It’s not Pinduoduo that defeats Alibaba!

Pinduoduo's market value surpassed Alibaba? What defeated Alibaba? It was not Pinduoduo, but the vast consumer population and the new trend of gradually pursuing consumption downgrade. Pinduoduo's strategy in the sinking market is simple and crude enough to attract users. Let's take a look!

This is the first time that Pinduoduo’s market value has surpassed Alibaba, and there will probably be many opportunities to surpass Alibaba in the future.

It is even possible that for a long period of time, perhaps half a year or a year, its market value will be higher than the combined market value of Alibaba, JD.com, and Vipshop.

When I woke up this morning, my friends circle was almost flooded with posts from internet people.

Some people applauded Pinduoduo, while others lamented over Alibaba.

I have also read many teachers' high-level analyses, ranging from national policies to Alibaba's internal affairs, users, competition from other platforms, and so on.

But personally, I think many masters’ analysis is still not down-to-earth enough, just like Taobao.

We took something that was originally very ordinary and simple, and turned it around and around and analyzed it into various meanings, but in the end, we did not get to the essence of it.

I would like to express my opinion here, hoping to add another perspective.

1. 8 out of 10 people are using Pinduoduo

At the end of 2017, my former boss and I started our own business.

At that time, social e-commerce and mini-programs were on the rise, and I paid attention to Pinduoduo very early on.

We also plan to enter the sinking market, so we will act separately to conduct user research.

I traveled to Huangshan, Shangrao, Quzhou, Wuhu, Nanjing, Hangzhou Xiaoshan, Anji and other places, talked with customers one-on-one offline, and then personally looked at the apps on their phones.

Some made appointments in shopping malls, some in Starbucks, some in urban village markets, and some even went to the gates of some factories to wait for workers to get off work and conduct research.

The survey results at that time surprised me. It can be said that almost 80% of people had downloaded Pinduoduo on their mobile phones. Some people didn’t even have Taobao or had uninstalled Taobao.

Because at that time, it was only more than two years since Pinduoduo went online.

Of course, there are also a few people who have been using JD.com and Vipshop.

I asked them why they all used Pinduoduo, and the answers were almost the same: it’s cheap.

When asked why they don’t use Pinduoduo, there are some reasons for dissatisfaction, such as poor quality, damaged express delivery, etc.

Some people also told me that they can actually receive cash red envelopes, and they have received them several times.

2. I buy more on Pinduoduo than on Taobao

Although I did some offline research, I didn’t use Pinduoduo right away, and many people asked me for help bargaining and support at that time.

I looked through my Pinduoduo shopping records and the first order was for phone recharge on Pinduoduo in December 2018.

The next few orders were to buy Pinduoduo’s money-saving monthly cards, which only cost a few cents, and you can get a 5 yuan coupon every week with no threshold. There is really no tricks involved.

Later on, I would not shop on Taobao if I could buy it on Pinduoduo.

Especially when buying toys for children, the lifespan of a toy will not exceed one week, so there are at least 100 toys on Pinduoduo, ranging from a few yuan to dozens of yuan.

3. What users need is cheap

Many so-called masters have made various analyses, but none of them have experienced Pinduoduo in depth.

Or the impression of Pinduoduo is still stuck on the PR promotion of business wars, before 2018, or personal consumption standards.

1. Really cheap

My suggestion to you is that no matter whether you are looking for a brand’s flagship store or an ordinary white-label product, you can buy them yourself and compare them to find out.

The same product, the same company’s store, the same shipping address and merchant name, Pinduoduo is cheaper.

Many people still think that Pinduoduo's development started with social group buying in 2017. In fact, Pinduoduo has been able to place orders directly for a long time.

For example, with Pinduoduo’s 10 billion yuan in subsidies, Apple phones are indeed cheap.

2. Good quality

Countless people have complained about Pinduoduo’s counterfeit goods and quality, but it seems that this is only Pinduoduo’s problem?

Let me ask you, are there no fakes on Taobao now? Are all the products you buy reliable quality products?

Any platform has problems with counterfeit goods and poor quality, including Kuaishou, Douyin, JD.com, etc.

I personally spend a lot on Pinduoduo, especially groceries, fruits, etc. To be honest, it’s not bad.

4. Don’t use your standards to represent everyone

Because I have joined many entrepreneurs, executives and various Internet circles, there are many such people in my circle of friends.

Their annual income is at least around 80,000 to 150,000 yuan, and many earn more than 200,000 or 300,000 yuan.

Many high-income people always compare products that cost 100 or 200 yuan on Vipshop, Tmall, and JD.com with those that cost 20 or 30 yuan on Pinduoduo.

Then they came to the conclusion that the product was not good, and therefore thought that no one would go to Pinduoduo to consume, and that all the products on Pinduoduo were fake.

a. Many people inherently believe that Pinduoduo will never develop, will never solve the quality problem of counterfeit goods, and believe that other people’s employees are blind, so their impression of Pinduoduo still remains in the disordered stage before 2018.

b. Many people underestimate the tolerance of ordinary users and overestimate their income and consumption capacity.

In China, a monthly income of 10,000 yuan exceeds that of more than 95% of users.

10,000 yuan can be used to pay off the mortgage, rent, debts, etc. The amount that can actually be used for consumption has to be counted on one’s fingers.

The most important point is that in your eyes, you may think that 10 kilograms of apples at 19.9 yuan are not worth buying and 10 rolls of paper towels at 6.9 yuan are not worth using, but in fact, this is the normal life of ordinary people.

So the so-called Internet masters and executives make all kinds of analyses because they simply don’t know why users want to consume, and why they continue to go to Pinduoduo after buying many things and being dissatisfied.

5. Lower the standard and try it

About why Pinduoduo will definitely surpass Alibaba, including for a long time in the future.

I think if you don’t understand or want to buy Pinduoduo’s stocks, I suggest you expand your trial-and-error mentality, increase your tolerance a little, lower your material consumption standards a little, and try to buy it for a month.

You will have a deeper understanding and understand it better than I can tell you.

Even if there are still many people who have a bad shopping experience, or still don’t know how to make a choice, it doesn’t matter, because you and I do not represent the consumer masses of hundreds of millions of users.

6. Opportunities will always appear

I would like to use the fact that Pinduoduo surpassed Alibaba, the rise of Douyin e-commerce, and the disruption of traditional car companies by new energy vehicles to tell you that there will always be opportunities to make money.

When many people start a business, they always feel that there are oligarchs in front of them and they are very scared.

But as long as your product direction is right, your business strategy is right, and your products, services, and content are good, you will definitely have a chance.

Your products are better than those of your competitors, your services are better, your iterations are faster, your responses are faster, and most importantly, you save money. Why wouldn’t users use it?

If so, it means your product, service, etc. is not good enough. You just think it is good.

Including the small tools we have been making in the past one or two years, there are actually many giants ahead of us, but there are still some users who choose to use us and affirm us.

So everyone, don't be afraid and don't be prejudiced.

Make an effort and users will make a choice.

Many people asked me why Pinduoduo surpassed Alibaba, or what exactly defeated Alibaba?

It’s not about one or two product matrices, or social e-commerce, and Pinduoduo’s live streaming sales are far behind Alibaba. These are not the essence.

It is arrogance, prejudice, generalization and stubbornness.

Author: Village Chief

WeChat public account: Shili Village (ID: shilipxl)