With the maturity of network technology, the digital lifestyle has gradually penetrated into all walks of life. The e-commerce industry, which relies on the development of network technology, has gradually changed people’s lifestyles. Traditional offline shopping methods can no longer meet the shopping needs of modern people. The convenience of online shopping is more suitable for the pace of life of modern people, and the group participating in online shopping is also growing. The e-commerce platforms that appeared earlier took up most of the market share, and many e-commerce companies were eaten up by market shocks. Since the listing of Pinduoduo in July 2018, it has caused a big impact on the e-commerce market. The “barbaric” e-commerce dark horse has caught Jingdong Ali by surprise, and the turnover of 600 million users has reached 100 billion!
In March 2020, Pinduoduo officially released its results for 2019. According to the data disclosed by Pinduoduo, the amount of Pinduoduo’s turnover in 2019 has exceeded 1 trillion. Yuan, this result has more than doubled compared to 2018. The current number of active users of Pinduoduo is about 600 million, which has greatly exceeded the number of active users of JD.com and will soon overtake Ali. In just a few years, why did Pinduoduo achieve such great results? Mainly because of the marketing model of Pinduoduo crazy spending money. In order to attract customers, Pinduoduo promised to give users the lowest price on the entire network. This slogan quickly attracted a large number of users. Most of these mad influx of users’ purchases are high-life consumables. The first demand for purchases is to be cheap, and users who have been attracted by the”patch order” mode generally have low spending power.
The low-price sales strategy has resulted in low thresholds for merchants to enter the website, the quality of the products is generally poor, and consumers who buy” cottage goods”often complain. In order to ensure the quality of the products on the website, Pinduoduo launched a”ten billion subsidy” campaign in June 2019. This time, the”ten billion subsidy” promised a penalty of ten for all products. Pinduoduo used the fake one penalty ten rule to give users a reassurance, and the prices of all participating products have fallen sharply. With the help of”ten billion subsidies” and pin order discounts, many people have come from the circle of friends The news came, resulting in a short-term surge in downloads of Pinduoduo.
The discount amount of this event is not much different from Taobao ’s” Double Eleven”. In the last two quarters of 2019, Pinduoduo did spend tens of billions. Subsidy costs. Most of the products participating in this”10 billion subsidy” event are well-known brands, and the promotion activities of these world-renowned brands soon attracted some high-spending people. Many users have begun to try to buy expensive technology products at Pinduoduo, and the user response is generally high. In this outbreak, Pinduoduo also opened a commodity zone for”anti-epidemic agricultural products” for farmers to ensure farmers’ income in the outbreak. In the past, Pinduoduo focused on markets in third- and fourth-tier cities. Today, Pinduoduo has completed the sinking of the market in first-tier and second-tier cities, and the”Pinduoduo” trading model has become increasingly popular.
Although this profit-making model has won a lot of users for Pinduoduo, Pinduoduo has always been losing money. Obviously what Pinduoduo needs to do now is to occupy as much market share as possible. Only in this way can it survive the attack between Ali and Jingdong. In this era of 5G Internet of Everything, the battle between e-commerce companies will become more intense! Do you think it is possible that Pinduoduo will surpass Ali and Jingdong?