In May 2020, the Circulation Industry Promotion Center of the Ministry of Commerce released the report "Digital Transformation in China's Industrial Belt-Efficient Synergy of Production, Circulation and Consumption". The report shows that the three-dimensional consumption upgrade requires the reconstruction of the industrial value chain, and technological progress helps to get rid of The “low-end lock-in” in the global value chain and the emerging circulation model have opened up the “blocking point” of switching between domestic and foreign markets. The industrial belt is undergoing a magnificent turnaround, digital upgrades, and efficient synergy between production, circulation and consumption. Among them, it is worth noting that the C2M intelligent business model with the Internet and data intelligence as the core has become the key for manufacturing enterprises to reshape their core competitiveness in the digital economy era. At the same time, with the advancement of Internet technology in industrial applications, industry belt companies have entered the Internet platform one after another, and the online industry belt ushered in "spring".
The e-commerce platform represented by Pinduoduo is using Internet technology to help traditional manufacturing companies carry out digital transformation, from production to sales, and promote the digital upgrade of the industrial belt.
On November 24, Pinduoduo released a new brand plan for the northern home textile industry belt in Shijiazhuang, Hebei. Chen Qiu, vice president of Pinduoduo, said that the platform will focus on helping Hebei home textile industry bring excellent manufacturing companies to incubate new brands, and drive supply-side reforms and achieve industrial upgrades through data-led, sales-based, and brand-led models.
Upgrading of industrial belts promotes new consumption
Compared with the well-known Nantong Dieshiqiao and Shaoxing Keqiao home textile industrial belts, the development level of Hebei’s home textile industry lags behind that of Jiangsu and Zhejiang, but benefits from labor, land, tax and other resource elements. Cost advantage, the price-performance ratio of Hebei home textile products is much higher than its counterparts in the south.
According to statistics from Hebei E-commerce Association, Hebei has 43 industrial clusters suitable for the development of e-commerce, including Gaoyang towels, Qinghe cashmere, Xinji leather, Xianghe furniture, etc. The common advantage is that the industry is rich in variety and cost-effective, but at the same time facing Overcapacity, meager profit in the industry and lack of brand are three major problems. With the support of Pinduoduo's new brand plan, Hebei's outstanding home textile manufacturing enterprises have expanded their production capacity and improved their manufacturing levels after receiving continuous growth in orders and stable cash flow.
After becoming the number one curtain category on the Pinduoduo platform in 2019, Yongsheng Plastics Co., Ltd. adopted machines on a large scale instead of manual cutting curtain processing. The two units were expanded to 14 units, and the output increased from 200 tons to 2,200 tons. Mu Jie’s Home has introduced top-level production lines from abroad and expanded production equipment from 40 units in 2018 to 360 units today.
companies that join the new brand plan have also improved product development efficiency and market response speed. Tao Zilong, the founder of Zhenjianliangpin, said that based on the consumption data provided by Pinduoduo, the company's new product development cycle has been shortened to 6 days, while for its southern counterparts, it will take 14 days at the earliest. Yongsheng Plastics has subdivided consumers' differentiated purchase needs into 462 standardized needs, and determined production schedules based on historical sales data, and realized 48-hour delivery of customized products.
"Hebei's home textile industry focuses on low- and medium-priced positioning. With the help of multiple channels, it has effectively met the consumer needs of people in low-tier cities. How to achieve leapfrog development in the next step and climb to the top of the industrial smile curve is the key", China Textile Business Liu Yanfei, vice chairman of the Association Home Textiles Committee, said. According to Pinduoduo,
plans to support the development of Hebei home textile industry clusters such as Gaoyang Towel, Shenze Fabric, and Langfang Door Curtain in the next five years, and cultivate a number of brands with annual sales of 1 billion.
