Podcast note: 18. Pinduoduo

This blog is the note and review about the podcast for 18. 拼多多=中国的Costco in 疯投圈.

Podcast link

How does Pinduoduo grow up?

1. wechat payment -> infra
2. flow comes from Alibaba group because Alibaba focus on increasing revenue per user -> cheaper biz go away

Why does Alibaba group do that strategy?

1. The amount of user is hard to grow up, so they tend to increase the revenue per user -> they earn money with conversion
2. They tend to recommend high quality product with high price to increase the revenue per user
3. The price of most of product is low -> low price sensitivity -> even recommend high price product, the conversion rate will not go down too much
4. Eventually Alibaba earn money

What is difference between Amazon and Alibaba?

1. Amazon: no bidding process, only recommend goo product -> small biz still earn money
2. Alibaba: bidding process -> big biz earn impression; small biz cannot attract user attention

What properties of Pinduoduo?

1. cheap -> easily Impulsive consumption
2. need to group purchasing -> easily Impulsive consumption
3. no show the demo for the biz -> the bargaining power of biz is low, user does not know and care the biz too much