Author: Konishi
The price war seems to be a curse that the e-commerce platform ca n’t get tired of and ca n’t escape.
On the evening of April 15, Apple announced that the iPhone SE second-generation pricing will start at 3,299 yuan. On April 17, Pinduoduo announced that the price of the second-generation iPhone SE subsidy will be 2899 yuan, and 400 yuan coupons will be issued at 1:00 pm on April 21st.
The next day, Juzui announced that the price of the second-generation iPhone SE subsidy will be 2799 yuan. The way to participate is to purchase by lottery, limited to 2000 pieces. As of April 21 at 2 pm, 426579 people have participated.
According to the China Securities Journal, Apple ’s online store customer service said, “There will not be any price reductions for newly launched products.” That is to say, no matter whether it ’s more or more cost-effective, it will be subsidized by money. Who is cheap.
The intent and purpose of a lot of cost-effective sniper fights need not be repeated.
More fights now become Taobao ’s rivals than they went online in September 2015, and have grown rapidly since then. According to the prospectus, during the 12 months ended June 30, 2018, Pinduoduo GMV reached 262.1 billion yuan and the number of active buyers reached 344 million, making it the third largest e-commerce platform in China.
In April of this year, APP Annie released the “Top 1 List of Global Popular Apps in the First Quarter of 2020”, with more monthly active users (MAU) Taobao rose by two places, ranking ninth over Taobao; Taobao fell by two places and ranked tenth. The open battle between the two e-commerce apps became more intense.
In order to fight against Duoduo, Alibaba fully restarted the planning in March 2019It is estimated that the tens of billions of subsidies will be launched at the end of 2019, and the target is to fight a lot in the third and fourth tier cities.
Alibaba is afraid of the transfer of traffic, and Pinduoduo tries to get rid of the “consumption downgrade” and “counterfeit” and other questions. The real-world investment of 10 billion in subsidies has become the same choice between the two. At present, users have not seen such intense and substantial subsidies for a long time.
The question is, does money really work?
“Ten billions of subsidies” tug of war
Although the era of money-burning is long over, Pinduoduo still plans to use tens of billions of subsidies to open the door to mid- to high-end customers.
Pinduoduo launched the marketing strategy of “10 billion subsidies” as early as June 1, 2019. The scope of “10 billion subsidies” includes many categories such as apparel, digital, beauty and so on. The tens of billions of subsidies are marked with genuine product guarantees, “fake one and pay ten.” The tens of billions of subsidized products will be subsidized by 5% -50% on the basis of the cost price (that is, the sales price of the goods = cost price-subsidy amount) , The selling price is lower than the market price, the total amount of commodity subsidies during the event is 10 billion, until the supplement is completed.
For this reason, Pinduoduo has set up a “10 billion subsidy group” internally to compare the prices of other channels within 24 hours to ensure that the price of products is the lowest on all platforms, and the main discount brands are well-known brands.
The purpose of Pinduoduo ’s introduction of tens of billions of subsidies is obvious: to attract users in first- and second-tier cities.
How fragrant is the subsidy initiated by Pinduoduo? During the Double 11 period last year, the subsidy for the iPhone 11 series was up to 1,400 yuan, and the AirPods Pro, which cost 12,799 yuan last year, was out of stock that day. The copywriting of Pinduoduo has been changed to “click my blood to earn”, there is a kind of dedication for consumers to sweat and sweat