With the disclosure of Pinduoduo’s annual report, the stock price once rose. Forbes’ real-time rich list shows that Pinduoduo founder Huang Zheng’s net worth has reached 45.4 billion U.S. dollars, equivalent to RMB 321 billion, successfully surpassing Jack Ma to become China’s No. 1 billionaire. The two richest men.
How did Huang Zheng lead Pinduoduo to emerge from the e-commerce giants Taobao and JD.com, carve a bloody path, and form the current three-legged e-commerce situation?
01 Go deeper into the market and find the right user groups
It is not easy to stand out from the mature and stable e-commerce giants that have been operating for many years. For a similar product to be successful, it needs to be differentiated to be successful, and Huang Zheng differentiates directly on users.
Taobao targets students and white-collar workers, JD.com strives for quality and logistics, and Huang Zheng directly targets ordinary people in daily life. They may be aunts in rural areas. They may be frugal in order to take root in the city. Ordinary citizens, but they have one thing in common: buying cheap and affordable things.
In China, there are too many such groups. They can buy houses worth tens of thousands per square meter, and they can also buy paper towels with free shipping for 9.9 yuan.
Wang Xing of Meituan once commented on the Pinduoduo phenomenon: China is really too big, so big that you would think that an entry-level hair dryer starts at 200 yuan, and even a sophisticated lady would spend 2,000 yuan on a Dyson. But in fact, more people are still using 20-yuan off-brand hair dryers, which last 20 years.
This is the advantage of Pinduoduo. In terms of user positioning, Huang Zheng is very good at it.
After identifying the target users, it is necessary to reach them. How to quickly let them know about Pinduoduo is very important, because in today's capital-ridden world, if it is a little later, the market may be occupied by others.
02 Brainwashing advertisements and annoying spelling and slashing
Since then, brainwashing advertisements and annoying spelling and slashing have penetrated into everyone’s life.
At this point, Xiaolu hummed silently? Pinduoduo, Pinduoduo, the more you fight, the more you save, even though he has heard the advertisement now.
But when Pinduoduo was expanding crazily, it could be said that it was all over the streets, alleys, and shopping mall elevators. It was simple and magical.
With brainwashing advertisements, Pinduoduo exists silently in the minds of millions of users.
In July 2016, Pinduoduo received US$110 million in Series B financing from investment institutions such as Tencent, Gaorong, and Xintianyu. Pinduoduo started a simple and crude business through WeChat, which has over 1 billion active users worldwide. The fission of Pinduoduo’s fission links flooded the entire WeChat ecosystem.
Buy a group for more discounts!
The original price of fruits is tens of yuan, but now it only costs 9.9 yuan. Share it in the WeChat group to order together, and then it will be reduced to 8.9 yuan, and shipping is free!
Chop me, take the product home for free, chop me if you are a brother, chop me if you love me...
Get a free mobile phone, the first chop If you cut off a few hundred yuan and share it in the WeChat group, you can cut off a few hundred more. Within 24 hours, get a 0 yuan mobile phone with free shipping to your home.
Will you forget if you chop and chop? No, Pinduoduo will push reminders after a while? There are xx hours left, so hurry up! ?,?There are still xx hours left, and you have already cut off xxx blocks. If you don’t cut off this xxx block, it will be gone! ?
You helped with the bargaining. I took a look: You can also bargain. Here is 800 yuan that belongs to you. If you don’t take it, you won’t get it. Okay, let me give it a try...
With this simple and crude fight and cutting, Pinduoduo has achieved explosive growth.
Investor Zi Liu once said: Pinduoduo is a product worth studying carefully. Many of its functions are directly touching people's hearts.
a. When new users log in, they will be given a red envelope first, but they can only receive it after sharing.
b. Many products say that a group can be formed when there is only one person left. However, after purchasing, you will be reminded that you need to recruit one more user.
c. Many new products are launched every day, and the first person to initiate a group purchase is free of charge.
d. If you see a product that you don’t want to buy, a reminder will be sent to you every day.
e. The scrolling display shows "XXX has another successful group order", creating a lively atmosphere.
f. Limited-time flash sales, sign-in to receive prizes, and various festivals will make you want to stop.
g. If you set multiple SKUs for one SPU, the lowest price will be displayed on the list page. When you select the SKU of the central unit, the price is not cheap.
During that period of time, Pinduoduo gave people the impression that the purpose of going to Pinduoduo was not to spend money, but to take advantage!
03 The power of capital, the power of farmers
On July 26, 2018, Pinduoduo was listed in the United States, setting a record for the fastest listing of a Chinese company at the time.
What is faster and more powerful than the time to market is the GMV data: from 0 to 100 billion, Taobao took 5 years, JD.com took 10 years, and Pinduoduo only took two years. On January 25, 2019, Pinduoduo, which was listed less than half a year ago, once surpassed e-commerce giant JD.com in market value. It was evaluated as "Pinduoduo takes three years to reach JD.com in 20 years."
Learning momentum is one of the important reasons why Pinduoduo can grow so strongly!
First, the momentum of capital.
Tencent is not only a technology company, but also a business giant. However, it has never been able to get a share of the cake in e-commerce.
In the field of e-commerce, Tencent can be said to have experienced repeated defeats and defeats.
Since officially getting involved in e-commerce in 2006, Tencent e-commerce consists of three parts: Paipai.com in the C2C field, QQ Mall in the B2C field, and QQ Online Shopping, which is formed in cooperation with large domestic B2C companies. ?, despite investing huge manpower, material and financial resources, Tencent e-commerce ultimately failed.
Later, Tencent changed its strategy and decided to take the e-commerce cake by taking a stake. First, it invested in JD.com, and then supported Pinduoduo.
The rise of new entrant Pinduoduo has made Tencent’s e-commerce dream even stronger. In 2016, Tencent directly led Pinduoduo’s Series B financing, providing a large amount of fund assets, coupled with WeChat’s huge user base, and did not hesitate to disrupt the WeChat ecosystem and help Pinduoduo take off.
Pinduoduo borrowed Tencent’s momentum, and Tencent realized its dream. Tencent relies on JD.com and Pinduoduo to compete with Alibaba.
The second is the momentum of policy.
Pinduoduo started out with fruit grouping. In recent years, national policies have been helping farmers to get their agricultural products out of rural areas and into cities. The emergence of Pinduoduo has helped thousands of farmers sell their agricultural products across the country.
Pinduoduo proposed a plan to cover 90% of national-level poverty-stricken counties and support 10,000 new farmers.
In 2018, we directly cooperated with 300 agricultural producing areas across the country, eliminated large and small wholesalers, and eliminated retailers, and finally delivered agricultural products directly to users’ homes. In one year alone, orders for agricultural products exceeded 900 million, and Shanghai alone consumed about 110,000 tons. The sales model can gather massive demand in a short period of time and quickly digest large quantities of seasonal agricultural products.
Yacon, mango, and passion fruit from remote mountainous areas have become the new favorites of first-tier cities such as Beijing, Shanghai, Guangzhou, and Shenzhen.
As of Q1 2020, Taobao has 726 million active users, Pinduoduo 628 million, and JD.com 387 million. In total, Pinduoduo’s active users are only 100 million behind Taobao, but its growth rate is still three times that of Taobao (Taobao’s active user growth rate is 2.1%, Pinduoduo 7.3%, JD.com 7.0%), Pinduoduo’s In the future of the user side, there is still a lot of imagination.
Pinduoduo’s success cannot be copied, and Huang Zheng’s success cannot be copied either.
But the Internet is full of miracles, and you can never guess who the next dark horse will be.