Liang Ning, a consultant of Baidu group and known as Zhongguancuns first talented woman, revealed the mystery of pinduoduos subsidy of 10 billion yuan in his latest public speech: in the short term, subsidies for e-commerce platforms are a bilateral game, with supply before transaction. But from a longer-term perspective, the evolution of e-commerce platforms depends not on subsidies, but on who is more accurate. The essence of business is cash realization. Who is more accurate means that the realization efficiency is high, and the resources will surely lean towards the direction of high realization efficiency.
Nowadays, pinduoduos recommendation algorithm is the most accurate among the three e-commerce companies, and the user side has network effect, so pinduoduo is stronger. Taobaos algorithm is doing keyword related recommendation, while pinduoduos algorithm tries to understand users search motivation and preference. Taobao has no network effect on the consumer side, while pinduoduo users are valuable to users. In fact, precision and network effect are the core words in Zeng Mings Book Intelligent commerce. But the best way to carry out his idea is pinduoduo.
The following is based on Liang Nings public speech:
A big guy asked me: can pinduoduos 10 billion subsidy change pinduoduos customers, attract people who buy expensive things, and let businesses selling expensive things start to sell things on it?
I said that if we look at half a year, it is a bilateral game. Business is sure to sell before buying, and supply before trading.
But if we look at it from a 3-5-year perspective, it should be an evolutionary approach. On such an evolutionary path, it is not the 10 billion subsidies at this time that play a decisive role, but who is more accurate. Because the essence of business is to realize, who is more accurate means that the realization efficiency is high, and the resources will be inclined towards the direction of high realization efficiency. Therefore, the future business ecology must be a collaborative evolution with precision as the core.
Taobaos recommendation is much better than Jingdong, but its not as good as pinduoduo. You can search Taobao for one, such as Wuxi spareribs. You can see the related recommendation of Taobao or Wuxi spareribs and sanfengqiao, which are the key words matching.
I search for Wuxi spareribs on pinduoduo. Besides Wuxi spareribs and sanfengqiao, pinduoduo also recommends Sixi meatballs to me. What does that mean? Taobao is doing keyword Association, while pinduoduo is doing user understanding. It tries to understand my search motivation and preference.
It seems that both Taobao and pinduoduo are shopping platforms, but in the intelligent closed loop of their internal operation, their scene goals are different: the goal of Taobao is to let users Taobao. Pinduoduos goal is to make users addicted.
Wechat is the most powerful network effect product. Because users are valuable to users, users need to pull more users.
But pinduoduo has a network effect. Pinduoduos users are valuable to users. If you help me spell a group, Ill cut you a knife, and then you can provide me with a shopping inspiration. The network effect is at the heart of pinduoduos growth miracle over the past few years.
This can be seen in a user survey conducted by Penguin think tank. They found that 44% of the reasons why users choose to shop in pinduoduo think it is easier to compete with acquaintances.
What does this mean? Users dont know what they want, but I want to eat fruit. I can eat whatever Im pulled to do. This is a typical stupid user.
Taobao only uses the method of artificial intelligence to continuously recommend, but the recommendation of acquaintances also pulls you to spell orders, which is a more effective promotion for stupid users.
24.8% of people bought things they had never used or seen before.
This is when group buying started, many people went to five-star hotels that they had never eaten before.
Before the merger of meituan and Dianping, I always thought that there were more users of comments than meituan, but in fact, meituan users were three times as many as those of Dianping. Why?
Because the scene of commenting users is that I am nearby, what do you want to eat and eat something good. The scene of meituan is to find a place to eat at a discount.
Then compare the shopping habits of users. For Taobao and Jingdong users, 93.1% searched directly, and then purchased according to sales volume and evaluation. Pinduoduo starts from the areas of second sales, special sale, list and free order. This is the difference between typical Daming users and stupid users
The other is to go to the discount area first to see whats on sale. Then Ill pick what I need and I havent seen anything on sale before I buy it.
In fact, precision and network effect are the core words in Zeng Mings Book Intelligent commerce. But the practitioner who carried out his idea best was pinduoduo.
Todays Taobao, the core is the head effect. The top products, the head of the products, the head of the brand, the head of the marketing investment, the head of the live network red get the biggest dividend on this platform. Will Taobao keep up with precision and network effect? After all, the age of intelligence is just beginning. If Taobao dares to say that I dont follow these two cards, we dont need to look forward to its future.
Source of this article: Wang Fengzhi, editor in charge of Chinanet_ NT2541