Pinduoduo's success, these factors are indispensable

 

Pinduoduo, established in September 2015, is a third-party social e-commerce platform focusing on c2m gruop shopping. By initiating group buying with friends, family and neighbors, users can buy high-quality goods at a lower price and experience more benefits and fun. The social concept formed through communication and sharing has formed Pinduoduo's unique new social e-commerce thinking.

On April 9, 2020, APP Annie, a third-party data platform, released the list of global popular applications in the first quarter of 2020, showing that Pinduoduo Mau (monthly active user) has surpassed Taobao. In recent years, Pinduoduo has developed rapidly. So why is Pinduoduo developing so fast?

 Cheap commodity price

In terms of price, the price of goods on Pinduoduo platform is much cheaper than that on Taobao and JD, and the number of goods purchased is less, you can also enjoy the package mail service, and sometimes there is a situation of 1 yuan second kill, which attracts a large number of consumers in the third and fourth tier cities.

 In addition, Pinduoduo will spend more than 10 billion yuan to subsidize the big brands in the whole network, including apple, Xiaomi and other brands. On the basis of the cost price, Pinduoduo will pay for the subsidy. From clothes, shoes, skin care products to TV, air conditioner and refrigerator, there are many things to participate in the activities, so as to attract more consumers. And they guarantee: all the goods marked with "10 billion subsidy" are authentic. Guarantee measures are: unite China Life Insurance launched a genuine insurance, false one compensate 10. In general, the 10 billion subsidy is the price after the platform makes profits, which directly reduces the price to attract consumers.

Group buying and distribution

Group buying mode, many people join this group buying activity the price can be preferential. Many consumers in the group buying, in order to make this activity success, they will reshare these information to Wechat, which has also played a great role in Pinduoduo's user growth.

Distribution mode, in short, when you become a distributor, if users buy goods from you, you can get a rebate. From this point of view, it seems that the users on this platform are also businesses. For this kind of distribution mode, users only need to move their fingers to complete things, most of them are willing to do.

Tencent's support

Another reason why Pinduoduo can be promoted on a large scale on Wechat is that users can invite friends to help bargain so that they can get the goods they want for free. This kind of welfare greatly improves the participation of users. From the listing of Pinduoduo, in terms of shareholder structure, Huang Zheng, as the founder, accounts for 50.7% of the shares, while Tencent, as the second largest shareholder, accounts for 18.5%. It is not difficult to find that the development of Pinduoduo over the past three years is inseparable from the Tencent platform, and a large number of users place orders through Wechat. Because of the existence of Tencent, Pinduoduo's customer acquisition cost is lower. Pinduoduo's rapid development is inseparable from the strong support of Tencent, the second shareholder.

It took 10 years for JD, 8 years for Vipshop and 5 years for Taobao to go public. Pinduoduo was established in April 2015 and listed in July 2018, which took only two years and three months.

Pinduoduo's success has a lot to do with its preemption of the sinking market. There are not many people in China who can spend more than 50000 yuan online a year, most people may spend thousands of Yuan online, with an average of 1000-2000 yuan. And Pinduoduo provides good and cheap goods, which can just meet their basic needs of daily consumption.

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How much do you know about wechat?

 

Wechat is the most popular social app in China, Chinese use wechat to communicate with each other, share life with friends, and consolidate feelings. When asked what kind of software wechat is, the simple answer is that it is a tool for chatting, but is that really the case?

Now wechat is far more than just a chat tool. In fact, its status has far exceeded QQ and become an operating system. Chinese people spend more than 40% of their time on wechat every day.

Wechat mainly has the following functional modules:

Moments

When there is no wechat news for the time being, you may habitually browse your wechat moments to see what interesting things your acquaintances and friends have shared during this period. For individuals, the significance of moments is to record personal life and share personal interests. However, for wechat business, the moments is a huge pool of private traffic and a good place to make money. In 2013, some shoes and bags with clear price tag began to appear in the moments, which can be said to be the earliest prototype of wechat business. With the popularity of wechat business’ s facial mask, all kinds of wechat businesses have sprung up. 2014 has become a spring in the development of wechat business.

Official account

The official account of WeChat is a commercial platform for media operators and a platform for users to understand commercial products. The official account is the window to the outside world that many enterprises must have. A good official account can create a very positive brand image; Some promotional activities, marketing hotspots, can be directly informed of users in the official account, and customers who follow relevant official account must be better than those who don’t follow; The official account can often do some small activities, such as prize winning quiz, and user contribution, etc., to raise fans' attention to the company; Another function of official account is the public relations window of enterprises, especially after the official account is certified, which is more convincing, it can set up an authoritative image in the minds of users, about some products knowledge and information, it is easy to for customers to inquire.

