In May, Pinduoduo APP was quietly launched in the app store, but Pinduoduo company did not put much effort into promotion, so there was no splash.
The main promotion positions are still in WeChat and a series of Internet companies owned by Zhang Yida.
On the WeChat public account, Pinduoduo has developed a shopping mall and launched the first phase of the group buying activity - if the group buying reaches 10 people, you can buy a pack of tissue paper for 0 yuan.
The threshold is set very low, and the benefits are real. Mr. Zhang doesn't play with those frivolous things, and he clearly wants everyone to come and have fun harvesting wool together.
Zhang Yida also believes that as long as users feel the high quality and low price of Pinduoduo and the fun of social group shopping, a large wave of users will become loyal fans.
The tissue paper is provided by Ke Xinrou at a friendly price. One pack of tissue paper contains 3 large packs of tissue paper, and only the cost price is charged, which is 3 yuan per pack.
Including postage, it only costs four or five yuan.
It only costs four or five yuan to acquire a new user, which is a low enough customer acquisition cost.
Apps such as Huimin Bicycle and Touronghui are also advertising and guiding Pinduoduo.
However, the final group fight still requires users to forward the event link to the social app and invite friends to participate.
…
Zhao Chunhua is a white-collar worker in Beijing. She rides a small green car to work as usual.
After arriving at the company's office building, she pushed Huimin's bicycle to the centralized parking area and locked it, then turned and entered the office building.
While walking, I looked at my phone, and the Huimin Bicycle APP reminded me "This ride is completed, the actual payment is 0 yuan."
Zhao Chunhua showed a satisfied smile. Some time ago, Huimin Bicycle launched a membership system, which includes monthly membership, quarterly membership, half-year membership, and annual membership.
The four types of cards are priced at 10 yuan, 29 yuan, 56 yuan, and 99 yuan respectively.
Zhao Chunhua is a fresh college student who just graduated last year. She has only entered the workplace for less than a year, and her monthly salary is five to six thousand yuan.
Living in the capital with this little money shouldn't be too difficult.
The house is shared with roommates. I never take a taxi when I go out. I always take the bus or subway.
With the advent of shared bicycles, she did not hesitate to switch to shared bicycles as a means of transportation to work.
There is no other reason than "cheap".
The first shared bicycle to appear in Beijing was Huimin, and Huimin bicycles are also the most popular and can be seen everywhere in the streets and alleys.
Based on the convenience of using a bicycle and trust in the brand, Zhao Chunhua chose Huimin among many shared bicycle brands. Not only did she purchase deposit financing, but she also bought a Huimin Bicycle Annual Pass.
Because the annual card offers the greatest discount, Zhao Chunhua did some math and found that she rides once to and from get off work every day, working 22 days a month, and 12 months a year, so the total number of rides a year is 528 times.
Each ride lasts between half an hour and an hour, and the normal charge is one yuan per ride.
528 times a year is 528 yuan.
Buying an annual pass allows you to ride for free for a year, which can save you more than 400 yuan.
Delightful!
When Zhao Chunhua was about to close Huimin Bicycle's page, an advertisement page popped up, "Pinduoduo and Huimin Bicycle launch a membership reward event, 0 yuan shopping, and a large number of products for you to choose from!"
Zhao Chunhua thought this was quite interesting! After entering the elevator, she clicked on the advertisement page and looked at the event content carefully.
"Follow the "Pinduoduo" public account and reply to "Huimin Bicycle" to get the event link, enter the link to register as a group leader, and invite 9 users to join the group to complete the group purchase.
Each of the 10 users who join the group can get 3 packs of tissue paper worth 19.9 yuan."
There was also a picture of paper towels on the advertisement page. Zhao Chunhua took a closer look and saw that they were the kind of paper towels that cost hundreds of dollars per pack, not the small packs that cost 50 cents.
I began to think in my mind: This activity is great! When I get to the company later, I will ask a few girls to participate together. Isn’t it done?
You don’t spend a penny and you get 20 yuan of paper towels for free.
Such fat wool must be harvested!
After arriving at the company and sitting at the workstation, Zhao Chunhua mysteriously said to the colleagues around the workstation:
"Sisters, something good is happening!"
When several of her colleagues saw this, they also came over and said all kinds of things:
"What's going on? Chunhua, are you going to be promoted?"
"You're so mysterious, maybe you're single?"
"Hey, no." Zhao Chunhua shook her head, took out her mobile phone, opened Pinduoduo's WeChat link page, showed it to her colleagues, and then said:
"When I was riding my bicycle this morning, Huimin Bicycle told me that there was an event where I could get 20 yuan of tissue paper for free."
"Let me tell you, this is an event that can only be enjoyed by Huimin Bicycle Annual Card members and super VIPs.
I can bring 9 people to receive this tissue paper for free, do you want to participate?"
Zhao Chunhua was quite arrogant, as if she was seeking welfare for everyone.
"Not bad! I want to participate in one."
"Thank you Chunhua, I always share good things with you as soon as possible."
All colleagues expressed their gratitude one after another.
“Chunhua, is your event the same advertisement on the homepage of Huimin Bicycle?
I’m not an annual card member, why did I receive an event invitation?”
A colleague clicked on the Huimin Bicycle APP, raised his phone, and showed it to Zhao Chunhua.
Zhao Chunhua was a little embarrassed. She thought that only distinguished annual card members could participate in this event, but she didn't expect that it was a popular product.
