What are the traditional business models in Pinduoduo?

Mushroom Street business model, Little Red Book business model, Pinduoduo business model.

1. Business model of Mushroom Street: Profits are mainly realized through advertisements, commissions, group purchases and merchant services. Among them, advertising revenue comes from the sales commission income of BANNER on the first screen of the website, advertisements at the bottom of the home page, channel pages, editors' recommendations of excellent store channels, etc. It was the main income of Mushroom Street in the early stage, and mall system was established in the later stage, but some of it was earned by commission. The group purchase channel is profitable through investment promotion and service fees, and the margin income of merchants can be used for other investments in Mushroom Street.

2. The business model of Little Red Book: The business structure of Little Red Book mainly includes commercialization (advertising), community and future trends. Its business model mainly relies on brand advertising, effect advertising and dandelion platform. Brand advertising is mainly composed of open-screen advertising, brand area and hot topics/business topics. Effect advertisers are mainly information flow advertisements, and the income of Dandelion platform will be distributed to talents and MCN institutions. The platform only charges the platform usage fee.

3. Pinduoduo's business model: Pinduoduo's business model mainly relies on its unique group-pooling model, and this kind of discount is extended to more consumers through the power of social networks. Its target customers are mainly users in the sinking market, that is, users who are more sensitive to price and want to obtain more cost-effective products. Through direct cooperation with manufacturers and suppliers, Pinduoduo provides goods at lower prices, and through the power of social networks, this preferential treatment is extended to more consumers. This model has enabled Pinduoduo to quickly accumulate a large number of users.