Podcast note: 18. Pinduoduo

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
  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
  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
  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

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Arthur Lee

Arthur Lee

An machine learning engineer in Bay Area in the United States