In the past, when people heard about e-commerce, they would think of Ma Yun's Taobao and Tmall, and Liu's shopping mall. For a long time, Ali and JD.COM, two e-commerce giants, were caught in a fight, which seemed to be incompatible. But who would have thought that in just three or four years, Pinduoduo has risen rapidly and joined the online e-commerce war industry.
In a few years, Pinduoduo will soon catch up with Liu. What is even more frightening is that all kinds of goods in Pinduoduo are cheaper than Taobao. Taobao is facing a competitor Pinduoduo whose market share has been rapidly eroded, and it has no power to fight back.
Taobao and Pinduoduo had different business models. Taobao focuses on consumer groups in first-and second-tier cities, while Pinduoduo focuses on consumer groups in third-and fourth-tier cities. After winning consumer groups in third-and fourth-tier cities, Pinduoduo immediately returned to first-and second-tier cities, dumping goods at low prices in the market, which made Taobao somewhat passive. Finally, Pinduoduo became Taobao's biggest competitor.
Now many netizens have suggested that things on Taobao used to be very cheap, but after the rise of Pinduoduo in recent years, goods in Pinduoduo are cheaper than those on Taobao, and Taobao really met new competitors this time. Take clothing as an example. The same clothes are much cheaper in Pinduoduo than Taobao. I wonder how Pinduoduo managed to keep commodity prices so low. In this regard, we think it is not surprising that Pinduoduo is cheaper than Taobao, which is mainly reflected in the following three aspects:
First of all, Pinduoduo and Taobao have different marketing models. Pinduoduo focuses on the group buying mode, that is, users can mobilize their family, neighbors, friends and colleagues to buy together. Because of the scale effect of group buying, there will be a lot of room for price reduction. For merchants, so many people come to buy, which keeps the price very low, but they can also make money through "small profits but quick turnover".
Originally, I produced a certain commodity, which could not be turned over several times a year, or even unsalable. But now the group buying in Pinduoduo, although the price pressure is very low for me, all the goods can be realized quickly, and they can continue to be put into reproduction and then realized, so that for merchants, the turnover of goods in one year is more, which is still profitable.
Furthermore, Pinduoduo is different from JD.COM and Ali, and Pinduoduo is a rising star, so Pinduoduo can attract a lot of strategic investment funds, and Pinduoduo will give some subsidies to businesses to reduce their operating costs. Due to the large amount of subsidies given by Pinduoduo, businesses can not only reduce operating costs, but also quickly occupy more market share through low-price sales.
Of course, subsidies cannot last forever. As long as Pinduoduo merchants occupy enough market share, subsidies will be cancelled. To put it bluntly, it is to occupy the market through low-price competition (or subsidize businesses). As long as the market share is occupied, isn't the price of goods determined by the merchants?
Finally, behind the low price in Pinduoduo, there are also many fakes. In fact, all goods are cheap, you can't be genuine, absolutely cheap. In order to sell their stocks, many merchants on the Pinduoduo platform keep lowering prices, which will lead to poor product quality. For consumers in big cities, it may be very cold.
But for consumers in third-and fourth-tier cities, because they don't have much money at hand, they will still buy them back for use knowing that they are fake and shoddy goods. For them, as long as they can use it, they will not talk about the quality of the products. Because Taobao has cracked down on fake and shoddy goods, it is not strict with many products, so there are more fake and shoddy goods with many products, and the price is definitely lower than Taobao.
Many consumers don't understand why Pinduoduo is cheaper than Taobao for the same shopping. This is mainly because Pinduoduo is a group purchase, which makes the goods have more room for decline, while Taobao merchants are mainly individual retailers, and the prices cannot be reduced. Pinduoduo is now favored by a lot of capital, and a lot of capital flows to Pinduoduo. Pinduoduo, on the other hand, subsidizes merchants with money and encourages them to dump at low prices, thus quickly occupying the market share of various commodities. More importantly, Pinduoduo allows the existence of fake and shoddy goods, and all kinds of fake and shoddy goods exist, which makes fake and shoddy goods and reduces operating costs.