Pinduoduo’s 10 billion subsidies are coming in full force, and the subsidy intensity is extraordinary.

In just a few days, the transaction volume of Taobao and JD.com has been greatly affected.

JD.com has Dongge to appease shareholders, and at the same time, Pinduoduo’s 10 billion subsidy is not targeted by JD.com, and Taobao’s mid-to-high-end market.

As for JD’s high-end market, Dong Ge himself is the major shareholder of Pinduoduo. Will he do the work of demolishing the east wall and repairing the west wall?

Now, the initial subsidy of 10 billion yuan will definitely be affected, but the impact will be limited after all. After all, Pinduoduo cannot provide such high-quality delivery and after-sales service as Dongge's JD.com.

Even at this stage, Pinduoduo's delivery services are still dependent on Dong Ge.

According to Luo Fan and his plan, when everything is settled, the subsidy of 10 billion subsidies on home appliances and digital products will gradually decrease and will not have an impact on JD's main products.

So the key at the moment is to relax JD shareholders.

This depends on Brother Dong.

Why did Brother Dong tell JD shareholders that Luo Fan was not aware of what he said about JD shareholders? In short, after the initial uneasiness, JD shareholders soon became quiet, and JD did not take any measures to Pinduoduo’s 10 billion subsidy.

If JD.com can keep calm, Taobao won’t do it.

At the same time, several senior executives at the Alibaba headquarters in Hangzhou were also discussing the 10 billion subsidy in General Ma’s office.

"Have you asked Penguin? Do they agree to block all links from Pinduoduo?" asked Mr. Ma.

"I asked, what Penguin means is that they signed a contract with Xingyuan and did not block each other's links. If they breach the contract, the cost would be very high." Mr. Ma's assistant Xiao Wang said.

"How could Penguin sign such a contract with Xingyuan?" Mr. Ma asked with a frown.

"Penguin said that they didn't know that Pinduoduo was from Xingyuan at the beginning."

Mr. Ma's expression became even more ugly when he heard this. Penguin could not block Pinduoduo's links. That is to say, Pinduoduo's 10 billion subsidies can be promoted with the help of Xingyuan Penguin's two major traffic systems.

On the other hand, Xingyuan will directly block the links on Taobao.

Moreover, Taobao does not have traffic support like Xingyuan. Xingyuan, which is fully engaged in traffic promotion, is so terrible. Douyin, Daily Toutiao, Xingchao, Xiaobang, and their partners Baidu Browser and Baidu Tieba. Who can withstand this series of traffic bombs?

[To be honest, I have been using Wild Fruit to read books and follow updates recently, changing sources and switching, and pronunciation aloud. Yeguoyuedu Android and Apple are available.]

From Pinduoduo's announcement of the 10 billion subsidy plan to today, it has only been five days in total, and the transaction volume of Pinduoduo has exceeded 10 million. Moreover, it is all the clothes that few people buy in Pinduoduo before.

Alibaba's senior executives know more than anyone what this data means. Although Pinduoduo has been sloppy, it only announced the transaction volume, not about daily turnover, user purchase rate and other more core data.

But no matter what, in just 5 days, Pinduoduo's 10 billion subsidies have undoubtedly endangered Alibaba's basic market.

What’s even more troublesome is that this is just the beginning. The traffic bombing on Xingyuan has no intention of stopping at all. After such a series of traffic bombs fell, Pinduoduo will inevitably steal the big market on Taobao.

This is not the worst. You should know that Taobao is closely related to Alibaba's core business Alipay.

Pinduoduo is a company owned by Xingyuan, so it is naturally impossible to keep Alipay’s payment link on it. In other words, the stronger Pinduoduo grows, Alibaba’s payment market will also suffer losses. This is also very bad news for Alipay.

This series of bad effects made Mr. Ma feel bad.

Mr. Ma stood up from his chair and pointed to the various data in the big screen ahead and said to the senior executives in the office: "Pinduoduo's 10 billion subsidy has only been released for 5 days, and the relevant product data has surged. We cannot allow Pinduoduo to expand like this.

Now I’ve found a way to prevent Pinduoduo from gaining more users and more market share!”

With the development of the mobile Internet era to this day, the development of e-commerce is actually a bottleneck.

