With the listing of Pinduoduo, throughout June, the biggest news from major domestic media basically revolved around Pinduoduo.

For a time, Pinduoduo became the biggest hot spot nowadays.

Because the existence of Pinduoduo itself is a miracle. In just one month since its listing, Pinduoduo’s market value has exceeded 250 billion Hong Kong dollars. When converted into Chinese currency, it is almost 230 billion, and when converted into rice dollars, it is almost 300.

billion yuan.

Such a large Internet company with a market value of 30 billion yuan has been established for less than two years.

What's even more impressive is that Pinduoduo's share price is not only driven by the stock market. In terms of number of users and transaction volume, Pinduoduo is basically the same as JD.com, which has been in business for more than ten years, and is second only to Taobao, the e-commerce overlord.

Just pick out any of these data and it will be enough to attract your attention.

Even recently, many experts have come to analyze Pinduoduo’s success story, and some people have made courses and sold them online. One course can cost several hundred dollars.

And these so-called experts like to compare Pinduoduo and Taobao the most.

As the strongest e-commerce giant in the country, Alibaba’s status has been unshakable for so many years. However, from the perspective of the market, Alibaba has reached its limit. Subsequent improvements will only increase the number of Internet users, and Pinduoduo still has a lot of future ahead.

A long way to go.

In addition to Pinduoduo, there is another e-commerce platform that is also rising rapidly recently, and that is Amazon.

It’s actually inappropriate to say that Amazon is rising. They just made some changes and no longer stick to the same rules as in the past.

After these changes began, Amazon relied on its accumulation of more than ten years to expand rapidly, and its market value repeatedly broke new highs.

Its founder even ranked fifth on the global rich list.

The brilliant achievements of Amazon and Pinduoduo have made the e-commerce industry the favorite of international financial capital, and their stocks have also risen accordingly.

Luo Fan doesn't care about all this. Rather than these fictitious things, Luo Fan wants to think carefully about how Pinduoduo will develop next after it obtains new funds.

Now that Pinduoduo has been successfully listed, Pinduoduo still has at least 30 billion yuan in its company account. It is naturally impossible for such a large sum of money to be placed in the account to earn interest, and it will definitely be spent.

However, how to spend it, where to spend it, whether to use it for advertising, subsidies, or specifically to support a certain industry, are all prudent decisions.

Of course, these matters cannot be decided by Luo Fan himself. Pinduoduo’s matters must be discussed by the four bosses. After they have discussed it, they will hand over the relevant strategies to Pinduoduo’s management, and the management will

A series of plans will be developed based on these strategies.

In fact, it’s not just Pinduoduo, this is also the current style of Xingyuan.

If placed within Xingyuan, it is Luo Fan, the boss, who decides the strategic direction, and then other management members designate the route.

Luo Fan has not made any mistakes in his decisions so far, so the entire Xingyuan senior management now unconditionally implements Mr. Luo's decisions.

However, as Xingyuan's business scope becomes wider and wider, Luo Fan rarely participates in detailed planning anymore.

Most matters are handled by the heads of various departments of Xingyuan themselves.

Luo Fan has not been involved in relatively stable departments such as Daily Toutiao, the game department, and the art department for half a year.

Departments and branches that have made big moves recently, such as Douyin, Pinduoduo, and Chip Alliance, are Luo Fan's focus.

That afternoon, Luo Fan had a conference call with four bosses.

Apparently the other three bosses are also considering Pinduoduo’s subsequent development.

"Three of you, I think you are a little carried away by the amount of money in your account. There are indeed tens of billions in Pinduoduo's account, but this money is far behind compared to Taobao!"

“It’s naturally far behind Taobao, but Pinduoduo is now quite big, right?

Besides, Alibaba is one of the four giants of the Internet, and their core business is Taobao. Pinduoduo is neither Xingyuan’s core business nor our Baidu’s core business. Such a direct comparison is unfair,” said Mr. Li.

said.

"Mr. Li is right, but I understand Mr. Luo's thinking. Although Pinduoduo's listing is very successful, the pressure actually starts from today.

After listing, it is unlikely that we will take money from various companies to finance Pinduoduo again, and various operations must be more formalized, which will be new challenges for Pinduoduo," said Mr. Lei.

As Mr. Lei said, it is already difficult to raise funds after listing. The only option is to increase shares from the stock market. However, this behavior will be monitored by the China Securities Regulatory Commission. Pinduoduo is no longer short of money before it is listed. Four

The money can be added as soon as we discuss it.

But even so, listing is still necessary. The first purpose is not to raise funds, but to increase publicity. In recent years.

With the sponsorship of the Spring Festival Gala, Pinduoduo’s expansion has not reached its limit, but if it wants to go further, it must rely on greater traffic.

Listing is a very good opportunity. The hype and sensation during the listing, every move after the listing, and the release of the annual report will all be hot news.

“Mr. Lei’s words express my concerns. In my opinion, there are currently two plans for Pinduoduo’s subsequent development. One is to continue to attract large-scale traffic, add new users, and cultivate user habits. However, doing so will cause our funds to plummet.

Consumption.

The second plan is to gradually launch a profit plan. With our current size, it is not difficult to make a profit. However, if we do this, the user growth rate will inevitably decline. However, many major shareholders have suggested that we do this.

