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.
How does Pinduoduo grow up?
- wechat payment -> infra
- flow comes from Alibaba group because Alibaba focus on increasing revenue per user -> cheaper biz go away
Why does Alibaba group do that strategy?
- The amount of user is hard to grow up, so they tend to increase the revenue per user -> they earn money with conversion
- They tend to recommend high quality product with high price to increase the revenue per user
- 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
- Eventually Alibaba earn money
What is difference between Amazon and Alibaba?
- Amazon: no bidding process, only recommend goo product -> small biz still earn money
- Alibaba: bidding process -> big biz earn impression; small biz cannot attract user attention
What properties of Pinduoduo?
- cheap -> easily Impulsive consumption
- need to group purchasing -> easily Impulsive consumption
- no show the demo for the biz -> the bargaining power of biz is low, user does not know and care the biz too much