The e-commerce market seems to be very large, with a quarterly turnover exceeding Walmart, a global chain of large supermarkets, and a hundred billion yuan in the money earned on Double Eleven.

But with the stagnation of development, the e-commerce cake is no longer getting bigger. If you share one with Pinduoduo, Alibaba will lose one.

Moreover, Mr. Ma’s intuition told him that the 10 billion subsidy of Pinduoduo this time is completely different from the enemies encountered by Taobao before.

Before, Alibaba's main rival was JD.com, but the competition between the two e-commerce companies was not strong.

Because both parties occupy market share, transaction volume, and money they earn are not of the same magnitude.

For JD.com, the only thing Alibaba pays attention to is JD.com’s business model.

JD.com focuses on high-end products, which obviously has higher profit margins.

For this part of the market, Taobao also created Tmall.

JD has no choice but to watch Taobao seize their market.

Therefore, in the competition with JD.com, there is no doubt that Taobao has always been the one who takes the initiative.

But Pinduoduo is completely different. When Pinduoduo first appeared, it was just a vertical e-commerce platform for fruits and vegetables.

There are too many such vertical e-commerce platforms, and Alibaba has never cared about it.

Who knew that not long after, Pinduoduo began to compete for the low-end market that Taobao gave up in the group buying model, and Taobao was caught off guard.

However, before Taobao could respond, Pinduoduo suddenly launched the next attack, and Pinduoduo directly became the title brand of the Spring Festival Gala.

This is something Alibaba never expected.

Before, Alibaba always thought that the capital behind Pinduoduo was overseas capital, but as Pinduoduo became the title agent of the Spring Festival Gala, Alibaba realized that Pinduoduo was created by Xingyuan or these four alliances.

This chapter is not over, please click on the next page to continue reading! Xingyuan spent 2.5 billion to purchase the title of the Spring Festival Gala for Pinduoduo.

After this series of unexpected actions, Ali was directly stunned.

Before Alibaba could come back to its senses, Pinduoduo went public directly under the traffic bombardment of the four alliances.

You should know that the previous e-commerce competition did not have much traffic support, and Pinduoduo completely broke this "industry rule".

Moreover, there are four major companies behind Pinduoduo, two of which are Internet giants like Alibaba. The traffic they can provide is completely beyond the ordinary people's imagination.

In this way, in just one year, Pinduoduo rose and became Taobao's number one enemy.

Now Pinduoduo has provided another 10 billion subsidy, which is even more passive for Alibaba.

"Mr. Ma, I think our top priority at the moment is to figure out whether this 10 billion subsidy will continue. If it is just in the short term, it would be fine. If Pinduoduo continues like this, even if it lasts for half a year, it will be a very troublesome thing for us." Alibaba's CFO Mr. Wu said.

"No need to check this. I have received confirmation here. Pinduoduo's 10 billion subsidy will be a super long-term plan." said Mr. Cai, ceo of Alibaba.

"It's really a long-term plan? Then we'll be in trouble. Mr. Ma, I think we have to use some means." Mr. Wu said.

"What method?" Mr. Ma asked.

"The most important thing about Mr. Ma's e-commerce industry is merchants and logistics. If Pinduoduo can be restricted from these two fields, even if it cannot stop the other party, it can still reduce its development speed." Mr. Wu said.

"What should I do specifically?"

"Let's talk about logistics first! As far as I know, Pinduoduo and Xingyuan do not have their own logistics. At this stage, Pinduoduo's logistics mainly relies on Santongyida and JD.com.

We can’t do anything about JD.com, but we can give them some pressure.”

"What do you mean is to limit express delivery? Don't let Santong and Yida take Pinduoduo's orders?" asked Mr. Ma.

"Yes, although there are many other logistics companies on the market, there are not many that can be suitable for Pinduoduo.

JD Logistics mainly delivers its own products. It only cooperates with Pinduoduo to help with delivery of digital products, so it is impossible for JD to take over Pinduoduo's express delivery in full. Even JD itself has not achieved JD express delivery coverage on all platforms and all products.

Except for JD.com, SF Express’s price is too expensive and does not meet Pinduoduo’s positioning.

There are also some regional express or small express delivery on the market, which are simply incapable of distributing goods nationwide. Even if you can cooperate with Pinduoduo, it will cause certain problems.

