Produced | Dali Finance
From online to listing, from zero transaction to daily trading orders exceeding 100 million, and now the market value exceeds 600 billion, is Pinduoduo's "New Brand Plan 2.0" really powerful?
Introduction
To be able to continue to develop against the trend in the environment of the epidemic swept through and the global economic recession, what magic weapon and confidence do you rely on? Not only did the stock price double within half a year, but also the small target of over 100 million orders per day?
In 2015, Pinduoduo was officially launched; 10 months later, Pinduoduo's monthly turnover exceeded 10 million, and its paying users exceeded 20 million. When the number of users exceeded 100 million, Pinduoduo only took 1 year and 3 months. As of now in October 2020, Pinduo has more than 628 million active users for many years, with a market value of more than 604.76 billion yuan, making it the fourth Internet company in my country with a market value of over US$100 billion.
Looking back, Pinduoduo's "New Brand Plan", which has been underway for two years, has come to the fore.
01
Continuous brand upgrade,
Pinduoduo bucks the trend and enjoys the bonus
After officially surpassing JD.com and confronting the pressure brought by the giant Ali, Pinduoduo completed its listing at the end of 2018. As soon as it went public, Pinduoduo quickly launched a "new brand plan" to support 1,000 factory brands and help them more effectively reach Pinduoduo's 385.5 million consumers (the number of users at the time).
In the following short period of more than 7 months, Pinduoduo received applications from more than 6000 manufacturing companies, and nearly 500 companies and brands participated in the pilot project, with 63 official members, which led to the launch of cost-effective customization There are more than 1,200 products and more than 57 million orders. During the "June 18" online shopping festival alone, the number of orders for customized products on the platform exceeded 9 million.
Xu Ye has tasted the sweetness. At the end of 2019, Pinduoduo is still mentioning the "New Brand Plan". On December 20, 2019, it held a "New Brand Plan" conference in Gaomi, Shandong, announcing the expansion of the super-entry "10 billion subsidies" to people's livelihood consumption categories and industrial belts, and the new brand plan from "single factory support" The rapid advancement to "industrial belt activation".
"In September, GMV exceeded 19 million; on November 18, National Cooling Day, GMV exceeded 12 million. On that day, a four-piece SKU set on a bed sold 85,000 pieces, setting an industry record. Over 100 million, it is the first month in Pinduoduo's history to maintain 200% growth from the previous month."
Most people who are familiar with Pinduoduo know that Pinduoduo, which seems to be a low-cost route, never makes a loss-making business. To be precise, since its debut, Pinduoduo has been pursuing the "extreme cost-effectiveness" . Since the era of "good goods", it has put forward the upward concept of "platform + new farmers + farmers", which has combined 6 to 6 in the circulation of traditional agricultural products. 8 links are reduced to 2 to 3 links, thereby greatly reducing costs. In 2019, Pinduoduo's agricultural product sales reached 136.4 billion yuan, making it the largest agricultural product upstream platform in China.
It was the success of "Policing Agricultural Products" that made Pinduoduo realize the potential of sinking the market and also tasted the sweetness of a minimalist supply chain. Therefore, the follow-up "new brand plan" was launched, with the purpose of extending the upward supply chain reform of agricultural products to industrial production.
The new brand plan has also brought excellent results to Pinduoduo as scheduled: Since its implementation, more than 1,500 companies have participated in customized R&D and launched more than 4,000 customized products. The total number of orders reached 460 million, and the average daily customized product order volume More than 2 million orders.
02
Empower domestic brands,
Pinduoduo upgrades "New Brand Plan 2.0"
"How much traffic is left for me?" Now, in 2020 when the nation is fighting the epidemic, when others are still worrying about traffic, Pinduoduo has already won the opportunity to seize traffic after five years of leaping development. Taste the dividends brought by huge traffic. No, Pinduoduo's new brand plan 2.0 is about to open the door to a new world.
With support plans and traffic support, how can these new brands be born? In this process, Pinduoduo aims at high-quality production capacity, directly based on user data, to help companies make customized products. These products are born with explosive genes. At the same time, it helps companies improve their operational capabilities, gives support to start-up traffic, and promotes a positive cycle for companies.
Pinduoduo's unique natural genes and unique "goods looking for people" model aim at the potential needs of the vast majority of consumers and help high-quality products sell well. Pinduoduo announced a comprehensive upgrade of the "New Brand Plan" launched at the end of 2018. The upgraded "New Brand Plan" will increase efforts to support new brands in four aspects:
1. Increase the support target and drive 1 trillion sales; 2. Expand the number of partners from 1,000 to 5,000; 3. Larger resource input: Ten billion subsidies, Miaopin business group and other strong resources to join Pinduoduo "Support resource package" to provide enterprises with customized brand promotion programs; 4. Cooperation model innovation: from helping OEM companies to incubate their own brands, upgrading to OEM companies' own brand cultivation, well-known brand sub-brand building, cutting-edge brand support, domestic products Four models such as rebuilding old brands.
