The taste of gunpowder, which is cost-effective and competitive, is getting stronger and stronger.
“Billions of subsidies” is no longer new.
On Dec. 11, JuCai announced that “10 billion subsidies” was officially launched. Although it went online during the Taobao Double 12 period, Ju said it was cost-effective that the follow-up “ten billion subsidies” will become a normalized activity. As Lenovo revealed at the third quarter financial report not long ago, Pinduoduo ’s “Ten Billion Subsidy” plan will continue in the next few quarters, and the taste of gunpowder that is cost-effective and competes with Pinduoduo is getting stronger and stronger.
Similar to Pinduoduo’s choice of subsidy core categories, the products with a cost-effective 10 billion subsidies for the first phase of launch are also well-known big names, including iPhones, Dyson hair dryers, Nintendo game consoles, and dozens of top “tip products” . The price of iPhone 11 is only 4499, and the price of Dyson V8 vacuum cleaner is only 2099, which is the lowest price in the entire network.
Cost-effective “ten billion subsidy” products
These sharp goods originate from the “Smart Goods Pool” which is cost-effectively subsidized by 10 billion yuan. This product pool is composed of 100 to 200 explosive products, which is the main model of 10 billion subsidies, and comes from high-quality channels such as Tmall self-operated and brand-directed, and is equipped with high-standard logistics and after-sales. Liu Bo, general manager of Tmall Marketing, said that the cost-effective 10 billion subsidies must make consumers “reliable to buy, comfortable to buy”, and there will be no such cases that affect the consumer experience.
Ju cost-effective launch of “ten billion subsidies” is another important action of Ali’s sniper to sink the market. In the past Double 11, the cost-effective “ten million explosion models” created 216 explosive products with sales exceeding 100,000. The most popular mobile phones such as iPhone11 and Huawei Mate30Pro also had more than half of their orders from the sinking market.
In June of this year, Pinduoduo participated in the e-commerce platform’s mid-year promotion for the first time, and launched a “ten billion subsidy”. During the 618 period, only iPhone series products sold more than 350,000 units. The financial report for the third quarter just now shows that daily active users of Pinduoduo ’s “Ten Billion Subsidy” entrance have exceeded the 100 million mark. More than 2,800 domestic and foreign brands have participated in the program, and more than 23,000 popular subsidy products.
There is no stopping to taste the sweetness of a lot. At the financial report, Huang Yan said, “Ten billion yuan subsidy is not a slogan, every penny spent is worth it. The next quarter will continue the” ten billion subsidy “strategy.
Previously, according to the Beijing Daily, Pinduoduo once again offered “ten billion subsidies” for Double 12 and will also dynamically update the “ten billion subsidies” catalogue according to consumer demand to include new brand goods at any time. ; For the old goods that consumers love, they will enjoy subsidies for a long time, and the platform will replenish stocks repeatedly.
Differing from Pinduoduo ’s use of subsidies to occupy the upward market, the cost-effective “ten billion subsidies” are more about helping brand products sink. As Pinduoduo is increasingly accepted by users in first-tier and second-tier cities, it ’s cost-effective “Sneak attack” will make Pinduoduo face more pressure in sinking markets.