 Mini program

Wechat mini program is an application that can be used without downloading, but also an innovation. After nearly two years of development, a new wechat mini program development environment and developer ecology have been constructed. Wechat mini programs are also an innovative achievement that can really affect ordinary programmers in China's IT industry over the years. More than 1.5 million developers have joined in the development of wechat mini programs. The number of wechat mini programs exceed one million, covering more than 200 industry segments, with 200 million daily users. Wechat mini programs also support subway and bus services in many cities. The development of wechat mini programs has brought more employment opportunities. In 2017, 1.04 million people were employed by wechat mini programs, and the social effect has been continuously improved.

Channels

Channels is a platform for recording and creation, which allows users to record and share life and ideas through videos or pictures. Different from the moments, the content of momnets can only be accessed by friends, while the content released in the channels can be accessed by the public. In other words, the channels belongs to a window to understand others and the world.

In addition to these functions, users can also directly carry out shopping, payment and other activities on wechat. It is because of the convenience of wechat that it is easy to penetrate into people's basic necessities of life. Now to meet new friends or new customers, people all say "add a wechat" or "I'll scan you", instead of "what's your mobile phone number?"

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Do Chinese people also use olive oil?

 

Olive oil is the natural oil extracted from olive fruit, known as "liquid gold", "Queen of vegetable oil" and "Mediterranean manna".

Among the major olive oil producers, Spain accounts for about one third of the world's total, Italy accounts for one fourth, Greece accounts for one fifth, and other oil producing countries include Tunisia, Turkey, Syria, Portugal, France, Egypt, etc. Italian olive oil production ranks behind Spain, but its number of oil mills is several times than that of Spain, so it becomes the largest olive oil exporter.

For a long time, soybean oil, palm oil, rapeseed oil and peanut oil have dominated the consumption of edible oil in China, accounting for nearly 90% of the total consumption. Olive oil, corn oil, sunflower seed oil and tea oil have a small proportion. Olive oil is generally purchased by rich families. For ordinary families, as a kind of high-end edible oil, a bottle of imported 250ml olive oil costs 39.9 yuan, rapeseed oil costs 14or16 yuan/kg and olive oil costs 100or120/kg, which is several times higher than other kinds of edible oil. In addition, olive trees are rarely planted in China and are rarely used to extract oil. Chinese people are used to eating soybean oil, peanut oil and other vegetable oils, and it is difficult to accept the new taste in a short time.

But with the rapid development of social level, people's living conditions become better and better, spiritual and material culture is more and more rich, while enjoying the welfare brought by the country's prosperity, so people are more and more pursuing their own health and longevity, it is the modern people's attention to physical health, more and more people learn health knowledge, and pay more and more attention to health.

First of all, we should pay attention to health preservation from the beginning of eating. For example, we should eat vegetables made of olive oil, organic rice, organic vegetables, and so on. In addition, TV, media and other media spread the benefits of olive oil, so the society has started to use olive oil as a nutrition and health preserving food.

With the change of people's consumption consciousness and the deepening understanding of olive oil, olive oil is welcomed by more and more consumers. Data shows that China's annual consumption of olive oil is about 80000 tons from 2015 to 2017, and it continues to increase at an average annual rate of more than 12%. The annual consumption of olive oil is expected to reach about 100000 tons. The import tariff of olive oil is 10%, and China's import volume of olive oil will be 54000 tons in 2019. Most olive oil brands are imported from Europe, with Spain dominating the market share of more than 80%.

At present, the leading brands in China's imported olive oil market include Olivoila, Betis, MUELOLIVA, BORGES, Andasaludsia, FILIPPO BERIO, AGRIC, BELLINA, Carbonell, etc. Six of these brands are from Spain, two from Italy and one from Greece.

With the development of science and technology, new varieties will appear in the next few years, and consumers will have more choices. From the current market situation, several large edible oil manufacturers in China have started to sell more nutritious and healthy edible oils such as camellia oil, walnut oil and olive oil.

Generally speaking, from the perspective of market consumption, although China's nutrition and health edible oil market is in its infancy, it caters to the trend of people's higher and higher pursuit of health and nutrition. Therefore, nutrition and health edible oil will have broad market prospects and will be a new bright spot in China's edible oil market.

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How New Zealand skin care brand——Geoskincare became so popular in China?

 

The brand of geoskincare belongs to nzskincare Company Ltd, a New Zealand based company established in 2000. It is committed to providing safe and efficient skin care products for the public and beauty loving women, maintaining the ideal state of skin and solving the needs of skin care.

