Pinduoduo cross-border platform will be launched on September 1st
As the launch date approaches, Pinduoduo cross-border e-commerce platform has unveiled its mystery step by step.
A few days ago, some media reported that Pinduoduo was secretly preparing a new overseas project.
Since this month, news about this new project has been gradually released, including recruiting people, attracting investment, applying for portals and settling in, etc., whetting the appetite of cross-border sellers.
While Pinduoduo is intensively preparing for the official launch of the project, Pinduoduo’s stock price has continued to rise recently. At the close of trading on August 25, Pinduoduo rose by more than 12%.
Industry insiders said that the capital market has confidence in Pinduoduo’s overseas expansion.
Now, Pinduoduo’s cross-border e-commerce platform is finally going online. According to Hugo.com, some sellers who have passed the platform review said that the Pinduoduo cross-border platform is expected to be officially launched on September 1.
(Source: Hugo.com)
Under the growth dilemma, going overseas has become the only way for Pinduoduo.
data shows that as of December 2021, the number of online shopping users in my country reached 842 million, an increase of 59.68 million compared with the same period last year.
According to Pinduoduo’s 2021 financial report, Pinduoduo’s annual active buyers are 869 million. On the premise of ignoring a small number of overseas users, the number of domestic users of Pinduoduo has almost reached its peak.
(Source: Guosen Securities Economic Research Institute)
The number of online shopping users in my country accounts for 81.6% of the total Internet users, and the penetration rate of e-commerce and is also at the world's leading level. The traffic dividend disappears and enters the existing market, and e-commerce competition further intensifies.
For example, ’s aggressive Douyin e-commerce has a high degree of overlap with Pinduoduo’s user portraits, and has directly entered Pinduoduo’s home base in the sinking market.
A report shows that nearly 70% of the products sold by Douyin e-commerce are priced below 50 yuan.
In the mid-to-high-end market where Pinduoduo is developing, users still cannot get rid of their dependence on tens of billions of subsidies. Under the influence of multiple factors, Pinduoduo must take precautions.
On the other hand, Pinduoduo has achieved four consecutive quarters of profitability. Although it inevitably spends on the agricultural sector, it can allocate part of its energy to conquer overseas markets.
Under the premise that cross-border e-commerce has become a general trend, the industry is in a state of blooming, with multiple models coexisting and various players competing.
Compared with other e-commerce giants, Pinduoduo is late to the game, but there are still opportunities to follow.
It is reported that Pinduoduo adopts the "0 yuan settlement, 0 commission" cooperation model as before, and has attracted a large number of individual industrial and commercial households to apply for settlement.
In addition, Pinduoduo has also invited suppliers from Shenzhen Dashi and SHEIN.
The name of Pinduoduo’s cross-border e-commerce platform is Temu, and the overall interface of the seller’s backend is relatively simple. The
backend operation interface includes product management and settlement management. The merchant is responsible for supplying , and the platform is responsible for other matters.
This model is very similar to the cross-border fast fashion giant SHEIN.
Generally speaking, the platform’s early investment and support policies for merchants are the most generous. Now, Pinduoduo has set its first stop overseas in the United States.
Targeting the US market, the platform separately launches pre-sales promotion ads, requiring merchants participating in the traffic grab to put their products on shelves as soon as possible.
For hundreds of millions of cross-border merchants, Pinduoduo is a brand new channel, full of opportunities and challenges.
Pinduoduo goes overseas and dares to be the queen of the world
Pinduoduo has been following in the footsteps of its predecessors since its birth. Becoming an e-commerce dark horse, Duoduomaicai learning is the preferred choice for , WeChat mini program learning group solitaire, etc., without exception.
When cross-border overseas expansion was no longer a new story, Pinduoduo took action again.
Huang Zheng's idea of "dare to be the queen of the world" comes largely from the business godfather Duan Yongping, that is, do the right thing, do things right, and develop your own characteristics on a mature path.
In fact, Huang Zheng had a little-known cross-border e-commerce entrepreneurial experience.
After the sale of Ouku.com , Huang Zheng once again founded an e-commerce agency operation website Leqi.com, and hatched a cross-border e-commerce project based on Leqi.com. The
project became an independent company called Suzhou Lebei Technology Co., Ltd., which was managed by Huang Zheng personally. Later, it gradually faded out due to physical reasons.
