Dada, co-founder of pinduoduo: welcome more platforms to enter the sinking Market

 Dada, co-founder of pinduoduo: welcome more platforms to enter the sinking Market

This achievement was achieved after we encountered unprecedented fierce competition. Dada, co-founder of pinduoduo, said that users would not shop on a platform because of good advertising. They were more concerned about whether the products were cost-effective.

Dada, co-founder of pinduoduo. Picture provided by interviewee

Established only four years ago, pinduoduo is a rare black horse in the domestic Internet industry in recent years. When the user scale is expanded to 500 million, the market value of the company once ranked the fourth in the domestic Internet company, ranking second only to Alibaba, Tencent and meituan.

This achievement was achieved after we encountered unprecedented fierce competition. Dada, co-founder of pinduoduo, said that users would not shop on a platform because of good advertising. They were more concerned about whether the products were cost-effective.

At present, nearly half of the users in pinduoduo first tier and second tier cities

Beijing News: how to look at the rapid development of pinduoduo this year?

Dada: 2019 is a year of rapid growth for pinduoduo. Our number of users has increased from 400 million to 500 million, and nearly 100 million users have chosen to support us with real gold and silver. At present, the proportion of users in the first tier and second tier cities of pinduoduo platform is nearly half. Users in the first tier and second tier cities and sinking markets are enjoying more cost-effective products on pinduoduo platform.

This achievement was achieved after we encountered unprecedented fierce competition. Under pressure, we seek and expand new growth space through innovative businesses such as 10 billion subsidies, new brand plan and agricultural product upgrading, so as to bring more affordable industrial products to rural consumers and more original agricultural products to first and second tier urban users.

Beijing News: how to balance the demand of first tier and second tier city users and low tier market users for commodities?

Dada: the outside world has always been curious about us. From our perspective, the emergence and growth of pinduoduo is the product of Chinas social information revolution.

The popularity of mobile Internet has narrowed the gap between urban and rural areas in terms of information, but at the same time, from the perspective of commodity circulation, barriers between urban and rural areas and people have not been broken, people living in rural areas are difficult to enjoy affordable digital products of science and technology, and the elites in urban areas are also difficult to buy agricultural products with direct production.

Using the advantages of mobile Internet to solve these problems is the main starting point of pinduoduos business this year, and the fundamental reason why we can quickly win users.

Beijing News: new brand plan is a solution put forward by pinduoduo last year to build its own brand for industrial belt enterprises. How is the development of the plan?

Dada: at the beginning of the year, we set the goal of supporting 100 excellent Chinese enterprises for the new brand plan. At present, we have gradually approached the goal. By the end of October, 85 factories have become officially supported enterprises. In addition, more than 600 enterprises have participated in the pilot project.

These enterprises are all model factories worthy of respect in Chinas industrial chain. In the past a long time, they have grown up from scratch, nurturing world-class product design and manufacturing capabilities, but the domestic market did not give them corresponding respect and return.

The most successful retail mode of sinking market is market

Beijing News: as you said, at present, from the data disclosed in the financial report, pinduoduos users are no longer limited to low-end city users, and first-line and second-line users also start to use pinduoduo. Does this mean that the companys early marketing expenses have been rewarded?

Dada: I dont think its the result of marketing expenses. Marketing expenses may bring popularity and influence, but they cant bring users.

Users choose to shop on a certain platform, not because of your good advertising, but because of the cost-effectiveness of the goods. In fact, compared with marketing, pinduoduo has spent more on cost performance. For example, we have developed the agricultural goods central information processing system and built a large number of infrastructure logistics facilities in rural areas.

At the same time, we also reduce the cost of the supply chain through the new brand plan project, including the 10 billion subsidy direct price reduction subsidy to benefit consumers.

Our advantage is to build a complete low-cost capacity. For example, through the group mode of continuous eliminate the middle and supplement the two ends, and with the help of diversified operation means to reduce the traffic cost, our businesses can obtain sales volume and consumers without paying high commissions and traffic fees. These efforts are fed back to the price to ensure that the goods can achieve the lowest price in the whole network.

Consumers vote with their feet and unconsciously compare several platforms. As long as we can create a cost-effective and interesting shopping experience, users will naturally choose us, which is the result of natural evolution.

Beijing News: low tier cities have been highly valued by many e-commerce platforms this year. What do you think of the competition in this respect?

