Pinduoduo'S "Heavy Warehouse" Agricultural Revenue Will Nearly Double In 2020

On March 17, the fourth quarter of 2020 and the annual financial report released by pinduoduo showed that in the fourth quarter of 2020, pinduoduo achieved a revenue of 26.547 billion yuan, a year-on-year increase of 146%, and the annual revenue of 59.491.9 billion yuan, an increase of 97% over the previous year, nearly doubling the growth. At the same time, the Gmv of the platform in 2020 is 1667.6 billion yuan, which is 66% higher than that of 1006.6 billion yuan in 2019.

To the surprise of the outside world, in just six years, pinduoduo has made a "Blood Route". By the end of 2020, the number of active buyers of the platform reached 788.4 million, 35% higher than that of 585.2 million at the end of the previous year. In the same period, the number of active buyers of Alibaba was 779 million, and that of Jingdong was 472 million. Pinduoduo has become the largest e-commerce platform in China by the end of 2020.

While pinduoduo's fourth quarter results were still good, Huang Zheng announced his resignation. As Huang Zheng himself said, pinduoduo is still very young, and the industry competition is increasingly fierce. How will pinduoduo, who bid farewell to Huang Zheng, go down and go?

In this regard, pinduoduo's relevant executives said in the performance telephone conference that day, one of the factors behind the growth momentum of the financial report was the focus of pinduoduo's "agriculture" work, especially about buying more vegetables. "Buying more vegetables is a long-term business plan, which contains great opportunities.".

Top users

Even in the face of the impact of the epidemic, pinduoduo will add more than 200 million active buyers in 2020, of which 57.1 million will be added in the fourth quarter. In terms of monthly active users, in the fourth quarter of 2020, the average monthly active users of pinduoduo app reached 719.9 million, with a net increase of 76.5 million in a single quarter.

At the same time, pinduoduo's users are also more willing to "spend". According to the financial report, the annual average consumption of pinduoduo's active buyers will increase to 2115.2 yuan in 2020, 23% higher than that of the previous year, and nearly double that of 2018. According to the financial report, in the fourth quarter of 2020, pinduoduo achieved a revenue of 26.547 billion yuan, a year-on-year increase of 146%, and the annual revenue of 59.491.9 billion yuan, an increase of 97% over the same period of the previous year, nearly doubling the growth.

Since its establishment, pinduoduo has not been slack for a moment, and has been running wild all the way. It has grown rapidly in the indicators of various dimensions. Under this high-speed operation, pinduoduo has also formed a stable structure which is different from other Internet enterprises. The most prominent one is the stable staff management. Before that, little news about pinduoduo's resignation or layoff has been heard. According to Shenwang, most of pinduoduo's top management teams have been working with Huang Zheng since he left Google to create the e-commerce website ouku.

Both Huang Zheng, as the helmsman of pinduoduo, or the entire senior management team, basically hide themselves behind the scenes, keeping a low profile and rarely speaking out. Although Huang Zheng's brave retreat has aroused widespread concern, there are signs. In July last year, Huang Zheng announced that he would no longer be the CEO of the company, but would retain the position of chairman. Chen Lei, the former CTO (chief technical officer), would take over the post of CEO. He also took out about 10.11% of the company's total shares to set up charitable funds and motivate the company's future management.

This time, Huang Zheng went further and resigned as the chairman of pinduoduo and was replaced by the current CEO Chen Lei. Huang Zheng said in the shareholder letter that the reason for his resignation lies in the increasingly fierce and even alienated competition in the industry, which makes him aware of the inevitable problems in the traditional competition oriented by scale and efficiency. At the same time, because of the iteration of pinduoduo's internal business and management, Huang Zheng said, "pinduoduo should not have too much personal color", and it is time to gradually give in to younger generations and new managers.

Although under the current double growth of user size and average consumption amount, pinduoduo's revenue nearly doubled, resulting in a narrowed loss, and even close to break even in a single quarter. However, it is an indisputable fact that mobile Internet traffic has peaked, "the gradual slowdown of growth is inevitable." David Liu, vice president of strategy, explains, "now our biggest concern is our ranking in the minds of users."