The intensity is not small, and the impact on the industry is not deep and wide. In this regard, a lot of fight Chiu, vice president has said, to fight a lot of brand new 2.0 plan to continue to break the imbalance between supply and demand, so that producers and consumers return value, so that the value of reflux Made in China.
The core of Pinduoduo's new brand plan is to promote the supply-side structural reform of enterprises, especially small and medium-sized manufacturing enterprises, and solve the problem of imbalance and mismatch in the structure of supply and demand. At present, under the background of promoting the formation of a new development pattern with the domestic big cycle as the main body and the domestic and international double cycles mutually promoting each other, the Pinduoduo New Brand Plan 2.0 will be more adapted to the needs of China.
The "optimal cost" of Pinduoduo's new brand plan aims to schedule research and production on demand. Data from Pinduoduo shows that under the guidance of the "optimal cost", the marketing expenses of related companies have dropped by 80%, while the order volume has increased by 400%. The new model of "goods looking for people" effectively stimulates potential demand and quickly gathers explicit demand. The deterministic demand for sales can effectively reduce operational uncertainty and improve production and circulation efficiency.
Pinduoduo has realized combined innovation represented by new demand, new supply, and new links, and has therefore changed the traditional e-commerce search model that is dominated by traffic, realized a demand-led recommendation model, and completed supply and demand. In the end, Pinduoduo's strong rise was realized.
Pinduoduo has a new brand laboratory that specializes in data mining and industry guidance. It has now expanded to 830 people. These data experts and industry teams continue to visualize and digitize user needs, and accurately Parameters, functions, dimensions, and pricing strategies are given to cooperative companies to guide their production.
Such as "Bei Yingshuang, Kaiqin, Jiaweishi, Sanhe..." These little-known local production companies in the past have been OEMs for others in obscurity, and their annual sales are hovering at tens of millions of yuan. The brand has become their predecessor. Obstacles. However, after only joining Pinduoduo's "New Brand Plan" for one and a half years, the sales of these companies easily exceeded 100 million.
Guangdong Kaiqin Electric Co., Ltd. (hereinafter referred to as "Kaiqin"), which has been focusing on the production of small household appliances, is one of the companies that benefit from Pinduoduo's new brand plan.
Kaiqin started working with Pinduoduo's team last year. According to consumers' habits, Pinduoduo's team came to Kaiqin to discuss data and analysis results with Kaiqin staff, and at the same time implement product strategy operations. In addition, while organizing and cultivating Kaiqin’s e-commerce operators, Pinduoduo also helped them launch many cost-effective products and achieved 400,000 sales on the platform.
There is also the Shanghai time-honored cosmetics brand "Beili" under Pechoin, which was a standard for Shanghai celebrities in the 1970s and 1980s. If there is no new breakthrough point, it will almost out of people's vision. But starting this year, "Belle" has chosen to cooperate with Pinduoduo to join its "new brand plan."
Nowadays, La Belle has once again achieved a breakthrough and realized the reverse customization of products on the platform-through direct communication with the R&D personnel of suppliers and factories through the most front-line consumer demand data, and rapid response, within three months When the time comes, the products developed will be able to go from concept to final mass production (referring to products with a larger output).
Of these, the biggest boost naturally has to fall on the new brand laboratory of Pinduoduo. Data experts and industry teams continue to visualize and digitize user needs, and provide these accurate parameters, functions, dimensions, and pricing strategies to cooperative companies that join the new brand plan to guide their production. Then it will match the corresponding stable flow. Therefore, related products are born to meet the needs of the majority of users, so these companies can achieve a high conversion rate and repurchase rate, and this is why many of these brands continue to stand out.
Resources such as Pinduoduo's tens of billions of subsidies and Mianpin business group will also join the "Support Resource Package" of the "New Brand Plan" to provide companies with customized brand promotion programs. The main content of the "New Brand Plan" will also change from helping OEM companies to incubate their own brands, and upgrading to four models, namely, OEM companies' own brand cultivation, well-known brand sub-brand building, cutting-edge brand support, and rebuilding of domestic products and old brands.
03
Behind the brand upgrade,
Is the pressure brought by consumption upgrade
The era of fighting has come, and "fighting" is becoming the norm in people's lives.
