Q3 2023400 million yuan, a year-on-year increase of 939%, and the sales of its cross-border e-commerce platform Temu also exceeded 5 billion US dollars.
As Pinduoduo bucked the trend and emerged, a number of international investment banks immediately gave optimistic ratings. Da Mo directly pointed out that at the moment when the most sensitive factors are becoming more and more sensitive, Pinduoduo is currently in the best position and is listed as the first choice in China's e-commerce field.
From being "born at the bottom" to reaching the top of the industry, Pinduoduo's "life road" seems to have not been long away.
I still remember that back then, it was popular per capita across the country"Chop".。Although it must be admitted that the rapid rollout of Pinduoduo is indispensable to Tencent's "WeChat withdrawal", the main reason behind it is the overall economic downturn, which is what Morgan Stanley called "**sensitive".
The term economic downturn has actually been coined for several years. People's consumption concepts are also quietly changing in this context, from the pursuit of brands to more cost-effective.
In the past few years, a number of small and beautiful e-commerce platforms have appeared one after another, such as NetEase Yanxuan, Necessary, etc., Pinduoduo was born in this context.
But just like the same rice raising hundreds of people, the same soil environment, why only Pinduoduo has succeeded in taking the position? This answer must be clearer than one by one to the e-commerce giants, but they can't do anything about it
There was a picture on the Internet that was particularly popular before, Pinduoduo punched the master to death, and he relied on price reduction and only refunds to defeat all "differentiated, structured, and refined methods**".
Worried about buying a fake? ”
It doesn't matter, we can just refund you! ”
Worried about quality? ”
It doesn't matter, we can just refund you! ”
Completely stand in the user's position and set consumption rules, giving consumers a sense of security. So much so that after some comparison, people found that compared with Pinduoduo, it is both affordable and simple.
For example, every year on Double 11, ** will always launch a variety of preferential policies, such as the first order reduction, coupon superposition, and cross-store ......full reductionIt seems that the preferential policies are so strong, but in the end, it is not less than a few dollars, and it is a waste of time and money. Although the reform was announced early this year, the landmark action is to cancel the Double 12 and change the name to the "Year-end Good Price Festival", but a little research can find that it is just a change of soup and no change of medicine, which is useless.
Relatively speaking, Pinduoduo seems to be a lot more. I won't tell you this or that, I'll tell you that it must be cheap to come to me! The cheapest is not guaranteed, but it is guaranteed to be cheaper!
In the face of the overall downgrading of consumption in society, no one thinks things are too cheap. "For the same product, you can buy it for 600, why should I spend 800? There are also a lot of preferential terms to memorize. ”
In order to stick to the low price, Pinduoduo is even willing to put up with the impact of bad reviews.
I've heard of it before, and there are users in Pinduoduo 99 shipped a box of oranges for free, but when I received it, the oranges were already half rotten, so the user immediately gave a bad review.
But the weird thing is that this user has been insisting on bad reviews, but he insists on continuing to shop on Pinduoduo. Why is that? Because even if a box of oranges is half rotten, the remaining oranges are 99. Free shipping is still very cost-effective.
In Pinduoduo, the low price of goods is the first priority, and other criteria can be placed in the back row.
Source: Pinduoduo official WeChat.
From a formal point of view, Pinduoduo directly ignores the demands of merchants, stabilizes users, and defeats the redundancy and cumbersomeness of ** with a simple and crude consumption model, but in fact, it is behind itThere is a huge difference in business philosophy and revenue approach
Currently,Although one of the major benefits of Pinduoduo is still advertising, it is much lower than **。According to this logic, with such a huge sales volume, Pinduoduo's monetization ability as an e-commerce platform is far inferior to **, doesn't it mean that Pinduoduo's operation strategy is not doing well?
No, that's exactly what makes Pinduoduo stand out. After all, the advertising cost of the e-commerce platform falls back to the merchants, and the advertising earns less, so that the merchants' best can come down.
At this point, the logic of ** and Pinduoduo is different.
Source: **Official website.
We all know that in today's Internet world, BAT has a firm grasp of traffic. **As an e-commerce platform, it will gather a large amount of shopping traffic.
What we have seen is that behind the vigorous promotion of live streaming, it is actually through the mechanism of big data traffic distribution to raise the traffic cost as a whole, and by shortening the chain, various online costs are directly added to the business.
Even so, there are still big brands willing to go to ** instead of Pinduoduo, because Ali is more friendly to merchants and will balance the interests of merchants and users to maximize their interests. Pinduoduo, on the other hand, will pull down the brand premium.
But this is only for brand sellers, for most small and medium-sized merchants, if they want to continue to make money, they need gross profit support to continue to pay for platform advertising costs, and users can only buy goods with better **.
It may not sound like a virtuous cycle.
You know, in the next few years, consumption downgrade will be a long-term trend, when everyone's hands become less abundant, "refund only", "million subsidies", "spelling" will be to people's taste.
After all, the recent new singles players also feel thatThe low price and high cost performance are so fragrant!
It should be noted that Ali is now in a very dangerous situation. The core competitiveness of e-commerce is never in technology, but in the platform itself, that is, the degree of platform scale.
The ultimate purpose of platformization is to retain and convert users. In other words, what Ali should do is to do the same as Pinduoduo, trying its best to retain users, instead of hovering left and right between merchants and users.
According to the current trend, for Ali, the worst situation is not that Pinduoduo catches up with Ali, but that it quickly widens the gap with Ali after surpassing.
You know, Pinduoduo's current momentum is booming. The convenient return method and the low-price strategy are simply invincible to the platform, and the current trend has been confirmed in overseas markets.
In the third quarter of this year, Pinduoduo's brightest performance report was not even the domestic e-commerce business, but the revenue of the overseas platform Temu, which showed that Temu's sales exceeded $5 billion, an increase of more than 300% year-on-year.
Seeing that Pinduoduo's overseas market has been on the rise as in the early stage of domestic development, and as a traditional e-commerce, Ali has not yet found the key to breaking the game, and there is probably not much time left for it.
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