Dada: we very much welcome more platforms to enter the sinking market. In the past, many consumers in the sinking market did not enjoy good goods and services. From the first tier cities to the seventh tier cities, each tier city is a trillion level market. This market is big enough. We hope more people will make the market bigger together. Only when the cake is big can we get more from the competition.

But sinking markets do have some particularities. Traditional supermarket chains and traditional e-commerce began to lay out at least ten years ago, but it has no effect. Why?

Because many enterprises still use the real estate model of enclosure to do it. For example, to build a physical network in rural areas and let consumers come to the store to place orders with computers, such a model, in essence, is to move the shopping mall model in the city to the rural area, which naturally does not work.

Its easy to do real estate business in the city. Its OK to occupy the prime area, but the sinking market is both broad and scattered, and the demand is very different. You want to force people to buy things in circles, which is logically wrong.

I have a thought, what is the most successful retail model of Chinas sinking market in the past? Its not a chain store, its not a commercial real estate, its a market.

The so-called market is the spontaneous gathering of people because of the demand for shopping. Goods and channels are established to meet the needs of people. Everyone gathered from their own villages because they could buy necessities at a low price, and at the same time, the crowd shopping together improved the fun of shopping.

This is what pinduoduos pinduoduo model and distributed artificial intelligence do, which is the logic of new consumption. It is the demand that brings the crowd together. The traditional new retail concept is to build a large shopping mall here, stop the brand business and only sell goods here, and then drive everyone in for consumption.

Question and answer:

Beijing News: what is the most impressive economic event in 2019?

Dada: as an e-commerce practitioner, I am more concerned about the changes in the retail industry. In my opinion, the big change in the retail industry this year is that new consumption is iterating new retail. We believe that the background of new consumption is the central governments proposal to form a strong domestic market. One of the key points to make the domestic market bigger and stronger is that Chinas retail industry needs to reshape its products, profit model and business philosophy according to the needs of consumers, so as to serve new consumers well.

The new consumption idea represented by inclusive, people first and more open and the new retailism of using capital and dominant market position to integrate and control the online and offline channels of brand merchants in order to maximize the benefits of the platform will inevitably be in a long-term game in the future, and the biggest beneficiary is just ordinary consumers.

The birth of new domestic brands is the main mark. Looking at the whole society, this year can be said to be a year of new brand blowout. All of these new brands, without exception, think about problems at the consumer level, and push back their own product manufacturing and sales models from the perspective of demand, so they are also recognized by consumers.

Beijing News: what do you think is the biggest bright spot of Chinas economy in 2019? Will 2020 continue?

Dada: urban and rural consumption convection brings about consumption equity, and the potential of domestic market is gradually breaking out. In the past, mature industrial chain advantages in coastal areas and other regions are reaching Chinas domestic demand market through new channels. This year, we put forward a view that apples go to the countryside and apples go to the city, that is, industrial digital products go to the countryside and agricultural products go to the city. I believe that this trend will also become the main force of change in the retail industry in the next period of time, and also an important driving force for the future of Chinas economy.

Beijing News: which new technology is the most promising in 2020?

Dada: the continuous popularization of 5g technology will further promote information equality, smooth the differences between urban and rural areas and the population, and create new opportunities for entrepreneurship and innovation.

Beijing News: if you start your business in 2020? What can I do? Why?

Dada: first of all, pinduoduo and I are still in the process of entrepreneurship, and we will not have more plans for entrepreneurship in the future.

But in the course of my business, I found that there are still great opportunities in the field of agriculture, and Internet entrepreneurs should pay more attention to this field.

From my experience of continuous agricultural goods up, Chinas agricultural products have lagged behind the construction of industrial system for a long time, with good resources and products, but no good brand. With the popularization and construction of mobile Internet and logistics infrastructure, agricultural products should have the opportunity to emerge more well-known brands with public awareness.

Beijing News: which reform measures are you most concerned about in 2019?

Dada: at the beginning of the year, No. 1 document of the Central Committee put forward the goal of deepening rural reform. During this year, my colleagues and I visited a large number of major agricultural production areas in China and witnessed new changes in Chinas agriculture and rural areas under the guidance of policies. The security system of farmers is improving, the output value of agriculture is increasing, and the income of farmers is increasing. For retail industry practitioners, the revitalization of rural areas is equivalent to injecting potential opportunities of 600 million new people into the Chinese market, which will play an increasingly obvious role in promoting the Chinese market and the Chinese economy.

Lu Yifu, reporter of Beijing News

Editor Chen Shiyi proofreader He Yan

Source: responsible editor of Beijing News: Yao Liwei, nt6056