Compared with the subsidies of other e-commerce platforms with complex algorithms, Pinduoduo's 10 billion yuan subsidies are simple and straightforward. They are either direct subsidies or direct price cuts. There is no need to make a group order or play "full discount". This also allowed Pinduoduo, which originally had an advantage in the sinking market, to win more market share and users. Data from early years showed that during the period of 2018, the number of orders of Pinduoduo exceeded 100 million, with a year-on-year growth of more than 10 billion yuan. Subsidies have since become Pinduoduo's long-term strategy and a powerful means to attract users.
Through this means, Pinduoduo artificially created korea mobile phone number a price depression and snatched a large number of user orders from Tmall and JD.com. In fact, Taobao in the early years also relied on low prices to defeat offline retail and started the prosperity of e-commerce; JD.com also defeated the then book e-commerce overlord Dangdang.com and the traditional home appliance retail leader Suning through low prices, thus winning a relatively stable market position later. However, as Taobao and JD.com continued to grow and develop, their low-price advantage was lost. It was not until 2009 that these two platforms began to pay attention to low prices again.
In fact, almost all e-commerce platforms have launched low-price products since 2009. In addition to Taobao and JD.com, there are also live-streaming e-commerce platforms such as Douyin and Kuaishou. Like Pinduoduo, Kuaishou e-commerce is also based on the sinking market and ushered in rapid growth in performance in 2013. In addition to low prices, another way for e-commerce platforms to please users is to improve service quality and improve user experience. Since 2009, almost all e-commerce platforms have been working hard to improve user experience. Alibaba has determined the transformation theme of returning to e-commerce and returning to users and established the strategy of building Taobao.