Pinduoduo s net loss in 2020 was 7.18 billion yuan, why is the quality of many things in Pinduoduo v

Pinduoduo's net loss in 2020 is nearly 7.2 billion, and it can be said that Pinduoduo's profit model is still in place before, but last year's overall revenue was not very goodThe goods on Pinduoduo are also cheap and cheaper than other platforms, coupled with its pervasive propaganda mode, so more and more people have also come into contact with this platform. <>

The things on this are cheap, which has a lot to do with its uneven quality, because if a normal manufacturer says that this batch of goods is divided into three batches, the best quality of the file is in Jingdong a little bit worse in ** a little flawed and a little bit of a small problem This kind of re-spelling is more, because**different, the same commodity, Jingdong can be sold for 30 yuan, ** can only be sold to 25 spells, Duoduo can only be sold to 20,Even if you are the same store and the same source, it is useless, because everyone else sells 20, and you have to sell 25, then you can't sell it. <>

The scale benefits of Pinduoduo are very obvious, that is, you can see that there are some stores, its sales are more than 100,000, this kind of is a big store, it is cheap, other stores sell this product for 20 yuan, he sells 19 yuan 5, and even says that it sells 19 yuan, you don't underestimate this 5 cents and a piece, in fact, these stores sell a commodity, it earns these few dollars, these big stores can sell cheaper, because it makes small profits but quick turnover, although it makes less profit from a commodity, But it sells well in the marketOther small stores are certainly not as good as it, which creates a vicious circle. <>

Because he sells cheaply, because it sells well, and then complementing each other will increase the location of this store, but it has always been so cheap and it doesn't make money, what should I do? Then you can only find a cheaper source, because the rules of the platform have been set here, others sell for 20 yuan, you want to sell more and sell cheaper, you have to sell 25, then you can't sell it,The cost is lower, and you don't have profit margins, right? So the quality problem above naturally arises.

This is because their control is not strict enough, and the supervision is not in place, so some things are of poor quality.

The goods sold by Pinduoduo mainly compete for market share at low prices, and the quality of low-priced goods is generally not high, and if the quality is high, the cost of goods will inevitably rise. You can't have it both ways.

Because Pinduoduo's products are very low, and they rely on low prices to attract consumers, the quality is bound to be not too good.

Because the things in Pinduoduo are very cheap, many large and small merchants have gone to open stores inside, because the conditions for opening stores are not high, resulting in many inferior products appearing on Pinduoduo.

The current situation of Pinduoduo in 2022 is as follows:

Pinduoduo has just started two years, is in the bonus period, and has just been listed, and the country has introduced the "E-commerce Law of the People's Republic of China", which needs a big change. There are also relevant support policies for new businesses, so the status quo is relatively good.

In the eyes of the public, Pinduoduo tends to grow fast, and it is all selling fake and defective products. There is no need to avoid this, but through the product, what we hope to see is the reform and subversion of the business model, the tilt of market dividends, and the analysis of the commercial value behind human nature.

Pinduoduo's expense ratio is much higher than that of early Ali Even in 2017, Pinduoduo's marketing efficiency (GMV sales expenses) was much lower than that of earlier Alibaba, which is due to the competitive environment and product characteristics. Compared with the early days, Alibaba and Pinduoduo are facing a more fierce competitive environment and need more brand advertising spend failures, while the business model of Pinduoduo's low-price strategy is naturally characterized by higher marketing costs (coupons).

The development trend of Pinduoduo:

In view of the development trend, according to statistics, there are about 800 million network users, ** and Jingdong about 500 million, and there was a vacancy of about 300 million before, but it was picked up by Pinduoduo, and there is the current magic advertising word.

The non-source store group is the current mainstream way to open a store. It started from the first, due to the limitations of the platform's inherent model, it was not widely known, and it was transferred to Pinduoduo, and finally it was carried forward, 18 years later, this model expanded, extended to major platforms, and became the current mainstream.

