Pinduoduo rocks the market
Pinduoduo users surpassed JD.com and challenged Taobao in just three years since it was established.
The number of active buyers skyrocketed from 67.7 million in the first quarter of 2017 to 418.5 million in the fourth quarter of 2018. The annual per capita consumption increased from 67.7 CNY to 1,127 CNY. In the fourth quarter of 2018, the revenue was 5.653 billion CNY, a year-on-year increase of 379%
So, how did they manage to squeeze the momentum on such a harsh and competitive arena?
1) Mostly marketing to rural areas, and third- and fourth-tier cities promoting cost-effective deals;
2) Using the power of peer-to-peer recommendation and group buying on WeChat.
According to the number of active buyers in the year, the number of active buyers in the annual market is 419 million, which has exceeded Jingdong. However, the spending power of many users is still low, and the annual per capita consumption is only 1,127 yuan, which is 1/5 of Jingdong and 1/7 of Alibaba.WeChat fission power: WeChat as the social platform is the fastest mobile Internet application. By using the fission energy of WeChat network, we can use the low threshold to buy more (you can enjoy more discounts when you join 1-2 people). The way to get discounts makes good use of the power of user word-of-mouth recommendation, and at the same time, it is a lot of time to buy a link friend circle, and the WeChat group is flying all over the sky. The WeChat fission power of the purchase combined with the shocking “low price” mentioned above, the user naturally flies up, and the extremely low user growth cost makes it possible to implement the low price strategy more arbitrarily and distribute it to provide low supply.
The sinking has brought new growth opportunities. In all areas of the Internet, new unicorns like Pinduoduo are beginning to emerge, challenging the traditional Internet giants with the momentum of rural encirclement
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