This is also Pinduoduo entering the home textile industry again after the beauty and furniture industries. In 2018, Pinduoduo launched the “New Brand Plan” to use the company’s unique data advantages to support outstanding domestic manufacturers and help them build explosive products and achieve better development on the Pinduoduo platform. One year later, Pinduoduo upgraded its new brand plan from "single factory support" to "industrial belt activation", expanding the empowerment of precisely matched C2M solutions to multiple industries in a region. Prior to this, Pinduoduo has cooperated with the clothing industry belt in Humen, Guangdong, the Hebei home textile industry belt, and the Ningbo foreign trade industry belt to use demand-side data to promote the supply-side reform of small and medium-sized companies in the industrial belt and accelerate the digitalization of the industry.
Export to domestic sales Open up online sales channels
Under the background of this year’s epidemic, Chinese traditional foreign trade companies have begun to try to move to the domestic market through e-commerce platforms, hoping to find them in the domestic market with huge potentialNew development path. According to statistics released by the Ministry of Commerce in May, more than 100,000 foreign trade companies are working hard to convert their exports to domestic sales. The
epidemic has accelerated the "turning to domestic sales" actions of foreign trade companies, and the "dual cycle" pattern has further accelerated this process. At the same time, as a platform, e-commerce companies have also set up special sections for export products. More and more high-quality export products are effectively enriching the domestic market supply and further stimulating the vitality and effective demand of the domestic market.
Zhejiang Sanhe Cookware has been engaged in foreign trade business for 15 years, with an annual output of over 25 million pots and has a very high market share in Europe and the United States. Due to long-term OEM and self-exporting, Sanhe's domestic reputation is not high. With technology and strength, even if they rack their brains, they cannot break the circle in the domestic market. In the dilemma of
, Sanhe joined Pinduoduo's "New Brand Plan" in 2019. Under Pinduoduo's suggestion, Sanhe Cookware has customized a cookware with a quality benchmarking first-line brand and a more affordable price. The quality of the export products is compliant with the standard, and the price is only 99 yuan, which is generally recognized by consumers.
Sanhe cookware has thus achieved a gorgeous turn from export to domestic sales. In Pinduoduo, Sanhe Cookware is just a microcosm. This year, Pinduoduo launched a series of measures such as helping foreign trade enterprises to switch their exports to domestic sales, and started deepening cooperation with more than 20 industrial belts in Guangdong, Jiangsu, Zhejiang, Fujian and other countries.
In fact, Internet companies are gradually becoming the leaders in the integration of the traditional manufacturing industry with the supply chain. On the one hand, they rely on their own advantages in technological innovation and model promotion to promote efficient collaboration between the subjects of various links, and on the other hand, they use long-term The industry influence and market credibility formed by operation actively help upstream and downstream enterprises to connect with each other. This can not only greatly shorten the response time, but also increase the supply scale while ensuring or even improving product quality, thereby improving the overall capacity of the supply chain.
At the 2020 China E-commerce Conference, Pan Zhijian, deputy general manager of the Transaction Banking Department of Bank of China, said that e-commerce is a "double cycle" lubricant and accelerator. He believes that the rapid development of e-commerce has profoundly changed the form of domestic trade circulation and foreign trade operations. Through the acceleration and expansion of information flow, the flow of goods and capital has been accelerated, and the cycle of economic production, circulation, and consumption has been lubricated. All links.
According to the third quarter 2020 financial report released by Pinduoduo, active buyers increased by 36% year-on-year to 731.3 million, an increase of 48.1 million in the third quarter alone: at the same time, monthly active users also reached 643.4 million, an increase of 74.6 million in a single quarter. "With the strong growth of the user scale, the new consumer format centered on purchases is being transmitted from the Chinese consumer market to the supply side, promoting the transformation of traditional models such as agricultural product distribution and brand building, making affordable and high-quality goods a domestic consumer. Mainstream." Chen Lei, CEO of Pinduoduo, said, "Pinduoduo will increase its investment on the user side and provide more users with a'more affordable and more fun' consumer experience."