In 2014, geoskincare officially landed in China. At the beginning, geoskincare mainly developed offline, and has been in a low-key state. In the second half of 2019, geoskincare's Shuining Qingrun isolation cream is popular all over the network, becoming a large single product with monthly sales exceeding 500000. Until 2020, geoskincare 's isolation cream has a stable monthly sales of more than 500000 in Tmall and Taobao, and is the sales champion of similar products for two consecutive times.

Marketing has always been an important part of the beauty brand, and now the rise of many new brands has a close relationship with Xiaohongshu, Douyin, Taobao, and other platforms.

Geoskincare also captured the dividend. In the initial marketing, they have been looking for traffic gathering place, and put the effect in the first place, which also delimited the initial moat for them.

In 2018, Xiaohongshu recruited a large number of stars to join in. Geoskincare seized the opportunity to quickly cooperate with a number of stars and net influencers to recommend the products, repeatedly strengthening users' understanding of geoskincare and attracting them to buy and share.

When the industry still has a wait-and-see attitude towards live commerce, geoskincare has entered the market. The accurate capture of new channels makes it the "first eating crab" brand. The first station of geoskincare live streaming chose to cooperate with Weiya, the head anchor of Taobao live, which also laid the foundation for geoskincare live commerce to choose the head anchor of the platform.

In addition, geoskincare clips the live video of Viya promoting its products to a short video, and this short video appears frequently in Douyin; bloggers also test their products densely, and put videos on Douyin. The direct effect of this "overwhelming" promotion video is to make people feel that the brand is "popular " and stimulate the purchase desire of new users.

Nowadays, with the information of skin care industry becoming more and more transparent, more and more consumers begin to pay attention to brand endorsement, product composition, and consumption tends to be rational. Therefore, it is easy to understand why the current media platform has become an important marketing battlefield.

It is worthwhile to draw lessons from geoskincare, which only focuses on promoting several products such as "Water Mask", "Makeup Base" and "Cleansing Mask". In fact, the brand currently has about 50 products. In recent years, more and more beauty brands have achieved explosive growth through similar strategies. On the one hand, with a single category or several single products as a breakthrough, online channels can quickly establish word-of-mouth and brand awareness, with low trial and error costs and relatively controllable risks. On the other hand, it is also a more feasible development path when large beauty groups occupy a strong market share.

Behind China's cheese market, there is a demand of 100 billion yuan

 

In China, with the improvement of family consumption ability, parents have higher requirements on the nutritional level of children's diet. Children's cheese stick is not only high in nutrition, but also suitable for children's taste and shape, so it has become a popular snack for modern babies. Cheese sticks can be seen on billboards in offline supermarkets, online shopping malls and even elevator buildings.

At present, China's cheese market is highly dependent on imports, and foreign brands dominate. According to Euromonitor data statistics, China's cheese market CR3 in 2019 is 36.78%, and all of them are foreign-funded brands, which are French Milkana (22.7%), La Vache qui rit (7.7%) and Anchor (6.4%). From the perspective of China's local brands, Milkround has the highest market share, with a market share of 4.8%, while Mengniu, Guangming and Sanyuan, the traditional dairy leaders, accounts for 2.8%, 0.9% and 0.9% respectively.

 

In recent years, leisure dairy snacks with health, delicious, convenient and many other advantages, become a hot category in the market. By seizing this "outlet" skillfully, Milkround has created gratifying achievements and become a leading enterprise in China's cheese market through occupying  trend category space, strengthening product research and development, broadening channel layout, and enhancing brand publicity. From November 7, 2020 to December 4, 2020, the sales volume of Milkround cheese has reached 33.8% nationwide.

 

Because cheese is relatively strange to most Chinese people, they don't have the habit of eating cheese. On the contrary, the consumption of liquid milk is more than that of dry dairy products. Further extending to the more subdivided children's cheese market, the demand is very small, and the actual sales volume is not big enough. Therefore, China's overall cheese consumption is still in the cultivation period, with retail sales accounting for only 1.5% of China's dairy consumption in 2018. In addition, China's cheese consumption is still limited to high-end consumer groups and ethnic minority areas, and there is still a big gap compared with foreign popular consumption, but this is not a good opportunity?

 

The demand of Chinese consumers for dairy products is gradually changing to short shelf life, zero additives and high nutritional value. Cheese is gradually accepted by Chinese consumers with its high nutritional value. The proportion of cheese consumption in dairy products in China has increased from 0.5% in 2009 to 1.6% in 2019, which has more than tripled and is still in the process of continuous and rapid improvement.

