According to the financial reports of the two companies, the average monthly active users in JD.COM in the second quarter was about 4. 1 100 million, while the average monthly active users in Pinduoduo far exceeded that in JD.COM, reaching 560 million. It is hard to believe that this is something that a five-year-old enterprise can accomplish, surpassing JD.COM. Com1.500 million yuan.
In 2007, Huang Zheng, who graduated from TOP 10 Zhejiang University in China and studied for a master's degree in the United States, resigned from Google and started to work as a mobile phone e-commerce and game company. Huang Zheng, who has been in the field of e-commerce in China for eight years, finally launched the predecessor of Pinduoduo in April 20 15. Five months later, Pinduoduo, which will affect nearly 600 million consumers in China in the future, was officially launched. This is the power of the Internet in China. It took only 22 months for a company to complete the transformation from 0 to 1 100 million people.
What followed was the continuous inflow of capital into Pinduoduo. The financing is getting bigger and bigger, the valuation is getting higher and higher, and the cheap things on the platform are getting more and more year by year.
On the other hand, founded by Liu, although its annual financial report shows that its performance is increasing, its growth rate is far weaker than that of Pinduoduo. Why can Pinduoduo complete and surpass JD.COM with a history of 22 years in five years?
Many people may blurt out that Pinduoduo is cheap. This is indeed a fact. Pinduoduo and JD.COM are completely different business models. JD.COM is a self-operated commodity+self-operated logistics, and the authenticity, service, quality and transportation timeliness are guaranteed. JD。 COM's business model also leads to the fact that most of its consumers are people in first, second and third tier cities, with high spending power. JD.COM can give them high-end consumption quality and rapid logistics timeliness, and consumers are naturally willing to pay for it.
Pinduo takes a low-price model similar to social fission. One person buys a high price, but if you buy it with another person, the price of this product will be far lower than the market price, which is also in line with the slogan of more products: more products, more efforts, more provinces.
Friends who have used Pinduoduo know that there are many low-priced goods on this platform, and 5 wallets, 9.9 bags and other daily necessities can be seen everywhere. And Huang Zheng just grasped the consumption psychology of the 456th Line and low-income people in rural areas, and pried open the e-commerce door occupied by Alibaba and JD.COM for many years at a low price. To put it bluntly, Huang Zheng only made money from the "poor", but there is nothing wrong with it. The annual growth of sales and users in Pinduoduo indicates that the products on this platform are really needed.
Many people may think that many products are cheap because they are white brands and small commodities without brands. They are all produced by some small factories, and the quality is definitely worse than that of big brands. But for low-income people, the brand is not important, what matters is that it is cheap enough.
In fact, this is only one reason why Pinduoduo is cheap, and another reason is platform subsidies. As can be seen from the second quarter financial report released this time, in just three months, Pinduoduo has provided 9 1 100 million yuan in subsidies to reduce commodity prices, an increase of 49% over the previous quarter. In fact, this is the reason why Pinduoduo is cheap. It subsidizes goods with profits and investors' money, allowing consumers to buy big-name products, such as iPhone, which are far below the market price on the platform.
Of course, the bounden duty of an enterprise is to make a profit, and the subsidy of this platform cannot last forever. When enough users are attracted, their consumption habits are formed, and businesses are attracted, it is estimated that Pinduoduo will probably stop this subsidy behavior.