Unbelievable,the real opponent of Pinduoduo is the anchor of E-commerce Live Streaming

Posted by zaiwu 03/06/2020 0 Comment(s) China Social Media Marketing, Doing Business in China,

Huang Zheng must not have thought that the biggest opponent of Pinduoduo would be the anchor of Douyin and Kuaishou.

 

Since Pinduoduo was born in 2015, the outside world is looking for its rivals. However, in Huang Zheng's view, pinduoduo had no competition.

 

Pinduoduo was an e-commerce platform. At that time, the e-commerce giants already had Ali and JD.com. Huang Zheng believes that these two are equivalent to Baidu in e-commerce,which focuses on search and the underlying logic is people looking for goods.While Pinduoduo is a match, recommendation is the most important, the underlying logic is goods to find people. Unlike the business models of Ali and JD.com, everyone belongs to a different species. That is to say,Pinduoduo and alibaba, jingdong is in a dislocation competition in the field of e-commerce.

 

Are there any opponents in the same mode as Pinduoduo? When he was guest of "Fortune about You", Huang Zheng thought that there was no opponent of the same model. Because Pinduoduo ran too fast, it had 300 million users in three years and then went public. "Pin Duoduo has been exploding, and has not stayed at a certain stage for too long, so there is no opportunity for others to imitate and catch up." Even so, Huang Zheng still believes that every day that Pinduoduo grows, he is fighting hard because E-commerce is a red sea. Of course, Huang Zheng’s opponents in the fierce battle are more misunderstandings and criticisms of the outside world. For example, some people say that Pinduoduo is low, some people say Pinduoduo sells counterfeit and shoddy products, and others say Pinduoduo uses human nature, amplifies the psychology of taking advantage, harvests acquaintance networks, and so on. Huang Zheng was distressed and tried to explain.

 

 

We are unbelievable that Pinduoduo is danger now,and the real opponent of Pinduoduo is ...

 

 

01

Why did Pinduoduo succeed?

 

 

"Pin Duoduo can get up, 70% depends on luck, and 30% depends on hard work."

 

Domatters once shared an article, you can click here Buy Together PDD(Pin duo duo), more is what you don't know to view.There are 3 reasons for analysis.

 

  • The first reason is that PDD is so good is mainly because its team is great.
  • The second reason for pinduoduo's success is that it is so well oriented.
  • The third reason for pinduoduo's success is that it has developed three keywords,which are WeChat,taobao,insight into human nature.
  •  

I will not talk about this here. Here Domatters would like to mention a bit about its model.The appearance of Pinduoduo gives everyone an affordable place to consume. "More affordable, more fun." It was Pinduoduo's original slogan. In Pinduoduo's prospectus, Huang Zheng defined the mode of Pinduoduo as Costco+Disney.

 

 

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Costco is the largest chain member storage warehouse in the United States and the third largest retailer in the United States and the ninth largest retailer in the world. Its core competitiveness is high cost performance, and the products sold here are basically close to the cost price, but the quality does not decline. Costco is the source of Huang Zheng's "consumption inclusive" idea, and it is also a specific form of multiple benefits. To achieve Costco, this requires Pinduoduo to have strong supply chain management capabilities. In other words, Pinduoduo should have a strong bargaining power. This is also the basic reason why in the early days, Pinduoduo was almost all white-label, counterfeit or counterfeit products, and there were few big brands.

 

About Disney, we understand very well. This is a playground and a place where consumers spend money for fun. Many people observe Pin Duoduo, they will say that the gamification of e-commerce is an important factor for its success. Gamification refers to a non-gaming field that uses game design elements and game mechanics to enable users to obtain a game-like experience and perform behaviors similar to those in games. The concept of gamification only began to spread widely around 2010. In a 2013 survey, more than 70% of Forbes Global 2000 companies said they intend to use gamification for marketing and customer acquisition. Gamification can become a trend, largely because the rapid development of the Internet has precipitated a large amount of real, panoramic user data. Based on these data, it is possible to design various mechanisms required for gamification. Pinduoduo is the game company that was hatched from Huang Zheng.

