From Pinduoduo's page layout, we can see Pinduoduo's operation strategy

Before doing Pinduoduo, you must first look at the platform's policy and what they advocate. Only by following the platform's own operating strategy can you go with the flow and move forward. The author of this article speculates Pinduoduo's overall operating strategy from Pinduoduo's page layout, and then derives the merchant's operating strategy, hoping to bring you some inspiration.

I'm currently working on Pinduoduo. Like all e-commerce operations, I plunged headfirst into the research of through trains when working on Pinduoduo. I studied every day how to drive, how to adjust bids, and how to attract customers naturally.

After running it for a long time, I found a strange phenomenon. The same method, such as opening the search to increase the weight and then opening the whole site, can open some products, but not others. Some products even don't need to attract people and weight at all, and can run as long as the link is posted and the whole site is opened. Is it the wrong method or luck? It's hard to say.

There must be complex reasons behind the appearance . If we simply look at the matter at hand, we cannot analyze the reason. If we want to understand the deep principle behind a thing, we must look at the problem from a higher latitude to see it more clearly. When you are on the top of a mountain, you can see all the other mountains. This is the truth.

Therefore, before doing Pinduoduo, the first thing we should do is not to study how to open a through train, but to see what the platform's policy is, what they advocate, and follow the platform's own operating strategy to formulate our own product operating strategy, so that we can go with the flow and move forward . Going against the platform's rules is like sailing against the current, which is difficult.

Here, from my perspective, I speculate on Pinduoduo's overall operating strategy based on the layout of the Pinduoduo APP page, and thus deduce the operating strategy of our merchants. It may not be completely correct, and is for reference only.

Open Pinduoduo and you can see the core areas: search box, Pinxiaoquan, icon area, Duoduo shopping, 10 billion subsidies, and 1000 recommendations for 1000 people; and the menu bar: home page, Duoduo video, categories, chat, and personal center. Let me analyze them one by one.

01 The search box is a core resource

The layout is not much different from other e-commerce platforms. The core area is still the search + icon area. Regardless of whether it is e-commerce or application market, the search conversion volume accounts for about 60~70% of the total platform volume. The reason why we need to open search OC is because the search volume is large. If you can open search OC well, you will grab two-thirds of the platform traffic .

Because of the large amount of traffic, many people doing it, and limited space, the competition will be fierce. The reason why the system recommends bidding is that if you run a search and get 8 yuan, and others offer 12 yuan, whose link will the system put first? If it is a new product and you want to get exposure quickly, bidding high is the only option.

You don't have to pay a high price. You can also do what I did, set a low price, and run slowly. There will always be a lot of users who will see our products. I won't say much about search. Anyway, it's a job that costs money. Whoever has more money will rank higher.

02 Icon area introduction

The icon area refers to the 14 icon areas below the search box, from which you can see the tone of each platform. Taobao links to different service modules, such as travel, supermarkets, buying medicine, buying tickets, etc. JD also puts service modules here, such as supermarkets, electrical appliances, JD home delivery, buying medicine, etc. Each icon represents a service module .

Pinduoduo is all about activities. Everyone who does operations should know that the essence of activities is price reduction. Whether it is a big turntable, shaking red envelopes, group buying, etc., they are all disguised price reductions. From this, we can see that the overall tone of Pinduoduo is still based on low prices . Low prices have nothing to do with quality. Low prices are not necessarily bad quality, but they are not necessarily good either.

When I first started Pinduoduo, I still had a bit of idealism and felt that I had to provide high-quality products to users. Later, what I heard most was that saying that your product quality is good on Pinduoduo is a joke.

I have seen people who make links in batches, post one after another, and finally make a lot of money; there are also idealists who want good quality but still cannot escape the fate of only refunding. I will not comment on which method you choose, the best one is the one that suits you.

The first icon in the area is a limited-time flash sale. Clicking it will show you groups of 10,000 people, groups of multiple people, and brand flash sales. Are the prices here inflated? There are relatively few. For groups of 10,000 people, the prices are all as low as the floor price.

You have to know that the platform has the product cost of each merchant (which can be deduced from the bid profits of several merchants). The platform knows exactly how much you can earn from your selling price. High-profit goods sell slowly, and low prices can generate huge sales. Those who can run groups of 10,000 or 3 people basically have absolute price advantages.

We have to ask ourselves, are we the manufacturer? If so, we can consider it. If not, we don’t need to look at it .

The reason why we have to drive is because if we don’t drive, we will have no resources. Once the product has a price advantage, everyone’s operating strategy will change. You are doing traffic business instead of service business.

Traffic business means that the platform will give you 1 million clicks, and you must be able to ensure the highest conversion rate and GMV is much larger than that of competitors. How to ensure conversion rate and GMV? Low price. Driving skills, drawing skills, evaluation skills, etc. are pale in front of low prices .

When we choose Pinduoduo, do we have to follow the platform's low-price strategy? If we follow this strategy, what capabilities do we need to improve? Supply chain capabilities, the ability to master platform resources, and the ability to maintain the relationship with the platform's second-hand customers. At this time, your operational capabilities are secondary, and the ability to integrate resources is the core.

Other modules in the icon area, such as clearance sale, 9.9 yuan special sale, and multi-person group sale, are just limited-time flash sales in a different skin. An Apple phone is sold for 9.9 yuan. I can choose flash sale, special sale, or clearance sale. It doesn't matter what module it is. The most important thing is whether the price can be reduced.

Do we know our own operation strategy through the above? If you want to run a low-price business, just follow the platform's activities.

The icon area also includes the big turntable, Duoduo Orchard, Duoduo Love Elimination, etc. These are fun games to kill time. Are there any resource slots in them? Yes, they are scene resources.

The traffic of the scene is very large. Based on this, it can be inferred that most of the users of Duoduo have more free time. They will treat Duoduo as a supermarket. Then the scene is a supplement to our sales growth. If search is turned on, I suggest opening a scene as well. As long as the average order value is high, you can pay 4 yuan and hang it there, and you can also get an order. The investment and production capacity are very high.

03 The 10 billion yuan subsidy is a concentrated reflection of the low-price strategy

Why was the 10 billion subsidy born in Duoduo instead of Taobao and JD.com? It was due to strategy. Duoduo’s main focus is low prices. If you want to promote low prices, you should at least have a benchmark column that can be shown off. So the 10 billion subsidy came into being. I heard that the name is 10 billion subsidies, but in fact, the merchants just paid for the price reduction themselves .

Is there any difference between 10Billion and other promotional resources? In essence, there is no difference, they are all reduced to the lowest price. The requirement of 10Billion is very simple, the lowest price in the whole network. Let me put it this way, if your product has the lowest price in the whole network, even if it is not 10Billion, your sales volume will definitely not be bad.

Hundreds of billions simply further amplifies the sales volume. With special resource support and platform reputation support, it is also the lowest price on the entire network. If conditions permit, then let’s reach hundreds of billions.

04 Last

Due to limited space, I will share it here first. There are many more videos, similar product recommendations, rankings, etc. Each resource has its purpose. If we want to do a lot, in addition to playing well with our own products, we must also know ourselves and the enemy of the platform.

In this way, when you get a product and see the cost, you will know how to maximize the profit of this product.

Author: Tiger Talks Operations

Source: WeChat official account: "Tiger Talks about Operations (ID: laohujiangyy)"