Review of Pinduoduo’s gameplay in 2019: branding and hit products!

Today I will mainly share with you some trial and error experiences in operating Pinduoduo.

1. Master Pinduoduo’s “Four Swords”

1. Spell "factory"

1) Scale effect

The factory's complete system can ensure the scale of product output. The scale of the factory can help enterprises gain the advantage of commodity costs and win, which is also the essential difference between factories and traditional small workshops.

2) Carrying capacity of massive orders

Strong delivery capabilities must be matched with strong productivity, and there must also be the ability to digest massive daily sales.

3) Ensure product output without price squeeze

How to break out of the price wall? Grasp the price advantage, ensure the real first-hand supply through the factory model, and become an upstream player in price.

2. Strive for the “industrial chain”

1) Long-term stability

The advantage of a proprietary industrial chain lies in its long-term stability. It can control every link from production to consumption and trace the entire process without affecting the entire chain due to the derailment of a certain link.

2) Stronger communication and collaboration, shorter response time, and improved efficiency

The formation of an industrial chain is accompanied by the formation of effective organization in the upstream, midstream and downstream, clear division of labor and cooperation, improved communication efficiency and reduced communication costs.

3) Maximizing the advantages of supporting the factory model

The more obvious the advantages of the factory model are, the more important the underlying "industrial chain" is, and the two complement each other. The industrial chain supports the maximum release of the efficiency of the factory model, and the factory model is the ultimate destination of the industrial chain.

3. Compete on “price”

No matter competing for factories or competing for industrial chains, it all comes down to price. Reducing the middle links, lowering costs, getting first-hand prices, and overtaking others through price.

Low prices are not completely useful, but they are also very effective. Price is the first influencing factor among the decisive purchasing factors of goods, and it is also the leading force and driving force for the entire product in the industry.

4. Teamwork

Work ability is the basic foundation, and character is crucial. Our team will use character as the first core consideration criterion, which is the primary reason for determining whether one can shine in the job for a long time. It is difficult to accomplish big things by one's own efforts. In the end, it still requires people and the unity of the team.

2. Grasp the “big platform” (Pinduoduo platform)

1) Pay more attention to branding and gradually upgrade and iterate quality

The direction of the Pinduoduo platform is already very clear, with brand pavilions, brand sales, brand tone points, hundreds of billions in subsidies... a series of measures aimed at only one direction: "quality", to upgrade brand quality.

2) Practice your rank well and set stricter rank requirements

The entry threshold for activities is getting higher and higher, and only high-level stores can enter the pool and increase traffic. Therefore, the prerequisite for becoming bigger and stronger is to grasp the general trend of the platform, follow the changes in the platform trend, and never act blindly without looking at the road ahead.

3) Scenario-based games are becoming more and more sticky and in-depth

When the number of users reaches a certain level, more consideration will be given to user stickiness. Pinduoduo not only strengthens pure shopping, but also increases user engagement through scenario-based games, linking user participation in completing tasks with shopping, and maintaining user activity and stickiness. For example: Duoduo Orchard, Duoduo Farm, Duoduo Mining, Rich Supermarket and other scenario games.

4) Support large-value coupon products, which have good performance and are deeply rooted in people’s hearts

The large-value coupons at the coupon center is one of the most successful classic activity cases of the platform in 2019. It received very good response and data as soon as it went online, which made the platform strongly recommend this entrance.

5) Traffic

A trend: Pinduoduo's traffic is broken up and only shown to you people with labels. The principle of traffic allocation for most activity resources is personalized recommendation, with different displays for different people, including homepage recommendations, tweets, flash sales, 9.9 yuan, etc. Compared with search traffic, scene traffic is more valuable and has better output effects.

6) 2020 Direction:

Here I would like to share with you a set of core keywords: crowd upgrade/product advantages/ability to pay/customer base with a fixed fan base or high repurchase rate of old customers/style and strength to attract fans/fan economy/high fan stickiness and loyalty/platform gives more recommendations/the rise of medium and high customer unit prices/Pinduoduo loses money in its 10 billion subsidy plan/platform population is divided into different levels/medium and high customer unit price groups are a hot spot.

3. Focus on "small stores" (Pinduoduo stores)

After talking about the general aspects of the platform, let’s focus on the small aspect of “store” and share some of our conclusions from the actual operation process. In simple terms, it is about how to quickly launch a product with a high probability in a short period of time.

1. Suitable products

First, when selecting products, there are roughly two directions: unpopular potential products and hot-selling products.

Secondly , the price advantage is: first, the first-hand price of factory goods; second, the differentiated features, which are the core competitive selling points that distinguish us from others.

2. Rapidly explode and seize the market

The first and foremost premise is to maintain price or feature differentiation advantages.

The second point is reasonable proportion. Most categories of Pinduoduo can have multiple SKU combinations, with reasonable matching and planning. (Traffic SKU + benefit point SKU + mass consumption regular SKU + profit SKU + high profit image SKU.)

The third point is to grasp the rhythm and control each node in place: "growth line → traffic boost → system capture → resource position".

Fourthly, when the store’s daily sales and GMV reach a certain level, it will connect with the corresponding storekeeper resources in the category. The storekeeper will assist in operations, and the resources will drive the store to another level of scale.

3. Store cluster expansion

When a product shows the potential to become a hit during the testing phase, immediately expanding the store cluster is a good way to maintain the long-term stability of the product.

4. It all comes down to “details”

– Market research and analysis before product selection consumes 60% of your time. Invest more energy and conduct a thorough analysis.

– The marketing interest point must be clear. This point must be attractive enough to be popular. To put it bluntly, it must be tempting. To put it professionally, it must be the click-through rate and conversion.

– The SKU setting should be carefully considered, including traffic SKU + interest point SKU + mass consumption regular SKU + profit SKU + high-profit image SKU.

– Accurately refine the core selling points, carry out differentiated marketing, and stand out.

4. Summary

– Understand the direction and trend of the platform, embrace changes, respond in a timely manner, and don’t just work blindly.

– Everyone will encounter bottlenecks. When you encounter a bottleneck, restructure the gameplay, develop new products, and do your best to break through.

- Plan the new product route quickly, optimize the test quickly, and grasp the balance point of cost, price and profit. Changing the price will hurt your body and kidneys.

Author: Qun Xiang

Source public account: Qunxiang Club (ID: Qunxiangle )