Lead
In the tide of the Internet, there is always a figure who is squandering money and dancing, then this figure is "Alibaba", Alibaba is now all over the world and has become the first e-commerce giant in China.
However, Alibaba has not always been in the limelight, so in the first quarter of 2021, Alibaba broke out a series of policy storms one after another, which also brought huge revenue and profit pressure.
In this era of fierce competition, Alibaba's position has also undergone certain changes, and Alibaba is no longer as prosperous as it used to be.
In the midst of this, Alibaba intends to sink into the market and make head-on contact with Pinduoduo, so it will be clear who wins and who loses in this spillover detection.
Who exactly is Alibaba defeated?
1. "War Report".
On July 1, 2021, Alibaba announced its financial report for the first quarter of 2021, but this financial report is not very beautiful, and it has also been discussed by the outside world.
In this financial report, Alibaba's revenue has increased sharply and net profit has fallen to the bottom, where Alibaba's revenue increased by 7%, but net profit has plunged sharply, down 96% year-on-year.
Alibaba's rival Pinduoduo, whose revenue increased by 131% in the first quarter, and even in terms of market capitalization, Pinduoduo's market value also hit a new high, reaching $136.9 billion, even surpassing Alibaba.
As Pinduoduo's market value soars, Alibaba's market value is no longer the best and has been pressed under Pinduoduo's feet.
Second, the rise of Pinduoduo.
As an e-commerce platform that has only been established for less than four years, Pinduoduo has begun to gradually emerge and provoke Alibaba, an e-commerce giant that has been established for more than ten years.
Alibaba's listing time is September 19, 2014, and Pinduoduo is listed on July 26, 2018, so at the beginning of Pinduoduo's establishment, Alibaba is an absolute shelter from the wind and rain.
For Alibaba and Pinduoduo, there is a so-called subordinate relationship, and it can also be seen in Pinduoduo's financial report at this time that the number of active users of Pinduoduo has surpassed Alibaba.
Then on the side of Pinduoduo, there is no doubt about the rise, while Alibaba has gone all the way in the sinking market, and in the first quarter there was a decline in revenue, and net profit fell by 96% year-on-year.
Behind the rise of Pinduoduo, Alibaba is also moving stones to drop its feet, so that Pinduoduo has the opportunity to emerge, Alibaba in the face of the gradual rise of Pinduoduo in the sinking market, Alibaba ordered to go more to the sinking market gradually rise, but at this time Alibaba has given up Pinduoduo this huge cake, Pinduoduo did not hesitate to make the cake a monopoly.
After Alibaba also gave up the huge market of Pinduoduo, it began to target the market of the sinking market, but at this time, not only Pinduoduo began to rise, but even Kuaishou became the second largest e-commerce platform.
As a novice with no strength at all, in just a few years, there is already a very strong threat, that is, Pinduoduo.
Pinduoduo has indeed been very keen on cross-border e-commerce at the beginning, and buying and buying has been a habit of Pinduoduo users, but this has also become the reason for Pinduoduo's growing growth, and even occupied the market with its low-price strategy.
Because of the rise of Pinduoduo, Pinduoduo has also been unlocked to become the largest Chinese Internet company in the United States, and once again surpassed Alibaba with a market value of $136.9 billion.
At this time, Pinduoduo has also spread all over the world, and has even become the world's second e-commerce platform, only falling behind Amazon.
3. The root cause of Alibaba's failure.
Alibaba is facing the rise of Pinduoduo, perhaps Alibaba gave up the big cake of Pinduoduo at the beginning, and Pinduoduo will only be a vassal of Alibaba, but Alibaba shouted: "Water can carry boats and cook porridge!"
In this sentence, perhaps Pinduoduo will become Alibaba's enemy, and I don't know how Pinduoduo realized it, giving Pinduoduo a chance to rise.
At this time, Pinduoduo is like a peek at the guy, has been monitoring Alibaba, and the invincible Alibaba has not adjusted in time, nor has it seen in time.
So Pinduoduo climbed out of Alibaba's surveillance and entered the e-commerce market.
Undoubtedly, Alibaba is like being blind, without a sense of crisis, and has been immersed in the sinking market for too long, and has played enough.
Although when Alibaba took it lightly, Pinduoduo has been making great progress, leading users to consume, and has become Alibaba's enemy.
The time for Alibaba to sink the market has become long, and Kuaishou has ruthlessly snatched up Alibaba's big market, and Kuaishou has also made it the second largest e-commerce platform.
Executives in Alibaba also have a lot of complaints about this, believing that Pinduoduo and Kuaishou are both novices with no strength, and this time Liu Qiangdong made a mistake, not only throwing Pinduoduo's market, but also Kuaishou's market, almost leaving the market empty, not to mention, Kuaishou is also a financial report, and there are already countless active users.
And Alibaba's roots in this is also a long time, all the way through, from Alibaba's initial market out, Pinduoduo is also bit by bit, with a low-price strategy, but also to dispel the concerns of users, Pinduoduo's low price is also the gospel of users.
This is also the reason why Pinduoduo users are active, and Pinduoduo has always adhered to the principle of user experience to ensure that every user is satisfied, so in between, it is difficult for Alibaba to have its own position in the Pinduoduo market.
IV. Conclusion
Alibaba's financial report is not only Alibaba's problem, but also that Alibaba should review itself, Pinduoduo also mercilessly left Alibaba behind in terms of market capitalization, and has become the largest Chinese Internet company in the U.S. stock market.
No matter how much Alibaba wants to go to the sinking market, no one will listen to Alibaba's orders in the sinking market, Alibaba has been immersed in this market for too long and will never come out again.
In the current era of fierce e-commerce competition, enterprises must always pay attention to the needs and experience of users, which is also the reason why enterprises can remain undefeated in the fierce competition, otherwise in the near future, the market value of enterprises will also soar, just like Alibaba, hundreds of millions of annual salaries are just a flash in the pan.
Enterprises should also always pay attention to the needs and experience of users, can not blindly pursue market value, and consumers' awareness of rights protection is also rising, which is of great significance to the development of e-commerce platforms, and is also related to the competitiveness of e-commerce platforms.
Pinduoduo's rise through a low-price strategy and an emphasis on user experience also shows that the market values Pinduoduo more cost-effectively, which is also reflected in Alibaba.
Then Alibaba should take this as a warning, keep an eye on its competitors to prevent their rise, and always maintain innovation and quality services.
In the era of digital economy, the development and transformation of enterprises are changing with each passing day, and enterprises should also keep pace with the times, constantly adjust their strategies, and adapt to market changes, so that enterprises can maintain their competitiveness and market position.