Agriculture is the strategic focus

In this regard, in the conference call on the day of financial report release, pinduoduo CEO Chen Lei also gave the answer, "we never pay attention to the number of users, but the satisfaction and trust of users. We are committed to providing users with good shopping experience and high-value products."

"Providing good services to users ensures that we will continue to grow. We have always stressed that agriculture is our key area, and we will continue to make more efforts in this area." Chen Lei stressed that in his speech, he repeatedly mentioned agricultural related words, "we have never forgotten our original intention, and agriculture has always been our strategic focus. We are proud to be China's largest agricultural products uplink platform. "

This is also verified in the financial report data. Pinduoduo has also continued to plough into the "first kilometer" of agriculture. It has carried out in-depth cooperation with many top scientific research institutions, academicians and experts at home and abroad, and has continued to invest in scientific planting, agricultural Internet of things, unmanned greenhouse, and intelligent agriculture. According to the financial report, in 2020, pinduoduo invested 6.891.7 billion yuan in R & D, an increase of 78% over the previous year. Platform R & D accounted for 11.6% of revenue.

With the continuous investment in agricultural science and technology, agricultural products and agricultural by-products have become the fastest growing categories. In 2020, the turnover of pinduoduo's agricultural (sideline) products will be 270 billion yuan, doubling year-on-year, accounting for 16.2% of the annual turnover, far higher than the average proportion of the industry of about 3%. Up to now, more than 12 million agricultural producers have connected with consumers across the country through pinduoduo.

In the process of helping the poor and helping agriculture, pinduoduo combines the development status of China's agriculture, through big data, cloud computing and distributed artificial intelligence technology, it puts the scattered agricultural production capacity and the scattered demand for agricultural products in the "cloud" together. Based on the pioneering "cloud spelling of agricultural land" system, the agricultural products in poverty-stricken areas can break through the traditional circulation mode The restrictions are directly connected to the national market.

Coincidentally, Huang Zheng also talked about issues related to agricultural (Food Science) research in his internal letter. Speaking of his work after leaving office, he said that he would pay attention to the research in the field of food science and life science. "For example, through the control of the methods used in the planting process of agricultural products, is it possible for us to reliably and effectively control the contents of potentially harmful heavy metals in potatoes, sweet potatoes and tomatoes, and to control and standardize the possible and beneficial trace elements The promotion of modernization

Buying more vegetables is not a community group purchase

"Agriculture is one of the most populous industries." Chen Lei revealed that in the future, pinduoduo will further invest in the technology and business of various links in the agricultural value chain, accelerate the penetration of online retail of agricultural products, and create more value for farmers and consumers.

Since Chen Lei became CEO of pinduoduo last year, he has also further increased technology and strategic investment in the new e-commerce ecosystem, and launched a series of innovative businesses including "buy more vegetables".

"At present, Duoduo has been launched in 300 cities in China. The core idea is to reduce waste and then reduce costs, and rely on technology to achieve better quality control, better product selection, and more accurate demand forecasting. " David Liu said.

"Buying more vegetables is a very new business, and its business model is constantly evolving," he explained. But buying more vegetables is not a typical community group buying business. We believe that buying more vegetables is a part of our complete business sector, an extension of our customer experience optimization, and an extension of our better meeting user needs. "

It is worth noting that in the fourth quarter of 2020, pinduoduo has made a new round of heavy investment in warehousing, logistics and agricultural products, and its operation has basically reached a break even in this quarter. Under non general accounting standards, the platform's net loss in the fourth quarter of last year was 184.5 million yuan, compared with 815 million yuan in the same period of last year. The annual net loss was 2.965 billion yuan, up from 4.265.8 billion yuan in the same period of last year.

With the continuous development of logistics infrastructure in the future, farmers can get the support of efficient logistics network. Pinduoduo will not only become the largest distributor of agricultural products in China, but also aspire to become the largest grocer in the world in the future. " David Liu revealed.

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