The colleague opposite seems to have a husband who picks her up from get off work every day, so she doesn’t have a bike-sharing membership.
This Huimin Bicycle is really unauthentic. Such a good activity has become a mass merchandiser.
How else can I show off my membership privileges?
I'm so angry, forget it, I won't get a membership card anymore.
She misunderstood Zhang Yida. Zhang Yida had thought that the event would only be open to Huimin Cycling members.
But after thinking about it, this is not conducive to the promotion of Pinduoduo.
Only open to members, it can indeed allow Huimin Bicycle members to dress up and experience a sense of superiority, and may even lead to the improvement of Huimin Bicycle members.
But Pinduoduo’s development is limited!
Zhang Yida knew that the window period left for him was very short. There were Ah Li and Goudong in front of him, and Huang Xing was chasing after him.
In this case, it is wise to collect data as soon as possible and increase the scale.
"Oh, it's okay. Doesn't this event require 10 people to participate? Chunhua, please form a group, throw out the link, and let's join the group together.
There are five of us here, wouldn’t it be enough if each of us can recruit two or three sisters?
If the number of people exceeds 10, we’ll start another group!”
Seeing that Zhao Chunhua was a little embarrassed, a colleague immediately smoothed things over.
…
Pinduoduo's data is rising rapidly. Not only Ruixiang and Huimin Bicycle are helping it advertise, but also apps with smaller user bases such as Pate.com, Yimin Wangjin, Yimin Dai, and Ruimin Financial Management are also helping it advertise.
There is an advertisement for Pinduoduo.
In addition, after starting a group tour, there is a time limit. For the first time, Zhang Yida set a very wide time limit, a full 24 hours.
If you have colleagues, ask them to join a group, or send them to Moments to call group friends everywhere.
There are also some people who throw the group link into some classmate group, family group, parent group... all kinds of groups.
The Internet has not been so lively for a long time.
The last excitement can be traced back to a few months ago when Ruixiang Group dropped more than 800 million in Spring Festival red envelopes and Wufu red envelopes.
Zhang Yida and Sun Yutong are sitting in Pinduoduo's office, with a computer in front of them. They are looking at Pinduoduo's backend data.
The constantly beating numbers are a bit frightening.
"Yida, how many days do you plan to promote this event? Today is only the first day, and as of 6 p.m., 50,000 group fights have been successful.
50,000 groups means 500,000 people. Even if a subsidy is 5 yuan per person, the activity subsidy will be 2.5 million yuan."
Sun Yutong finally saw Zhang Yida’s business methods. He is a “little expert at spreading money”!
I heard that more than 800 million was spent during the Spring Festival last year, bringing more than 80 million new users to Ruixiang.
When you scatter coins, as long as you scatter them correctly and you can get your money back, it doesn't mean you can't scatter them.
Didn’t Taobao start off free of charge back then?
“I estimate that there will be 500,000 groups, 5 million users, and the subsidy will be controlled within 25 million yuan.
It ends when the target is reached!
Paper towels are just the first category, followed by laundry detergent, pots and pans and other household items.
It's just that the activity won't be as intense.
The activity may be smaller, but it will continue.
Tissue paper has already launched Pinduoduo’s first shot, and the next focus is to retain these registered users.”
Zhang Yida had already thought about it, first attracting millions of seed users, and then calculating the retention rate for these users.
How to keep it?
Just like fishing, put the bait slowly and do it step by step.
"How is the discussion going on other categories?"
Sun Yutong saw that Zhang Yida was still very clear-headed, so he stopped reminding him and instead asked about the product category.
"It's not easy to talk about. After all, Pinduoduo is still just a showpiece. Many manufacturers in the south don't believe in our strength and are unwilling to take our orders.
So far, we have only negotiated a dozen household product brands.”
Zhang Yida knows how difficult things are. The "factory-fighting" model does not mean that you can just find any factory to cooperate with.
The core of "Pinduoduo" is small profits but quick turnover. Pinduoduo provides the factory with huge order volume, and the factory lowers the unit price, wins by quantity, and gives Pinduoduo the best price.
Previously, Pinduoduo Mall had not been launched yet, so sales had to go to the market, and no matter how glamorous it was, it was still a blank check.
Now, the situation should be different.
After this battle, Pinduoduo should have become somewhat famous in the industry.
If the event ends up with 5 million orders, based on the cooperation unit price of 3 yuan, Ke Xinrou can get orders worth 15 million yuan.
What about the time? Maybe just a week, maybe faster, three or five days.
If you get 15 million yuan of orders in three to five days, how much will it be in a year?
With the case of Ke Xinrou, it will be easier to negotiate with many manufacturers.
“I still have some connections in the south, all of which were made when I worked at Taobao.
I’ll contact them to try and see if they can become Pinduoduo’s supplier.”
It was not for nothing that Sun Yutong was the president of Taobao for several years. Many manufacturers in the south knew him.
"That would be the best! But you don't need too much. What we need most right now are hot-selling products that are cheap and easy to sell."
Zhang Yida doesn't particularly care about Pinduoduo's small product categories. It will definitely not be able to become like Taobao in a short time.
It takes time to replenish categories. Now Pinduoduo’s main focus is household products.
Lower the prices of household products so that users can buy them with confidence.
From now on, as long as users first think of Pinduoduo when buying supplies, that will be half the battle.