Jingdong And Pinduoduo: Can The Internal Shopping Group Win The Social E-Commerce War?

Similarly, relying on Tencent's strong social resources, pinduoduo and Jingdong have been competing secretly in recent years.

As the leader of social e-commerce in China, the attitude of the latecomers of pinduoduo is amazing. In May this year, pinduoduo's share price rose 11 times. On May 13, pinduoduo's share price rose 5.26% to 57.83 US dollars, and its market value reached 69.259 billion US dollars, surpassing Jingdong and setting a new high. At the end of May 17, pinduoduo rose 8.42%, with a market value of nearly $80 billion.

After it began to march into social e-commerce in a large scale last year, Jingdong's achievements are obvious to all. On May 15, JD released its first quarter financial report of this year, showing that net revenue increased by 20.7% year-on-year, while the number of active users was also quite impressive.

As of March 31, 2020, the number of active users of Jingdong in the past 12 months was 387.4 million, an increase of 24.8% compared with 3105 million in the same period of last year, and this growth rate increased again compared with the 18.6% of the previous quarter. Just half a year ago, the year-on-year growth rate of active users of Jingdong in the third quarter of 2019 was only 2.3%. In addition, JD added more than 25 million active users in the quarter, setting a new record for the company's user growth in the off-season.

Numbers are just external expressions. As a matter of fact, Jingxi was brewed out of Jingdong last year, which was derived from pinduoduo. At the same time, the tentacles and Inspiration of social e-commerce continue. A number of online shopping users recalled to the 21st century economic report that since last year, they have been drawn to all kinds of Jingdong internal shopping groups - although the experience for users is different, it has also become a bayonet in Jingdong's battle field of social e-commerce.

After it began to march into social e-commerce in a large scale last year, Jingdong's achievements are obvious to all. -Photo by Gan Jun

Shopping and fighting

Jingdong's strategic upgrading of social e-commerce has been on the horizon since the middle of last year.

In July 2019, the internal name of JD shopping business department was changed to social e-commerce business department. At the same time, jd.com announced the upgrade of investment promotion policy, which will fully open the category of investment promotion, and reduce the platform usage fee, so as to create a new social e-commerce platform in the future.

A new social e-commerce platform will soon be unveiled. In October of that year, Jingdong quietly renamed Jingxi the name of Jingxi. At the same time, it launched independent Jingxi app and small program. Consumers can directly enter Jingxi's interface through wechat shopping entrance.

There is no doubt that Jingdong online Jingxi directly points to social e-commerce, and the "ancestor" of this round of social e-commerce fever is pinduoduo.

"I have been using pinduoduo for several years since 2017," a pinduoduo user told the 21st century economic report. "Although some people around me are skeptical about pinduoduo, I think it just saves me money. For me, it's actually a good thing sharing attitude. In the past, it was recommended by word of mouth, but now it can save money through shopping. Why not

In fact, this mentality gave birth to the last opportunity of e-commerce at the end of the flow dividend. According to the data, by the end of 2018, the national online retail sales volume was about 9 trillion, with the year-on-year growth slowing down from 83.7% in 2012 to 25.5% in 2018. At the same time, according to the analysis of Everbright Securities Research Institute, the customer acquisition costs of Ali and Jingdong reached 306 yuan / person and 1503 yuan / person respectively in 2018, which is not the same as that of 70 yuan / person and 82 yuan / person in 2014.

Social e-commerce has become a new star of rapid growth. According to frost Sullivan data and forecast, the scale of social e-commerce in 2018 totaled 967.2 billion, with a year-on-year increase of 59%. From 2013 to 2017, the proportion of social e-commerce scale has increased from 2% to 7.8%.

In this field, pinduoduo is undoubtedly one of the best. The market value of Duoduo has exceeded 40 billion US dollars for the first time in April last year. In terms of Gmv, under the background of the so-called "demographic dividend disappearing" and consumption upgrading, pinduoduo's performance is also outstanding. In just two years, pinduoduo has broken through the 100 billion Gmv mark. Taobao took 5 years, meituan 6 years and Jingdong 10 years to achieve this figure.

