"After two years of development, Pinduoduo achieved good operating results of 70.9 billion GMV last year. The number of registered users reached 298 million, and the number of monthly active users was 112 million.
This year our goal is to exceed 100 billion GMV and establish our status as the third largest e-commerce platform in China.
According to the combined data of DouShi and Musical.ly, the number of global registered users has reached 882 million, with 245 million daily active users and 521 million monthly active users.
You can take a look at this map.”
Zhang Yida called up a three-dimensional global map. On the huge screen, which was several meters by several meters, a blue planet was rotating at a constant speed.
Zhang Yida's fingers gently slid on the screen behind him, just like sliding a globe, and Asia appeared on the front.
Zhang Yida's Rooster territory in East Asia was touched lightly, and the map automatically enlarged, and a line of data appeared at the same time: "165 million daily active users."
Zhang Yida clicked on "Beijing" on the map, and a set of data "5.16 million daily active users" appeared.
Click on "Magic City" and the data will pop up: 5.72 million daily active users.
Click "New York" and data pops up: 450,000 daily active users.
Click "Saint Paulo" and data pops up: 620,000 daily active users.
…
Zhang Yida made a demonstration of the number of daily active users of DouShi and Musical.ly in major cities around the world.
Dongfang Yu, who was in the audience, opened his mouth wide. He looked at the continents in different colors on the map and said in disbelief: "This DouShi and Musical.ly cover North America, South America, Europe, and part of Asia.
?”
"Yes," Zhang Yida nodded, "Currently, except for the African market that has not been entered, Asia is not fully covered, and other regions and countries in the world are covered."
Dongfang Yu nodded and smiled: "This map of yours is quite interesting. Is the data updated in real time?"
"certainly."
Zhang Yida clicked on the lower right corner of the large screen behind him to switch to another page.
It is still a global map, but it is equipped with more data, including online users in various countries and cities, videos uploaded today and many other data indicators.
The numbers are jumping wildly, increasing and decreasing.
"Did you make this software yourself? When will you make one for us at New Oriental? Let me also see the number of students attending classes in each city every day."
Zhang Yida smiled at Dongfang Yu and said, "Okay! I'll give senior brother a discount for a set of 8.88 million."
Dongfang Yu waved his hands repeatedly, "It's so expensive, so we can't afford it. How many students do we need to make up lessons for to make money back?"
Ma Dongmin chuckled, "Brother Yu, you can't be too wealthy. You must actively embrace technological innovation."
"New Oriental Online attaches great importance to technology. We have launched a learning management system, APP, and live teaching website with independent intellectual property rights..."
Hearing Liu Zhiping coughing at the side, Dongfang Yu reacted, smiled apologetically at the investors around him, and waved to Zhang Yida to continue speaking.
Zhang Yida continued: "Dou Vision currently has 165 million daily active users, while Musical.ly has 80 million daily active users overseas.
There are 245 million daily active users around the world, and more than 100 million short videos are uploaded every day.
These data all prove Douyin’s leading position in the field of short videos.”
"OK, we all understand the fundamentals of Zhonghe Group."
A middle-aged man with a tall nose and deep eyes answered, "Now please tell Mr. Zhang about the valuation of Zhonghe Group. I believe that the investors here are just like me, and they are a little impatient."
This person’s name is Bao Zheyu, who is the head of Asia-Pacific region of BlackRock Group.
BlackRock's Asia Pacific headquarters is set up in Hong Kong, so foreigners like to give it a Chinese name.
After Zhonghe Group released the news of Series B financing, BlackRock immediately expressed its investment intention.
BlackRock is the world's largest asset management company, managing more than $6 trillion in assets.
Considering the energy of the other party and the possibility that Musical.ly will encounter various difficulties in its overseas development.
Zhang Yida agreed to BlackRock’s request and invited Bao Zheyu to participate in Zhonghe Group’s Series B financing.
"Okay," Zhang Yida smiled, "Pinduoduo is valued at US$10 billion, DouShi and Musical.ly are valued at US$20 billion.
The total equity held by Bilibili and Canxing Culture exceeds US$500 million.
Therefore, the pre-money valuation is US$30.5 billion.”
"Pinduoduo is valued at US$10 billion? How did you get this?" Bao Zheyu said with a very surprised look.
"Compared with Ali and Goudong, we also have the GMV valuation method as a reference."
Bao Zheyu, who works for BlackRock's Asia-Pacific division, is no stranger to Ali and Goudong. They are the two poles of China's e-commerce, with one having a market value of more than 300 billion U.S. dollars and the other with a market value of more than 50 billion U.S. dollars.
SoftBank and Gaoling, who invested in these two companies, have made a lot of money.
“Today, when China’s e-commerce landscape has taken shape, does Pinduoduo still have a chance?”
Bao Zheyu's tone was full of doubts, and he sighed: "Mr. Zhang, I know you are a very good entrepreneur.
But sometimes, excellence is not omnipotent. It is not an easy task to snatch food from the two giants."
Zhang Yida was not angry either. He smiled lightly and said, "Mr. Bao, you may not understand China's national conditions.
China is still a developing country, although there are tens of millions of middle-class families traveling around the world and buying various things.
But that’s not all about China!