Like SHEIN, Lebei’s wedding dress brand has also captured the traffic dividends of early Internet celebrities and social media in the European and American markets.
However, Lebei was not as decisive as SHEIN and missed a great opportunity to develop the supply chain.
Later, Lebei established a new company, Mocan. Mocan once launched the cross-border e-commerce project VOVA, which is considered to be inextricably linked to Pinduoduo, known as "European Pinduoduo".
Last year, the VOVA server ceased operations.
Therefore, Pinduoduo is not completely unfamiliar with overseas markets. At least Huang Zheng has the overseas gene in his bones.
Last year, Pinduoduo’s new CEO Chen Lei proposed the agricultural overseas strategy for the first time.
In January this year, Pinduoduo began to prepare for overseas projects. As of today, the project is about to be officially launched. Going overseas is a new test for Pinduoduo’s product positioning, logistics supply chain and other construction.
Judging from the information disclosed so far, Pinduoduo’s cross-border projects are more targeted at SHEIN.
Although there are many learners of SHEIN, and most of them end in failure, the one who learned SHEIN this time was Pinduoduo, an e-commerce giant with outstanding learning ability.
At present, what Pinduoduo wants to do is to be a comprehensive cross-border e-commerce platform. The categories include clothing and shoes, luggage accessories, jewelry, maternal and infant products, children's clothing toys, sports and outdoor, 3C digital, small home appliances, and mobile phones. There are 21 first-level categories such as products and accessories, and one store can sell multiple categories.
Therefore, Pinduoduo’s ambitions are obviously much greater than those of SHEIN, which places higher demands on Pinduoduo.
In terms of logistics, Pinduoduo has contacted many express delivery companies. The most likely one reported online is Jitu Express , which is closely related to Pinduoduo.
(Recently, Jitu and HNA Cargo established a cooperation)
Compared with other aspects, what everyone is more worried about is Pinduoduo’s product positioning. In response to the high quality requirements of the American market, Pinduoduo strictly controls product quality.
It is reported that if there is a problem with the quality of the product, Pinduoduo will impose a fine of five times on the merchant. At present, more specific punishment measures have not been clearly defined.
From the development models of “US version of Pinduoduo” and SHEIN, we can see that there is a large market for low-price products in the United States.
But how to bypass the mature e-commerce system in the United States and gain a firm foothold requires Pinduoduo to give the answer.
Cross-border e-commerce giants, who can stand out
Today, slowing growth is the dilemma of the times. Before Pinduoduo, Alibaba , JD.com , etc. had been deployed overseas for many years.
Alibaba is the first domestic e-commerce giant to go overseas.
Alibaba started from Alibaba International Station , and currently has two main businesses, Alibaba International Station and AliExpress, as well as Lazada, Daraz, Trendyol and other overseas products.
(Source: Yibang Power)
JD.com’s overseas expansion can be traced back to 2014, and it has now been 8 years. After several swings and setbacks, JD.com gradually focused on building a global supply chain when going overseas.
(Source: Yibang Power)
What the domestic giants have in common when going overseas is that they all chose the Southeast Asian market as their first stop. Pinduoduo has chosen the North American market, which naturally has Pinduoduo’s considerations.
U.S. Department of Commerce data shows that as of May 2022, U.S. e-commerce sales in the past 12 months have reached US$975 billion, almost doubling compared to three years ago.
Learning from the experience of SHEIN’s rise, Pinduoduo can better leverage the advantages of its model in the same market environment.
But going overseas has never been a simple matter, and the way for giants to go overseas has always been full of twists and turns.
Pinduoduo needs to reduce operating and operating costs while facing the pressure of retail giants such as Amazon . More importantly, make plans related to market supervision in advance.
At the same time, Pinduoduo’s advantages are also obvious, namely its strong e-commerce genes and domestic successful experience.
Therefore, we remain optimistic and cautious about Pinduoduo’s overseas expansion this time. believes that one day, in overseas markets, the giants will reunite and once again stage a wonderful "Three Kingdoms".
author | Yueya
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