After this calculation, they can choose only Santong and Yida. We hold some shares of Santong and Yida. If we put pressure on this identity, Santong and Yida should agree. In this way, Pinduoduo’s 10 billion subsidy plan will be affected.

"However, if the three-way and one-way team up to not accept Pinduoduo's orders, will it be monopolized for investigation?" Mr. Cai asked.

Mr. Wu quickly explained: "Of course not. We are not going to let Santong and Yida take Pinduoduo orders. We are just asking Santong and Yida to appropriately increase the express delivery price on Pinduoduo, as long as the price exceeds the space that Pinduoduo's business model can bear.

Pinduoduo will accept it, and the operating costs will increase rapidly. Three-Tong Yida can make a profit. Our Alibaba is also a shareholder of Three-Tong Yida, which can also be beneficial.

If Pinduoduo does not agree, it will have to rebuild its own logistics system. Even if it cooperates with small express delivery companies, it may not be able to do it smoothly in less than a year, so their 10 billion subsidy plan will be aborted."

After hearing Mr. Wu's words, Mr. Ma's eyes lit up.

Mr. Wu’s idea is very good. No matter how large the group purchases in Pinduoduo cannot solve the problem of express delivery costs.

If you can write articles on express delivery and increase the price of some goods, then even if you buy a group, the discount will be greatly reduced, and Pinduoduo's 10 billion subsidy will be self-defeating.

Thinking of this, Mr. Ma nodded and said, "This method is good. You can try it. Success and failure have no effect on us. If it becomes a success, it can still interfere with the development of Pinduoduo.

By the way, Mr. Wu just now, you mentioned the merchant? Tell me about this!"

"Mr. Ma, I think the business is not so restrictive." Before Mr. Wu could speak, Mr. Ma's assistant Xiao Wang said first.

"Why?" asked Mr. Ma.

"We have been trying the merchants in fact, but the effect is very poor. Within Taobao merchants, we found that many merchants have opened stores in Pinduoduo.

In the early stage, we tried to persuade them to stop opening stores in Pinduoduo, but they all disagreed. Later, the operation department found some other reasons to block their stores, but they still refused to give up. Some merchants even closed their stores on Taobao.

In order not to lose the merchants here, we can only give up forcing the merchants and let them choose for themselves." Xiao Wang explained.

After hearing Xiao Wang's words, Mr. Ma couldn't help frowning: "Pinduoduo adopts a small profit but quick turnover model. Logically speaking, they can't make much money, right? Why are these merchants so persistent about Pinduoduo?"

"Many of these merchants are merchants we have given up. In order to build the Tmall platform, we have already proposed the core operation circle of Taobao.

We have various requirements for them and charge relatively high fees. Now that Pinduoduo has the opportunity, they are naturally willing to try it out," Xiao Wang explained.

"But didn't I ask you to raise the money back to them before?" Mr. Ma continued to ask.

"It's actually too late for Mr. Ma to increase his money at this time, because they have already opened a store on Pinduoduo. Once they open a store, they will find that there is another advantage in Pinduoduo compared to us, that is, it has a large cash flow, which is very attractive to many merchants."

After hearing this, Mr. Ma completely understood that even if a company has no profit, it can survive.

Take domestic real estate companies for example. Which one is not heavily in debt? But don’t they all live a glorious life?

But if the cash flow of these real estate companies is cut off, they will be completely finished within a month. (For example, Evergrande, you can understand it.)

In fact, it is not just real estate. Nowadays, many companies are trying their best not to make a lot of profit, but to make a time difference and earn cash flow.

Pinduoduo can bring cash flow to merchants, which means that restricting Pinduoduo from the merchants is not feasible.

Alibaba's senior executives also understood this, and they looked at each other without saying a word.

In fact, everyone knows in their hearts that the rebellion of so many small businesses is also closely related to Alibaba's strategy of fully supporting Tmall in recent years.

Taobao and Tmall are on the same app. User searches are given priority to display Tmall, and the requirements for applying for Tmall to open a store are very high. Isn’t this the way for small businesses to make money?

Now that new shopping platforms are emerging, these merchants must try it out, and it is impossible to stick to Tmall.

Mr. Ma also understood this, and he sighed and said, "Since that's the case, let's put the merchant aside! Then let's snipe Xingyuan from the express delivery industry first!"
Chapter completed!