This article is from WeChat public account: economic observer observers (ID: eeoobserver) , author: Chenyong Wei, from FIG title: Oriental IC
Super Platform
The E-commerce Carnival-Just after the “Double Eleven”, the two e-commerce giants Alibaba and JD.com can’t wait to show their transcripts. Compared with these two giants, Pinduoduo, which is called the third pole of e-commerce, is extremely low-key. It did not show any amazing data, nor did it unilaterally announce any achievements, but just announced in a letter that it was not seeking sales, but only seeking “cost-effective” .
Although it is a long-term practice to not announce the “Double Eleven” record, its low-key has still caused speculation from all sides. Someone tried to find all these clues from Pinduoduo’s financial report. They found that although the revenue of Pinduoduo increased by 122.8% compared with the same period of last year in the third quarter just now, compared with the previous quarters, this growth rate has slowed down significantly.
While people were still guessing the actual performance of Pinduoduo, it broke another big news. On November 26, it was reported that Amazon would open a pop-up store in Pinduoduo to jointly conduct “Black Friday” marketing. As soon as this news came out, all kinds of news about Pinduoduo turned. Some media began to speculate that Pinduoduo has been hiding its strength in order to do something unexpected.
So, what is the real situation of Pinduoduo now? In my personal opinion, as an upstart in e-commerce, Pinduoduo is actually welcoming an important “mid-term exam.” This “mid-termThe result of the “test” is not only about the survival of Pinduoduo, but also about the future of the entire Chinese e-commerce landscape.
From the “sink market”
As a four-year-old company, Pinduoduo’s start is perfect. While traditional e-commerce giants such as Ali and Jingdong are fighting for the “market within the five rings”, Pinduoduo quietly extended its tentacles to the vast “sinking market.”
The so-called sinking market refers to cities below the third tier, as well as markets in counties and rural areas. For a long time, this market has been regarded as unprofitable hard bones and ignored by e-commerce giants. But in fact, this is largely a bias and an illusion.
First of all, This market has a very large population base and very high development potential. According to the “Research on the Development of Sinking Markets and the Value of E-commerce Platforms” released by the Ministry of Commerce’s Institute of International Trade and Economic Cooperation, the current sinking market population is about 670 million, accounting for about half of the country’s population.
Second, The consumption power in this market is actually not as low as people think. “58 Tongzhen” has released a “Sinking Market User Survey Report”. The report shows that although 75.67% of the sinking market users have an average monthly income of less than 5,000 yuan, 58.23% of them 41.04% owned passenger cars with no mortgage. It can be seen that although the revenues of users in the sinking market are indeed lower than those in the “fifth ring” consumers, the necessary expenses for accommodation and commuting are relatively small. With the two offsetting, the consumer power in this market is actually much higher than we usually think. Especially in recent years, with the economic development, the income of the sinking market residents has increased rapidly, which has caused them to have a huge desire to upgrade their consumption, and the market potential that has erupted is also very amazing.
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