The non-source store group is mainly based on the source of goods on the previous platform as a channel, and after collection, it is put into our own store to carry out an appropriate amount of price increase**, the biggest feature is to make money with the platform information difference. Then maximize the product display with the characteristics of multiple stores and multiple stores in the store group, and provide a basis for the emergence of popular products.

I think there are the following reasons for Pinduoduo's loss.

The company's growth rate is slowing down, and operating costs are too high.

Because of the whole industry, Pinduoduo is facing many strong competitors, and the growth rate of its own company has slowed down significantly, although its number of users has ranked first in the industry, but the quality of its own users has not risen. From this reason, it can be seen that Pinduoduo is facing very strong competitive pressure, so this also leads to Pinduoduo will spend more costs in acquiring users, which will also lead to a significant increase in the company's operating costs.

The cost of expenses has increased, and the platform subsidy expenditure is too high.

Because Pinduoduo takes the route of low-cost goods, and Pinduoduo has been at a loss level in platform operations. However, as the number of basic users increases, the cost of platform fees will also increase accordingly, which will also incur a large amount of expenses. Moreover, in order to meet the needs of different customers, Pinduoduo is also able to retain more high-quality customers, and subsidizes the company's operating costs.

However, in the long-term subsidy process, Pinduoduo's overall profit has shown a downward trend, which also leads to Pinduoduo's loss.

The investment is too large and the proportion of capital tied up is too high.

In the development of the platform in these years, it has carried out a diversified development model. This leads to the fact that in order to improve the quality and competitiveness of the platform, Pinduoduo will continue to invest in the external environment, and these investments occupy a large part of Pinduoduo's capital, and these investments are some investment projects with long investment time and low rate of return. Therefore, because of the excessive investment ratio, the entire platform has suffered serious losses.

Summary:Pinduoduo is now in the midst of rapid development, and the industry is now growing at a slower pace. I believe that Pinduoduo should adjust its development direction in a timely manner and continuously improve the user experience as its main goal.

Only in this way can we better retain customers and reduce the losses of our platform. Otherwise, sooner or later, you will lose a lot of money, and you will even face the danger of elimination.

Because Pinduoduo's tens of billions of subsidies are much lower than other e-commerce platforms, this price difference is Pinduoduo's own money to subsidize merchants, as well as Pinduoduo's Duoduo to buy food, in order to attract customers, low-priced products are also Pinduoduo's own subsidy suppliers.

Pinduoduo's loss was mainly due to higher operating costs. Because it gives people a lot of subsidies. In fact, this is also the main reason for their losses.

Pinduoduo lost nearly 7.2 billion last year, don't you think it's incredible, do you think this platform has such a big influence, bought so many things, and is still losing money? In fact, it really lost money not only last year, but also the year before lastThe loss of the previous year was almost 6.5 billion, and then this year's loss was about 7.2 billion. <>

Why does he keep losing money? Because the sales expenses he does are very high, Pinduoduo, and now the number of active merchants and active users has gradually surpassed **, but it is indeed a loss of money, because he has spent a lot of money on tens of billions of subsidies, not everything on Pinduoduo is fake, there are some tens of billions of subsidized things, the quality is still good, but these things are cheaper than the official website than other shopping platforms, and these cheap money are subsidized by the platformThis is a large expense, and of course, it is precisely because of this that the number of active users and merchants in Pinduoduo is rising. <>

The expenditure on sales expenses not only includes tens of billions of subsidies, but also includes bargaining for free, including 100 yuan and 200 yuan red envelopes, although many netizens have criticized themselves for not really receiving this red envelope, but there are really people who have received it, and many friends around them have really received this 100 yuan, so the expenditure in this area is also a large number, other platforms rarely engage in this thing, and other platforms are basically membership-based, that is, you spend a fixed fee a month,Then you can get some coupons and stuff like that, it's just a small subsidy, and there's not much loss on that. <>

Pinduoduo can kill from the almost closed online shopping platform market to such a position now, it is absolutely inseparable from its unique marketing strategy, and it has also made a lot of efforts in subsidy, so it is normal to lose money in the past two years, although it is a loss now, but you wait for two years to see, and the market share has been gradually determinedThat profit margin immediately came up, and the mentality was just a loss, and it didn't matter if you lost a little, because you can still make a lot of money in the future.

