Original title: Tianding Securities: what is the reason why Pinduoduo can stand out in the gap between BABA and JD.com? Source: Tencent News

I don't know since when our moments and various WeChat groups are full of group purchase news. Although everyone is bored, Pinduoduo is still alive and well. You know, China's e-commerce enterprises are basically saturated. Pinduoduo has been established for less than three years. Relying on Wechat's unique protection policy, the monthly flow has reached 40 billion. The growth rate has surpassed all platforms and has become one of the three giants of e-commerce. It can be said that Pinduoduo is a group of dark horses in the e-commerce community!

The two basic points of Pinduoduo's rise can be applied to any industry:

1. The martial arts in the world are fast but not broken. In the case that the opponent has not yet understood how to react, you can quickly seize users without thinking about making money, but you must get the largest market share.

two。 Come from the masses and go to the masses. China has 1.4 billion people, and this is the only country with such a large consumer group in the world. the more universal the services provided, the higher the probability of success.

The characteristic of Pinduoduo lies in the word "spelling". Let's talk about the reasons why it can survive in the gap:

The development of a new generation of information technology represented by 4G is an important reason for the success of Pinduoduo's social e-commerce. 4G's network communication technology provides fertile soil for social e-commerce. The new generation of instant messaging software represented by Wechat has greatly changed people's communication tools in the past. Weibo Corp, QQ, short video and self-media are all the products of 4G information and communication technology, which have greatly changed the way people communicate. Pinduoduo rose rapidly through the huge flow of Wechat at the beginning of its establishment, and quickly seized Tencent as the main flow after the rise.

Pinduoduo's price is even lower. In fact, the merchants above Pinduoduo, that is, the merchants on Taobao, just move the goods on Taobao to Pinduoduo to sell them. Pinduoduo will be much lower or even much lower in pricing for the same thing. "the countryside surrounds the city." the rural area is a big market, and the demand increases with the improvement of living standards. They hope to buy more affordable products with less money. Of course, Pinduoduo is a very good choice, including urban residents. Many of them choose to buy on Pinduoduo.

The root cause of Pinduoduo's social e-commerce: the improvement of the organic composition of capital has led to a general decline in the relative purchasing power of consumers, coupled with a decline in the economic cycle, a decline in economic growth and a decline in income. there is also the country's policy of reducing leverage, which leads to an increase in the proportion of consumers' daily expenses. in order to maintain the current standard of living, daily expenses need to be reduced.

There can be different versions of Pinduoduo in all industries. In fact, we have seen the success of Pinduoduo, various social industries have carried out varying degrees of imitation, and have also achieved success. In fact, under the action of important and fundamental reasons, anyone will inevitably make decisions such as preserving the value of assets and reducing the proportion of expenditure. With the development of 5G information technology, a new model will appear in the future!

The point of view is only for reference and learning, does not constitute investment advice, operational risk at your own risk!