80% or even 90% of Chinese people’s monthly salary is no more than 3,000 to 5,000 yuan. They have mortgages, car loans, wives, children and parents to support.
They don't have too high pursuit of quality of life, just passable.
In other words: I like high-quality and cheap things!
As for Pinduoduo's C2M model, anufactory, customer to factory, the abbreviation is "customer to factory".
By reducing the intermediate links, manufacturers can make small profits but quick turnover, and users can get cheap and easy-to-use items, which can be regarded as a win-win situation for both parties.
This kind of factory that cooperates with Pinduoduo is called Pinduoduo factory or Pinduo factory.
Pinduoduo uses a game-like ordering mode to gather orders.
The specific manifestation is: in order to enjoy greater discounts, users call friends and do group purchases together.
Pinduoduo has a long-term strategic cooperation with Penguin, China’s largest social platform, and can enjoy Penguin’s massive traffic.
This provides great help for ordering, and users can quickly complete information transmission on social platforms.
Even users will spontaneously form a group buying group. When they see a product they like, they will post the group buying link in the group and everyone will buy together.
By saying so much, I just want to tell Mr. Bao that China still has a folded world called "Outside the Five Rings."
"Outside the Fifth Ring Road? Does it mean the suburbs or rural areas far away from the city?"
Zhang Yida said with a smile: "Mr. Bao is indeed a China expert, he revealed the secret in one sentence.
No e-commerce company has yet vigorously explored this market, and Pinduoduo is the first to try it.
As long as we capture the entire market, it will only be a matter of time before we surpass Goudong, and we can compete with Taobao!"
Bao Zheyu carefully chewed on the content of Zhang Yida's words, the world outside the Fifth Ring Road.
As head of Asia Pacific at BlackRock, he has read too many reports on China.
China has indeed become richer, but there are also many people engaged in low-end manufacturing and low-efficiency agriculture.
As the world's leading asset management institution, BlackRock mainly serves wealthy clients.
The strategy in China is almost the same.
BlackRock cannot provide services to China's vast rural areas and third- and fourth-tier cities, nor can it make money from these people.
But after hearing what Zhang Yida said, it seemed good to make money from these people by investing in Pinduoduo.
Pinduoduo does not need to reach the level of Ahri. It can surpass Goudong and reach half of Ahri's market value. BlackRock's investment can also earn more than ten times the return.
“We at Blackstone Group are very optimistic about Pinduoduo’s development.
Blackstone Group has been laying out logistics real estate in China. When Pinduoduo develops to a certain extent, it will definitely need to lay out logistics and express delivery.
Blackstone can provide some help in this regard and help Pinduoduo improve its ecological layout."
Zhang Liping, senior managing director of Blackstone Group and chairman of Greater China, spoke.
Over sixty years old, he is in good spirits and speaks with great energy.
He is worthy of being a top celebrity who has served as CEO of Credit Suisse Greater China and director of Merrill Lynch Investment Bank, among other senior positions.
Zhang Yida lamented that he was very accurate in seeing the problem. Logistics and distribution is something Pinduoduo must face and pay attention to.
Blackstone, a top international PE company with over US$300 billion in assets under management, is also very interesting.
I like to speculate in real estate, and I am particularly optimistic about Chinese real estate. The scale of management of real estate funds is actually higher than the scale of management of private equity investment funds.
Logistics real estate generally provides customers with a full range of services including site selection consultation, planning and design, and engineering construction based on customer supply chain management requirements.
Find suitable locations in designated areas to "customize" warehouses for customers, and provide long-term lease contracts and property management services.
Provide customers with services such as logistics value-added, supply chain extension and property leasing throughout the entire industry chain.
If Pinduoduo doesn't follow Goudong's example and Suning develops its own warehousing properties, it would be a good choice to cooperate with logistics real estate.
If Pinduoduo wants to improve its industrial layout, logistics and distribution are an indispensable part.
If we cannot complete the closed loop, we will always lag behind others in terms of cost suppression.
In particular, Jack Ma has the ambition to control three connections and one connection. When the time comes, Pinduoduo is afraid that he will have no choice but to cooperate with Shunfeng and Goudong Logistics.
If you want to do your own logistics, Zhang Yida feels that cooperation with a third party is not a very safe approach.
High-quality warehousing is in the hands of third parties, which is not conducive to long-term control and reduction of logistics costs, and there is also the risk of being constrained by others.
And if you invest too much in your own warehousing and continue to "burn money" with your own funds, there may be problems such as difficulty in financing and long project payback periods, which will put pressure on operations.
In those days, Goudong's land acquisition was not expensive, but he was criticized by investors for a long time.
Pinduoduo is only engaged in logistics now, and it is better to stick to the property model, so the difficulty should not be too high.
But it’s not impossible, finance is a good tool!
Pinduoduo's current main task is not logistics and distribution. The top priority is to become an e-commerce platform with a GMV of 100 billion, establishing itself as the third largest player in the industry, and even surpassing Goudong.
Zhang Yida put his thoughts aside and smiled at Zhang Liping, "Okay! However, for now, we still plan to adopt an asset-light model and put user growth and GMV growth first.
Once the status and own advantages are established, it will not be too late to invest in assets.”