Therefore, Jingxi, which is also holding the birth of the shopping mode, is undoubtedly benchmarking with pinduoduo. At that time, 21st century economic reporter downloaded Jingxi app and found that Jingxi's user interface was similar to pinduoduo, with the words "9.9", "clearance" and "recharge". Jingxizhong's way of purchasing goods is the same as pinduoduo's - low price of group.

But Jingxi has more excellent resources. Consumers can visit the wechat online shopping portal on October 31, 2019. In contrast, pinduoduo still exists in the "nine palace grid" of wechat, which is only a secondary entrance.

From the performance of last year's double 11, we can see the power of wechat in guiding Jingxi. On November 11, 2019, the number of goods sold by Jingxi platform in one hour peaked at 16 million, with an average daily increase of 365% compared with the week before switching. According to the introduction of jingdong-3, the users of Jingdong Xinxing line are from Jingdong Xinxing station, and the customers of jingdong-7 are from Jingdong Xinxing.

"Now Duoduo is like a hard business model." Li Chengdong, a former Tencent and Jingdong strategic investment analyst and founder of dolphin think tank, told the 21st century economic reporter.

Low profile internal shopping group

Last year, not only Jingxi was born, but also Jingdong shopping groups with different owners, large and small, emerged. However, different from Jingxi, Jingdong's internal shopping group appears to be low-key.

But it didn't stop the group from being hot. "If you want to buy anything, ask baozi Ma first. That's right." In a group called "baozima Haowu sharing group", when discussing the purchase of cherries, some users said in the group.

This group is extremely active in daily life, and there are often hundreds of chat records. Steamed stuffed bun mothers (not their real names) share a wide range of food, from fruit snacks to soup ingredients, to mother and baby products. There are not empty sharing links in the group. After the steamed stuffed bun mother sends out her selections, the group members often discuss the products.

The reason why the activity is high, on the one hand, is due to the high quality of the selected products in the group, on the other hand, the low price of shopping in the group. For example, the original price of a hand-held massage machine in Jingdong Mall was 289 yuan, but the price after collecting the ticket through the group link was only 149 yuan.

Talking about her own experience of creating Jingdong's shopping group, Baozi's mother suddenly opened her mouth. "At first, there was a neighbor in the circle of friends who was selling. I would habitually order it. Later, an enterprise executive friend sent me an invitation code. After accepting the invitation, I could become a super member of Fenxiang app. Not only can self purchase save money, sharing can also make money, I think it's a little interesting. "

The Fen Xiang she mentioned is not only the strategic partner of Jingdong, but also the figures of Liu qiangdong and Zhang Zetian. People close to Jingdong told the 21st century economic report that Jingdong did invest in Fenxiang.

After joining Fenxiang, Baozi's mother began to build a group, drawing relatives and friends into their own social sharing circle. As long as other people buy products under the name of baozima, they will get a certain amount of commission. It should be noted that there are four levels of Fenxiang, including partners, tutors, super members and registered members. The higher the level, the higher the corresponding Commission.

At the same time, the level is evaluated according to the points. As long as the amount of consumption under one's name and driving consumption reaches a certain standard, one can improve his own level. After a period of accumulation, at present, steamed stuffed bun mother has risen from super member to tutor level.

It is understood that, in addition to directly driving consumption and accumulating points, after becoming a high-level member, you can also make profits from the promotion income of the offline. If you become a tutor, you can theoretically always get income from "offline", that is, the so-called "lie earn".

This mode is similar to pinduoduo's shopping mode, but different from that of users who want to shop together to send out their relatives and friends, Fenxiang mode has further explored the power of wechat social networking, and is deeply bound with "pushers" in the form of membership system.

It's more like a cloud pattern. According to the cloud based prospectus, in 2018, each trading member can correspond to 3.8 platform buyers and contribute 66% of Gmv. The per capita Gmv of members is 2471 yuan, which is 5.5 times of that of non members, and has high platform viscosity.

"By maintaining the attractiveness of the platform to its members, it is enough to maintain the platform operation to a large extent, and realize the leverage effect of buyers and Gmv with the help of members." An industry observer commented, "compared with the traditional e-commerce model, this kind of platform is more in line with the positioning of" small and beautiful. "

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