Because Pinduoduo is cheap, and then many people buy, and the goods received do not match the real thing, because there is freight insurance, so the merchant will lose a lot of money back and forth, and if you want to last for a long time, you can't only be cheap but also have quality.

Because the input cost spent on marketing and subsidy activities is too high, it has led to the loss of so much money, and Pinduoduo's original profit is not large, and it is in the low-end market, which is to obtain profits through large volumes.

Because Pinduoduo is cutting into the market at a low price, it continues to gain market share. Pinduoduo's strategy is destined to have low profit margins and high operating costs, so Pinduoduo will lose more than 7 billion yuan in a year.

Because Pinduoduo has been subsidizing merchants and attracting consumers with low prices, it will lose so much.

The money is basically subsidized by Pinduoduo, and some is used for advertising.

For Internet companies like Pinduoduo, Pinduoduo itself is promoted by sky-high subsidies and advertising, which means that Pinduoduo is not as real as ** or JD.com, because Pinduoduo is full of routines, and I don't like this brand myself.

Pinduoduo lost 100 million yuan last year.

When Pinduoduo announced its annual financial report last year, many small partners expressed their surprise, because Pinduoduo has become the third largest e-commerce giant in China. Under such a premise, Pinduoduo lost 100 million yuan a year, and many people questioned that Pinduoduo lost money. According to data, the net loss belonging to shareholders has been as high as 100 million yuan, which means that many investors have not benefited in the process of investing in Pinduoduo, but have suffered huge losses.

Pinduoduo has spent a lot of money on subsidizing users.

When we mention Pinduoduo as a software, many people first think of PinduoduoTens of billions of subsidies。The reason is very simple, when users promote their Pinduoduo products to their relatives and friends, Pinduoduo can subsidize users in this way, and users can buy goods at a cheaper price. The reason why Pinduoduo will do this is mainly because Pinduoduo's marketing model lies in fission, and it is through this crazy way of direct sales to lay down the market

Pinduoduo also advertised a lot of sky-high prices.

The thing that impressed me the most is that Pinduoduo played a lot of sky-high advertisements at the beginning of its establishment, and at that time, the extreme challenge was a very popular variety show, and Pinduoduo actually sponsored this variety show throughout the whole process, and advertised throughout the whole process. This momentum has continued to this day, and I feel that Pinduoduo has never thought about how to improve the quality of its delivery services and operations, but how to expand wildly。In other words, I'm not optimistic about such a crazy expansion but careless business.

On the evening of April 30, Pinduoduo released its 2020 annual report. According to the report, Pinduoduo's total revenue in 2020 was 100 million yuan (about 100 million US dollars), an increase of 97% compared with 100 million yuan in 2019, and the revenue nearly doubled. However, Pinduoduo still hasn't taken off the "loss" hat, and under US accounting standards, Pinduoduo's loss in 2020 reached 100 million yuan (about 100 million US dollars), while the net loss in 2019 was 100 million yuan.

Although Pinduoduo's performance loss has expanded last year, the two indicators of "number of active customers" and "number of merchants" have exceeded the first series. According to the data, at the end of 2020, Pinduoduo's active platform buyers were 100 million, which has surpassed the Ali system. And Pinduoduo's annual active users have increased from 5.1 million in 2019 to 8.6 million, an astonishing 69% annual growth.

Personally, I think that the reason why Pinduoduo lost so much money is probably that he used all the money for promotion, after all, Pinduoduo's advertisements are really flying all over the sky now.