Which one do you think is more suitable?" Luo Fan asked.

"Of course it's the second one. Those shareholders are short-sighted and can't listen to their ideas." Brother Dong said.

"No, Lao Liu, you are wrong. Those shareholders are not short-sighted. On the contrary, I think they are very smart." Mr. Lei said.

This chapter is not over yet, please click on the next page to continue reading! "Yes, Lao Liu, if you think about it carefully, these people are all elites in the financial and Internet fields. How could they not know that only long-term investment can lead to higher income in the future?

They urge us like this because they have already made huge profits and are not willing to wait with us any longer," said Mr. Li.

"I agree with Mr. Lei and Mr. Li, so we don't need to pay attention to them. The voting rights are all in my hands," Luo Fan said.

In Luo Fan's view, many Internet startups have finally gone public with the help of venture capital.

Before going public, they had unlimited potential and great possibilities. Shareholders were also very concerned about the company's development. Everything was focused on the company's future and they didn't care whether they could make a profit or not.

But after the listing, the shareholders seemed to have changed. Previously, they encouraged Internet companies to seize the market without making profits. But after the listing, they hope that the company can make profits immediately, even at the expense of the future.

Are these shareholders getting carried away by money? Or have their original intentions changed?

In fact, it is not the case. It is these venture capital companies that need to take advantage of the opportunity of listing to cash out.

Because throughout the history of the Internet, except for a few top companies, other Internet companies' stocks did not rise very much in the n years after they were listed.

For example, Meituan in Luo Fan's previous life was listed in Hong Kong City in 2018. By 2022, the stock price has increased by about three times. This kind of income is very good.

But this is Meituan! If it weren’t for the rise of Toutiao in the previous life, Meituan would be the next Internet giant.

Meituan has tripled in 4 years, but if it were another company, it might not even double in 4 years.

At this time, shareholders will naturally try their best to increase the value of the company's shares faster, and the best way to increase the value is to make the financial report look good.

How can the financial reports become good-looking? Of course, it is to make these newly listed Internet companies start making profits immediately.

Once Internet companies listen to them and start making profits at all costs, they will immediately push behind them. When the time comes for the realization period and the stock price is the highest, they can take the opportunity to cash out and make profits on a large scale.

These are the most slippery and familiar tricks played by big capital.

Naturally, the four bosses know these things very well, and they will definitely not let Pinduoduo embark on such a path.

"Now that we have decided to take the path of steady development, what should we do next?" Mr. Lei asked.

"I don't know much about e-commerce, so I'd better listen to Mr. Luo and Mr. Liu!" said Mr. Li.

"Then let me tell you my opinion first!" Brother Dong said: "I plan to start from two directions: the first is agriculture, and the second is the clothing industry. To put it simply, we start with food and clothing.

These four things, food, clothing, housing and transportation, are necessary needs for everyone. As an e-commerce platform, we cannot provide housing and transportation, but we must not let go of food, clothing, and housing.

The clothing category is very simple. We directly communicate with clothing factories and shoe factories as we do now, and let them use the Duoduo platform at the best price. We will provide additional traffic and strive to achieve a win-win situation for the three parties.

As for food, whether it is staple food, fruit, meat or snacks and drinks, Pinduoduo can use Xingyuan's best big data algorithms and traffic promotion to form the lowest-cost group buying model."

After listening to what Brother Dong said, Mr. Lei and Mr. Li both agreed.

Luo Fan thought for a while and said: "Mr. Liu's idea is fine. I think it's okay to do it this way. Xingyuan can also provide it in terms of algorithms, but I think the traffic needs to be changed.

Xingyuan will gradually reduce Pinduoduo’s advertising on Xingchat, Daily Toutiao and other apps, and begin to move Pinduoduo’s advertising to Douyin on a large scale.”

"Moved to Douyin? Why is that?" Brother Dong asked confused.

"Because I want to promote a new business model." Luo Fan replied.

"What business model?" asked Mr. Li.

“This business model has actually been tried before on Pinduoduo,” Luo Fan replied.

"Mr. Luo, you're not talking about live streaming, are you?" Brother Dong was the first to react and asked.

“That’s right, it’s live streaming.”

What Luo Fan is talking about here is undoubtedly the live streaming shopping he learned from Douyin in his previous life. This is a completely different model from the other three.

In the previous life, Douyin mainly aroused users' desire to buy and then made purchases, while the other three companies only made choices when users had needs.

Theoretically, the latter's market is definitely much larger than the former, but Byte has no choice. The e-commerce market has been divided by the three giants, so it can only take the wrong approach.

But now, Douyin and Pinduoduo are considered a family, and they can perfectly complement each other.

In previous lives, live streaming often had serious shortcomings in logistics, after-sales service, returns, and quality.

With Pinduoduo’s resources, these problems will be much less.

"But Pinduoduo has so many products and it's definitely not enough to just rely on live streaming to bring traffic." Brother Dong said quickly,

“Of course it’s not just about live streaming. Douyin is a short video platform. Merchants on Pinduoduo can send video advertisements to Douyin, and there will be corresponding purchase links on it.

After merchants upload these videos to Douyin, Douyin will allocate them based on random traffic. If the effect is good, the traffic will be increased."
To be continued...