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With An Income of 40 Billion Every Month And 3 Billion in Financing, The “$0 to buy” of Pin Duoduo Is Levering The E-commerce Pattern!

“$0 to buy” can not only earn money, but also earn 40 billion a month!
Not the world is crazy, but that we know too little about the ways of making money.

Pin Duoduo becomes more crazy even if it bears more curses!
It takes the third place of e-commerce using only two years and three months, and it recently received 3 billion in financing from Tencent. With the fantastic plot of the story, Pin Duoduo goes all the way that Taobao Jingdong has managed to run for more than 10 years.
Of course, on the way to the e-commerce, Pin Duoduo broadcasts the advertisements in a continuous loop and at the same time bears the deafening curses. Even some programs that are title sponsored by Pin Duoduo have bashfully hidden their slogans during the replay.

But Pin Duoduo has a strong heart.
It was set up in October, 2015, and in 2016, Tencent led the investment. It has more than 300 million paying users in short 2 years, and the turnover rose from 36 billion to 120 billion from 2016 to 2017.
While Pin Duoduo has no bottom line in the rising.
In January, 2018, the GMV of Pin Duoduo has reached 40 billion (At the beginning of 2017 there are only 3 billion.), at this speed, Pin Duoduo may achieve 500 billion for the whole year!

What’s the meaning of 500 billion? That’s a quarter of Tmall’s GMV in 2017 (2100 billion), ans almost half of JingDong’s GMV in 2017 (1300 billion).
JingDong used 6 years to achieve 10 billion GMV, while Pin Duoduo achieved it easily.

How does “$0 to buy” earn money?
When Pin Duoduo went into the e-commerce, then pushed the “$0 to buy” crowdbuying model, which was very low in the eyes of others.
Or may be you are still questioning it: Can “$0 to buy” really earn money?
Now I can tell you “ Yes, it can. And it can earn a lot of money!”
The basis of “$0 to buy”: You can really get it in $0 and free shipping, but the process is tough.
For example, you share a link in your circle ask your friend to bargain for you, at first every one can reduce more than ten dollars, and you feel very good, but as you get closer to your goal, it can only be reduced only a few cents.

But, however tough the process is, Pin Duoduo send out the goods for free. Apparently, it is a lost business–but Pin Duoduo don’t see it that way.
The nature of Pin Duoduo is to attract the user’s attraction and to monetize its traffic in the future.
Just like the “collection of Wu Fu” game we have played in the Spring Festival, we collected them excitingly even though we know we can only get several dollars.

Let’s take a look at the operation of the group purchase with $0.
For a product that is worth $500, you theoretically need 1000 persons to help you to bargain; for a product that is worth $200, you theoretically need 300 persons to help you to bargain; that is the wider you network, the bigger you have chance to get the product.
But, do you know the real price of the product for “$0 to buy”?
For example, a nail with a price tag of 70 yuan on Pin Duoduo may has a much lower price on Taobao.
If the crowdbuying is successful, they can get hundreds of users in the cost of only $10. The can also get dozens of users even the crowdbuying is fail.
The logic of Pin Duoduo’s “$0 to buy” is so easy: use small cost to exchange big traffic.
What’s the success of Pin Duoduo?
We can conclude Pin Duoduo’s success as follows:
First, the development of potential WeChat customers has been extremely successful.
The potential WeChat customers includes the third and fourth line consumer market and the group previously insulated from the e-commerce. For example, the arise of Pin Duoduo makes the grandma grandpa love shopping on line.

Second, the biggest innovation of Pin Duoduo in the business model is to monetize traffic through social networks.
In the past, social e-commerce companies pursued KOL, which solved the problem of information asymmetry, but did not solve the traffic problem. It is the core value of Pin Duoduo’s group purchase to achieve the fission and realization of traffic through social network.
Third, the magic of marketing.
We have to say that Pin Duoduo is too magical!
From the old to the young, almost every one can sing the slogan of Pin Duoduo, so we can see how successful Pin Duoduo is!

In a word, Pin Duoduo adapts to the trend of the development of the social e-commerce, on strategy, it is more tasteful than WeChat business; on marketing, it is all-pervasive. There is logic to the outbreak of Pin Duoduo.
Pin Duoduo, you has attracted the big boss’s attention!
So far, Pin Duoduo has attracted the attention of Ali and JD.
As the big boss of e-commerce, Ali does not allow little brother to play on his turf: recently, Taobao special edition APP is launched, as a response to Pin Duoduo.

At the same time, in March, 2018, JD launched JD crowdbuying, a low price crowdbuying platform, and used 1% commission to attract suppliers.
Comparatively speaking, Pin Duoduo is not a threat to Ali, but may be a threat to JD.
JD’s full-year results, released in early march, showed net revenue up 40.3% year on year for the entire 2017 fiscal year.
But in this season’s results, jd.com has yet to list GMV growth, and on the day of the results, jd.com fell 7 percent, closing down 5.22 percent and wiping out about 21.8 billion yuan in market value.
Compare with Pin Duoduo’s user growth speed, by the end of 2017, the number of active users on JD was 292.5 million, up 29.1% year on year, far lower than the 46% increase in the same period last year–by analogy, the year-on-year slowdown was 16.9%.
The confrontation with Tmall was already exhausting, the arise of Pin Duoduo really unexpected for JD.

Of course, it is hard to say how long will Pin Duoduo still be popular.
The biggest problem is that it is difficult to get full control of the quality of Pin Duoduo.
According to the data, the number of complaints from consumers to Pin Duoduo has reached a staggering 13%, which is even higher than 8.6%–the peak of Taobao. Maybe, don’t need someone else to do it, Pin Duoduo is going to collapse from the inside.
As Pin Duoduo said “We are comprehensively overhauling and standardizing the platform to enhance the quality supervision of our products. It’s up to the consumers to decide how much Pin Duoduo can do in the end.”

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