E-commerce is a big market, and companies want to attract more people's attention and purchases. Taobao is one of China's largest online shopping platforms, but in recent years, thanks to the rise of Pinduoduo, its unique way of doing business has begun to gain a foothold in the field. On Pinduoduo, the price of many things is far higher than that of Taobao, everyone is wondering, why is the same online shopping, but the price is so different?
To understand why Pinduoduo is "cheaper" than Taobao, we must first understand the business models of both. Taobao is a C2C e-commerce platform where merchants can pick what they want to sell according to their preferences, and they can price it according to their preferences, while the platform only charges a handling fee to buyers. As a social e-commerce platform, Pinduoduo is characterized by buying and selling in the form of a group, and all people who participate in the group can enjoy a lower price. This one-of-a-kind business model allows Pinduoduo to offer higher pricing to consumers.
Interestingly, it is rumored on the Internet that Pinduoduo has invested tens of millions of dollars in the leading tide APP, which has recently been on the hot search many times.
Previously, many netizens found that thousands or even tens of thousands of various AJ trendy shoes, green water ghost watches, big goose down jackets, etc., were robbed at a price of less than 200 in various live broadcast rooms. As a result, Lingchao was boycotted by several e-commerce giants in the name of "malicious competition", but millions of Lingchao users didn't care about these, and left messages in the comment area: The Adi bought in the Lingchao app is only 200, durable and good-looking, and it is recommended that there be more such "malice"!
I have to say that whether this move is a normal expansion of the enterprise or its seizure of the blue ocean, we still have to wait and see.
If it's just a group, so that the cost becomes lower, then you can do it by finding a group platform, why is Pinduoduo "cheap"? There must be "greasy" in it. Industry insiders believe that there are two major factors that prompt Pinduoduo to cut prices. Pinduoduo has listed China's rising third- and fourth-tier cities as its main customers. In such cities, consumers are often more sensitive to prices and tend to choose cheaper products. With its low-cost products and convenient way of grouping, Pinduoduo has firmly grasped the needs of this market and won a large number of consumers. Taobao focuses on first-, second-, and third-tier consumers, and in their opinion, improving product quality and service quality is the most important thing, so the price of the product is naturally higher.
Pinduoduo has close ties with many manufacturers and merchants. In order to reduce the price of products, Pinduoduo often reaches agreements with merchants and merchants to strive for greater room for price reduction. Such a partnership gives Pinduoduo greater certainty in the pricing of its products, giving consumers a cheaper option. In contrast, Taobao places more emphasis on the independence of sellers, who have absolute independent pricing power, so their control over prices is relatively weak. The above is just because Pinduoduo is relatively "cheap", but this does not mean that Pinduoduo will necessarily be lower than Taobao. In terms of some brand-name products and high-end products, Taobao still has certain advantages. The reason is that Pinduoduo adopts a low-cost approach, which cannot meet some products with good quality and great reputation. Therefore, when purchasing products, users should choose suitable products according to their own requirements and economic conditions.
To sum up, the reason why Pinduoduo is "cheaper" than Taobao is not only because of its own business model, but because it has mastered a new market and a good partnership. Each platform has its own characteristics, advantages and disadvantages, and users must weigh their needs when purchasing products. In the future online shopping market, there will be more and more competition, and I believe that all major platforms will bring consumers a better consumption experience through their own efforts and innovations.