"Fighting together" means sharing and socializing, and means gathering things together and dividing people into groups. Behind the explosion of group grouping is the evolution of consumers' shopping habits: At present, more consumers have shifted from highly purposeful search shopping to scene-oriented and socialized group shopping.
According to Pinduoduo’s most recent quarterly financial report, Pinduoduo’s MAU increased by more than 80 million in a single quarter, and the net increase in monthly active users is equivalent to two Taobao special editions. The difference in growth rate proves that in the era of mobile Internet, the decisive factor of competition between e-commerce companies is no longer the price, but the model; the traditional search-based e-commerce is being surpassed by new models such as order spelling rooted in social scenarios. It's the old and new conversion of e-commerce.
It uses its own real business practices to perfectly interpret the underlying logic from "Tao Times" to "Fighting Times".
In April this year, Pinduoduo officially launched the "Global Shopping Overseas Station" to directly cooperate with large foreign supply chains, and then joined forces with Amazon to enter the "Black Five" overseas shopping market. In addition, Pinduoduo has achieved rapid growth through “ten billion subsidies” and subsidized top-of-the-line goods such as the iPhone, which also showed us consumption upgrades.
From a user perspective, as the "millennial generation" (born in 1982-2000) grows, they are becoming more and more important in the Chinese consumer market. They are different from the material pursuits of the previous generation of consumers, and they are also influencing the changes of enterprises.
Nowadays, mainstream consumers have more choices. In today's rich material, they have a higher awareness of consumer products. This awareness is indispensable for both product quality experience and spiritual experience. But because some new consumer groups have failed to keep up with their own pursuit of material dual experience economically, this part of unmet needs has become the biggest opportunity for consumption.
From the perspective of channels, the emergence of mobile Internet and mobile payment allows consumers to buy better products at more reasonable prices anytime, anywhere. And companies can also get close to consumers, make decisions from the perspective of consumers, and develop products that can meet individual needs.
The entire consumption logic has been upgraded, so that consumers can pay the same or slightly higher money as before and can buy better products. For example, in the past, you can buy a product with a score of 3 for 10 yuan, and a product with a score of 9 for 30 yuan; now it appears that you can buy a product with a score of 8 for 20 yuan. In fact, 30 yuan products have a certain brand premium, and new consumer brands give the brand premium to consumers, so that consumers can enjoy better products at lower prices. This is an opportunity for new consumer brands.
On the other hand, new channels for new consumer groups, such as short videos, live broadcast platforms, such as Douyin, Kuaishou, Taobao Live... These new gameplays are hardly noticed by luxury brands and big brands. This also gives new consumer brands the opportunity to obtain a rapid rise in traffic at low cost.
From the perspective of supply chain, China has the world's largest supply chain system, and nearly 70% of the world's main consumer product production capacity is in China.
Three factors, the rise of new consumer groups, the emergence of new channels, and the strong Chinese supply chain have provided a huge impetus for the rise of new consumer brands and new domestic products.
It can be said that the underlying reason that really drives the era of consumption upgrade is precisely because of the great diversification of commodity supply, which makes users more and more lazy, more experienced, and more cost-effective.
The single-order model is that consumers actively seek to negotiate directly upstream of the product. Therefore, for the more than 600 million consumers on the Pinduoduo platform, if one group joins together, the price-performance ratio of the product can be improved. This is a good deal. As for the platform, putting together orders not only means lower prices on the consumer side, but also means cost optimization and efficiency improvements in the entire circulation link.
Where does the cost optimization and efficiency improvement of the circulation link turn from? Naturally, the brand and the product itself.
Concluding remarks
Having production capacity but lacking brand recognition is the status quo of many domestic manufacturing companies. After decades of evolution from foundry to design and manufacturing integration, Chinese manufacturers collectively usher in a new hurdle-brand transformation.
In 2020, due to the severe outbreak and continuation of the epidemic, a large number of companies will turn to the domestic market, get rid of the path dependence that relies too much on OEMs, and transform from Chinese manufacturing to Chinese brands. This demand has become increasingly urgent.
The upgrade and launch of Pinduoduo’s new brand plan 2.0 is precisely the timely rain that these domestic brands have long desired. It can not only provide Internet sales channels for such companies, but also help companies incubate their brands, build brands accurately based on product characteristics, and reduce brands. The cost of creation increases the probability of successful self-branding.
For consumers, the greatest value of Pinduoduo’s plan is to be able to provide them with stable and continuous supply of cost-effective industries, truly enjoy the cost-effective dividends brought by China’s manufacturing, and enjoy making their lives more beautiful and more beautiful. Good new product.