Pound more business model analysis of the operation

DuoDuo's business model is roughly divided into positioning, operation mode, profit model perspective of these three, not much to say, open to engage.

First, the platform positioning

Pingduoduo was founded in September 2015, is a third-party social e-commerce platform to C2B group, that is, a kind of online group purchase to buy a certain commodity.

The core concept is e-commerce + social

In the social e-commerce model of Pinduoduo APP, anyone can initiate a group purchase and mobilize people around them to buy, and this model has a strong sense of user engagement.

In this model, anyone can make their voice heard, and is a KOL, based on acquaintances and acquaintances to do business, which also solves the problem of trust,

Participating Users

First, the leader of the initiative to initiate a group buy

Want to buy their own needs at a low price, so the reason for the group to take the initiative to share it with others

Second, the participants who have received invitations to participate in the group

Second, the group will be invited to the group, and the group will be invited to the group. People (family, friends, colleagues, etc.)

Three platform merchants

For small and medium-sized sellers, more attention is paid to traffic and precise users. Poundland can bring more traffic and precise customer groups to generate higher stickiness, which will lead to a higher repurchase rate, conversion rate and retention rate.

Four Mainstream e-commerce model inventory

Second operation mode

Pound mode

The traditional way to play the social e-commerce is to add a shopping mall plug-in on the social platform, or to add a community communication function based on e-commerce. For example, WeChat built-in Jingdong's WEBAPP

But in Jinduoduo on the real integration of e-commerce and social, in order to reach a deal, the participants must participate in the social game. The process is shown in Figure

2.2 Advantages of Group Buying

Traditional group buying, such as Baidu Nuomi and Handla, does not have a limit on the number of people, and the price is the same for 1 person to buy and for 100 people to buy, which is just a simple discounted sale.

And the group is, the number of buyers to reach a certain number of advantages, the seller's price is attractive enough. Both sides *** with the same attraction, and ultimately the deal. And the grouping process, consumers in order to achieve the goal, will form a self-media. Take the initiative to help merchants to promote, the real realization of viral dissemination.

Pooling requires two factors: one is the price to absorb customers, and the other is a large enough social platform to provide sharing.

And Poundland relies on WeChat socialization, low entry fees to attract upstream seller prices, just have these two points.

2.3 Pound Together Disadvantages

One, in the long run, the shopping mode of Pound Together is not in line with the user's consumption habits, but also increases the cost of shopping

Two Pound Together is more suitable for small amounts of high-frequency words of commodities, such as fruits, cosmetics, and daily life consumables.

II Profit model

Why is Poundland so cheap?

Pinduoduo's unique business operation model has achieved its low price. Pinduoduo main group shopping concept, the form of shopping is used and relatives, friends and other forms of group together to buy goods.

For example, if a product is sold individually, it costs 100 RMB, but if 20 people buy it, it can be cheaper, for example, 80 RMB.

3.2 "Group Buying + Micro-Distribution"

Pinduoduo has both the concept of group buying and Taobao distribution.

Micro-distribution play: if you become my distributor, you distribute the user to buy goods, you have a rebate, and so on, generally to three levels.

3.3 Pinduoduo future profit model

① commission + billing

Meituan, hungry, drop, etc., once the O2O entrepreneurial windfall of almost all the products of the profit model is commission + billing.

② advertising (CPC, CPM, etc.)

Ali Mom, Taobao through train, search rankings, home page ad space display, etc. are all e-commerce profit model.

③ brand exposure advertising

For example, in cooperation with the brand for the "dollar treasure" type of activities, participants need to complete the group to be able to draw a prize, in the process of brand exposure.

④ Merchant margin

Special stores such as the nautical stores, maternal and child stores to pay the merchant margin will also become one of the future profit model.