 

Huang Zheng once said that games are a consumption upgrade for boys, while shopping is the biggest game for girls. In this sense, Pinduoduo is set up according to a game product. Therefore, there are many scenes and elements of the game, which can meet the needs of users to get a sense of pleasure in the shopping process. This is also a concrete manifestation of more fun.

 

Looking back at the development of Pinduoduo, Huang Zheng would like to thank the rise of social networks, mobile payments, and a nationwide logistics system.Pinduoduo organically combines e-commerce and mobile socialization, but Huang Zheng also said that there is no category of social e-commerce, and no one will buy something for socializing or socializing for shopping. "By creating a sharing scene on WeChat is an important reason for Pinduoduo's early rise. We did not have data in the early days, so we use people to understand people on WeChat. What are the characteristics of you and your friends. But WeChat is not the only and ultimate scene. After we fully understand the users, I can create new scenes through the platform without WeChat, use machines instead of "friends" to make judgments, and push the most suitable products to users. Now what you see is just the initial stage of Pinduoduo ."

 

Combining human emotions with the cost-effectiveness of shopping, this kind of scene did not exist before the emergence of Pinduoduo. After all, the success of Pinduoduo is the victory of the model.

 

 

02

The real opponents of Pinduoduo

 

 

Today, Pinduoduo's successful model is facing strong challenges. Interestingly, this challenge does not come from the e-commerce platform, but from the short video platform, from the hot live streaming .

 

 

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According to Li Hao, CEO of Mars Culture, live streaming is a typical mode of goods finding people, and the consumer behavior triggered by content or KOL is more enjoyable. In the goods-to-people search model, the source of recommended information is very critical. The goods-to-people search model has long existed. The flyers distributed at the door and the advertisements placed on various media are all goods-to-people.

 

Meituan CEO Wang Xing once said that SNS is the best source of recommendation because it has the highest credibility and can form a good reputation. Meituan does e-commerce for local services. The business model is that after the Meituan communicates with the merchants, it provides discounted products, which are then purchased by users and consumed at offline stores. The early promotion of Meituan used this method extensively. Meituan collects money from users and then purchases from merchants. Therefore, for Meituan, users and traffic are the most important, and merchants, just suppliers, can be replaced at any time.

 

 

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In the business of Meituan, the users who buy together are strangers. In a business of Pin Duoduo, the users who buy together are acquaintances. Pinduoduo used the acquaintance network to further strengthen the credibility of the recommended sources. A product sells for 29 yuan on Taobao, and 19 yuan on Pinduoduo. If you can find five friends to buy with you, you may be able to buy it for 9.9-and also free shipping. Before the popularity of smartphones and mobile payments, this approach is difficult to scale. Pinduoduo caught up with the good times, Huang Zheng deeply tapped this demand, and the market also used explosive returns.

 

But the broadcasters in the live streaming who are web celebrities are more powerful than the recommendation of an acquaintance. If you have a product recommended by an acquaintance, you will participate in the purchase. If there is a problem with the product, you will complain at most with the acquaintance. But the product recommended by the anchor is different.

 

Compared with the general acquaintance relationship, the relationship between fans and anchors is also closer. Many anchors regard their fans as family members. For example, Simba cherishes their fans very much. On a live broadcast, he described an electric toothbrush that needed charging as a battery-powered electric toothbrush. When he found that he was wrong, Simba went viral on the spot, cursing the staff, thinking that their work was a mistake, resulting in He lied to fans himself.

 

 

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Lin Yilun treats fans as fans, saying, "Fans love me, and I also love fans." He has built dozens of fan groups. He will enter the group from time to time to interact with fans, and will also send red envelopes during the holidays. "Recommend good things to everyone, I am very happy if everyone is satisfied. If it is just selling goods, maybe I have already given up." In the Pinduoduo model, the strong relationship attribute of acquaintances is criticized that many users participate in The purchase was not voluntary, and they felt that they had been kidnapped. This is also the main reason why Pinduoduo is accused of being low.