 

Although the current Chinese cheese industry is only 10 billion, with the steady increase of the size of dairy industry and the upgrading of dairy consumption to cheese, the market size of Chinese cheese can reach hundreds of billion.

 

At present, the pain point of Chinese cheese industry mainly lies in consumers' cognition.

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Have you ever eaten these brands of self heating hot pot in China?

 

In recent years, online shopping, takeout and other forms of providing convenient services for life have gradually emerged in China, which has also spawned the so-called "lazy economy". In particular, the pace of life of contemporary young people is relatively fast. In order to save time and effort, people rely more on the "lazy" product of convenience food. According to the consumption data of lazy people released by Taobao, Chinese people spend more than 10 billion every year on "laziness", and the demand for laziness after 1995 is growing rapidly. In terms of consumption of self heating convenience products, the proportion of post-95 and Post-00 groups is as high as 47.75%.

Among them, self heating hot pot is popular among young Chinese. Self heating hotpot is a kind of fast food, which can be cooked by adding cold water without fire or electricity. It is mainly composed of ingredients, ingredients pot, pot cover, outer pot and heating bag. Its heating principle is to use the material in the heating bag to contact with water, releasing heat, so as to make the food in the upper layer of food pot absorb heat and then increase the temperature. In China, the top three self heating hotpot brands most popular with young people are Zi Haiguo, Hai Dilao and Mo Xiaoxian.

In January 2018, the self heating hot pot series of Zi Haiguo was officially put into the market; At the end of March, the Tmall flagship store of Zi Haiguo went online and achieved the result of "No.1 single product sales in the whole network" within 24 hours. In 618, 2018, Zi Haiguo achieved the best performance of Tmall JD dual platform in terms of sales volume and traffic; In the third quarter, it achieved a sales volume of over 100 million yuan and entered the offline channels.

Self heating hotpot is a relatively new and controversial product. As a leader in the industry, Zi Haiguo has grown rapidly although it has not entered the market early, it even once achieved the brand name was regarded as a category word by consumers.

In 2017, Hai Dilao launched five self cooking hot pot products in the first batch, contributing 61.34 million yuan in revenue that year. From 60 million to 1 billion, Hai Dilao only took less than three years, which directly confirmed the dividend space of this category.

During the double 11 period in 2018, the turnover of self heating hot pot reached 4.53 million, 2.7 times higher than that in 2017. The epidemic accelerated the popularization and awareness of convenient self heating food, and became the "category winner" in the special period. Hai Dilao self heating series products were frequently out of stock.

In the self heating hot pot, Mo Xiaoxian quickly occupied the market with high cost performance. In August 2017, Mo Xiaoxian landed in Taobao, and in 2018, it became the first brand in Taobao's self heating hot pot sales. In 2019, it achieved more than 400million sales, ranking second to Hai Dilao in the self hot pot, ranking the second in the industry. After the success of online, Mo Xiaoxian began to attack offline, and has covered more than 100000 terminal channels and 300 offline distributors.

In terms of price, Mo Xiaoxian locked in the price band of 10-20 yuan, and the sales volume of the company's products in this price band also accounted for 80%. In terms of category, Mo Xiaoxian still adopts the strategy of main products, the reason is that it is the most efficient to make main products, and the supply chain is also the simplest. It is understood that Mo Xiaoxian's market share in self heating hotpot has reached 8%.

From about 2017, self heating fast food began to break out. In 2019, China's self heating food market reached 3.5 billion yuan. Affected by the epidemic, this self heating pot may sell 4 billion yuan in 2020. Hot pot tycoons Hai Dilao, Dezhuang, da Longyao and XiaoLongkan have entered the market. There are also new online brands such as Zi Haiguo and Mo Xiaoxian. There are also traditional convenience food tycoons such as Tongyi and Master Kang.

Why is self heating hot pot so hot? For those who have a sudden desire to eat, they don't need to go to the hot pot shop to line up and wait for the pot. They can quickly eat at home and in the office. The experience can be described as quite friendly. Sour and spicy taste, stimulate dopamine secretion, make people full of happiness, spend less than 40 but harvest the illusion of eating hot pot.

Convenient instant food products meet the market demand of single, lonely, home economy and lazy economy under the pressure of fast-paced life. It is a consumption upgrading product of 3-5 yuan instant noodles in the original market. According to the data of the world instant noodle Association, in 2018, the sales volume of instant noodles in the world reached 103.6 billion copies, and the Chinese market accounted for 40.3 billion copies, accounting for 38.9% of the global sales volume of instant noodles, this shows that the market space of Chinese instant products is huge.