Pingduoduo (PDD) is listed on nasdaq in the United States with a market value of about $30 billion.Both alibaba and jd.com took more than 15 years to go public, while PDD took only three.PDD has accumulated 300 million users in three years and is now the third largest e-commerce platform in China.PDD is so good. Is PDD worth 30 billion dollars?

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• The first reason that PDD is so good is mainly because its team is great.

First,Huang zheng, the founder of PDD, has a relatively high shareholding ratio.He is an excellent student, all the way to the famous school recommended large company.He majored in computer science in college and master’s degree, and later worked in Google.After he started his business, he successively founded an e-commerce operation company and a game company.That helped him much run pinduoduo.

What really stood out was his team of investors.It’s full of famous man, like Sun tongyu who is taobao’s first CEO.He is particularly good at using low-price models to capture the market, especially good at using brutal growth methods.The routine he is good at is very consistent with PDD.

The other is Duan yongping, the founder of bawang and BBK.The pleasure of the bully is his masterpiece.He later invested in a range of companies, including netease.Duan yongping is said to have four apprentices, the boss of OPPO, the boss of Vivo, the CEO of BBK and now the founder of pindou duo huang zheng.Duan yongping paid $620,000 for the right to dine with buffett at a charity dinner.At that time, duan yongping took huang zheng to attend buffett’s dinner.Among pinduoduo’s investors is Ding lei, the founder of netease and previously China’s richest man.He is particularly good at making products, but also good at running games.This investor team also includes wang wei, the founder of sf express, who knows logistics best.In addition, wang wei is also a person who has forged a feud with jack ma.Ma yun once had business to seek wang wei twice, wang wei did not meet him.Later, wang wei have something to find ma yun, but ma yun also did not meet him.Later, the two people set up their own logistics companies.Wang wei also wants to do e-commerce, the two sides kill each other.Wang wei also wants to support a platform like pinduoduo.So huang zheng is not fighting alone.And this is not a battle for pinduoduo alone.Judging from the investor list alone, huang zheng has pulled several galaxies apart from other entrepreneurs.

• The second reason for pinduoduo’s success is that it is so well oriented.

In the last two years, a word is very popular in the Internet circle, that is, consumption upgrading.It is assumed that users are pursuing higher quality, better experience and healthier life because of the improvement of residents’ living standards.So many enterprises began to do entertainment, food, fitness, no KTV, high quality rental and so on.This putative target group is the so-called emerging middle class.According to wang xing, the founder of Meituan, graduates only account for 4% of the population.Sequoia capital once posted a circle of friends that more than 700 million people do not have a credit card and more than 1.2 billion people do not have a passport.Pinduoduo is aimed at the so-called market outside the fifth ring road, namely, third-tier, fourth-tier cities and even villages outside the fifth ring road in China.This is actually a very large market.Many people say that pinduoduo is demoting consumption when everyone is upgrading consumption.Domatters doesn’t think it’s a consumer downgrade.After all, the aging problem in China even all over the world is becoming more and more serious. A large proportion of the elderly have just got a smartphone and just learned to use WeChat. For them, they have not been upgraded at all, let alone downgraded.Others did find something they couldn’t get before, and they thought it was a good deal, so it wasn’t a downgrade.

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• The third reason for pinduoduo’s success is that it has developed three keywords.

The first keyword is WeChat.As the largest APP in China, WeChat has more than 1 billion users and has a huge traffic dividend.Tencent is also one investor of Pinduoduo .Actually, tencent invested in jd before pinduoduo.However, the cooperation mode between jd and WeChat is to advertise in WeChat, which has a low utilization rate of WeChat and fails to make good use of WeChat.And pinduoduo USES the way of pinduoduo group, directly with the help of WeChat friends to let users pull their relatives and friends to the inside through the way of “people pull people”.As a result, it has extremely high utilization rate of WeChat, and gained many users at a very low price.

The second keyword is taobao.Taobao early also depends on selling cheap goods and miscellaneous brand goods to start.Once it was successful, it wanted to move into a more mainstream consumer market. It upgraded its brand  and pushed its Tmall brand.In this way, these small and medium-sized businesses began to be a little crowded out, leading to the cost of these small and medium-sized businesses in taobao is increasingly high.On the other hand, the demand and people who want to buy good and cheap goods is always there.This is like having a huge amount of potential energy without an opening.Pinduoduo appear to catch out from taobao is out of these flows.

The third keyword is insight into human nature.Before starting pinduoduo, huang zheng was actually working as a game company.The games they play are the borderline stuff, what we call porn games and soft porn games.They are the ones who understand the deepest and most fundamental needs of users and how to retain them.They are very good at this.Pinduoduo now there are some gamification settings, such as the orchard is so that users can continue to brush pinduoduo.It keeps users coming back at a very low cost.Huang zheng once said, the core of Buy together is not cheap, but to meet the feeling of cheap in the hearts of users.All these show that this is a team with a deep understanding of human nature.

Will pinduoduo have any crisis or problems in the future?Domatters thinks there may be three main points:

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1.Pinduoduo has been in continuous loss.Pinduoduo has been running a business for more than three years, and its accumulated losses have exceeded 1.3 billion yuan.Of course, the loss itself is not a problem, because both amazon and jd have a long time of large-scale losses.The purpose of losses is often to build a moat.It could be channels, it could be logistics, it could be user loyalty, it could be supply chains and so on.At present, the moat of Pinduoduo is not particularly obvious.For example,for the aspect of users, pinduoduo users are often cheap users.These users are easy to come by, but they have very little loyalty.It’s possible that if other platforms offer lower prices or higher subsidies, these users will simply walk away.We don’t see pinduoduo particularly strong in other areas, like the supply chain.