 

But in the live broadcast, all the anchors are followed by fans themselves. Fan buying behavior is actively participated by fans, and the sense of pleasure will be much stronger. In other words, one of the core concepts of Pinduoduo, "more fun", is actually not as good as live streaming. And another core concept of Pinduoduo, "multiple concessions," also happens to be the starting point for live streaming. The lowest price in the whole network is the core attribute of live broadcast. Unlike the live broadcast of the show, e-commerce live broadcasts are all about products, and many head e-commerce live broadcasters also solidify the powder by winning the "lowest price of the entire network".

 

 

03

Is Live streaming + e-commerce is just a challenge for Pinduoduo?

 

 

Some people may say that due to the large number of users and transaction volume of Pinduoduo, live broadcast e-commerce is only a challenge to Pinduoduo at most, and it is not dangerous. Is this statement correct? Domatters will take a look with you.

 

 

According to the report of "Tiger Sniff", as of the end of March 2020, the monthly number of mobile users reached 846 million. The number of users (annual active users) with shopping behavior in the past 12 months reached 726 million, a net increase of 72 million from the same period in 2019, an increase of 11%. The latest data on the annual active users of the three major e-commerce platforms are that Ali is 730 million, Pinduoduo is 630 million, JD.com is 390 million.The total is 1.75 billion, which is about twice the number of existing e-commerce users in China.The total is 1.75 billion, which is about twice the number of existing e-commerce users in China.

 

It is also worth noting that at the beginning of this year, Douyin announced that its daily activity exceeded 400 million, and Kuaishou announced that its daily activity exceeded 300 million. Subsequently, due to the impact of the epidemic, this data has further improved. Approaching the number of mobile users.

 

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It is a well-known fact that there is a high degree of user overlap between major platforms. In other words, at the beginning of the establishment of Pinduoduo, there was still room for competition. But this is the fierce battle in the stock market today. Last year, Taobao’s live broadcast of GMV exceeded 200 billion. According to statistics, the Douyin is almost the same. Li Hao predicts, "In 2020, the transaction value of live e-commerce will be close to 1 trillion."

 

A few days ago, according to 36 Krypton report, 36 Krypton learned from many insiders that the GMV target of the fast-hand live broadcast e-commerce business in 2020 is 250 billion. The GMV target of Douyin Live E-commerce is as high as 200 billion. As we all know, Taobao live broadcast relies on Tmall and is mainly based on big brands. It is actually a misplaced competition with Douyin and Kuaishou. Only PinDuoduo's market share can be grabbed by Douyin and Kuaishou. Compared with Ali Jingdong, Pinduoduo's business is much thinner. It has no logistics, no finance, and no payment system of its own. Although, according to Huang Zheng, this is because Pinduoduo must focus on tapping user needs and transforming supply chain production. However, it is an indisputable fact that Pinduoduo's ability to resist strikes is relatively poor.

 

On May 27, Kuaishou signed a strategic cooperation agreement with Jingdong. According to the agreement, the two parties will conduct in-depth cooperation in the supply chain. JD Retail will provide superior category products to Kuaishou stores. Both parties will build a pool of high-quality commodities, which will be sold by Kuaishou anchors. Kuaishou users will be able to directly purchase JD.com’s self-operated products in Kuaishou shops, and enjoy Jingdong’s high-quality delivery and after-sales services. If there is a shadow of Tencent behind this cooperation, perhaps Huang Zheng will complain again, "I am dead, Tencent will not die, Tencent has tens of millions of sons." After obtaining the supply chain of JD.com, the quick hands are live broadcasting Explosions on e-commerce are to be expected.

 

Why doesn't Kuaishou cooperate with Pinduoduo? Perhaps, in Su Hua's heart, Kuaishou short video can create a Pinduoduo. Jiang Fan is a person with a very keen sense of smell in the market. He has said before that if short video and live broadcast can only be done by Taobao, then he will give up short video. Because the live broadcast is completed, we can effectively curb pinduoduo. Unfortunately, Taobao is always short of traffic and unable to do so.

 

Now, Douyin is a better weapon, how will Ali use it? Once Douyin was supported by Ali's supply chain, it was time for Pinduoduo to be the most dangerous.

 

 

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