by After the “10 billion subsidy”, the “10 billion agricultural research” is becoming a new driving force for pinduoduo’s development.
On March 21, pinduoduo released its financial report for 2021.
The data showed that although the overall consumption growth in the past year was less than expected, pinduoduo Gmv still maintained a high-speed growth of 46%, reaching 2441 billion yuan.
What’s more important than the increase in transaction volume is that since the launch of “10 billion agricultural research” in August last year, pinduoduo has embarked on the growth track of “increasing income and profits”.
The financial report shows that the net profit attributable to ordinary shareholders of pinduoduo in the fourth quarter was 6.620 billion yuan, while the net loss in the same period of 2020 was 1.376 billion yuan.
On March 22 after the announcement of the financial report, pinduoduo’s share price soared 18.85%.
In the course of economic development, there is a saying often mentioned: “there is no stability without farmers, and there is no wealth without workers”.
On the other hand, industrial development is unstable, and it is impossible to get rich by developing agriculture.
However, why is pinduoduo able to “work harder and be luckier” on the road of “agricultural enterprises”? Author: Qian Hao editor: Angela 01 e-commerce pinduoduo in the “Silver Age” the commendable part of this financial report is not the growth, but the growth in the “Silver Age”.
The central working conference in 2021 once pointed out that China’s economy faces three pressures: demand contraction, supply shock and weakening expectations.
In the field of e-commerce, the market penetration rate has basically reached the upper limit.
By the end of 2021, the number of mobile shopping users in China has reached 1.112 billion, the industry penetration rate has reached 94.7%, and the user ceiling has gradually reached the top.
The growth of users is sluggish.
While the whole market enters the Red Sea, the marketing expenses are constantly increasing.
The new consumer track, which was still hot last year, is collectively cold, and the “imagination” of the new brand is very little.
In 2014, Yu Liang once said that real estate entered the “Silver Age”, but now, e-commerce is also in the silver age.
The short video platform has substantially cut into e-commerce, and the e-commerce industry has shifted from incremental competition to stock competition.
Chen Lei also said bluntly in the teleconference: it is difficult to achieve long-term rapid growth.
Future growth needs strategic and structural evolution.
Last year, pinduoduo focused on the development of agricultural science and technology and launched the “ten billion agricultural research”, but it played a role in helping the development of e-commerce and opened a new development path in the “Silver Age”.
Agricultural products are necessary for everyone’s life.
According to statistics, the average number of domestic residents buying fresh agricultural products, including vegetables, fruits and meat, is between 3 and 4 times per week.
So far, the e-commerce rate of agricultural sales has not exceeded 10%, so there is a huge development space; Secondly, because the price of agricultural products is generally not high, the terminal price fluctuates greatly by store rent and labor cost, which determines that the online price of agricultural products has greater advantages over other categories.
These factors determine that vigorously developing the sales of agricultural products not only means opening up new growth space, but also effectively improving the activity and stickiness of consumers, thus becoming a new “drainage portal” of the platform.
The financial report data also proves that in the fourth quarter after the promotion of “10 billion agricultural research”, pinduoduo’s marketing expenses decreased by 23% year-on-year, while at the same time, the average monthly active users reached 733.4 million.
In general, pinduoduo’s per capita order frequency reached 70 orders in 2021, an increase of 45% year-on-year compared with the per capita data of 49 orders last year.
The annual average consumption of active buyers increased to 2810.0 yuan, an increase of 33% over the previous year’s 2115.2 yuan.
At a time when the traffic cost is constantly rising, pinduoduo has not only realized the “double reduction” of marketing expenses and management expenses, but also expanded the user base and increased consumer activity.
The reason is that the agricultural related businesses such as buying more vegetables and the increase of agricultural related orders under the “zero Commission” policy of agricultural products can not be ignored.
The core of pinduoduo’s internal competitiveness has gradually evolved from pinduoduo’s speed to pinduoduo’s quality, re purchase and consumer satisfaction.
However, the success of pinduoduo’s agricultural policy is not a model innovation as in the past, but a “tough battle” in which a large amount of investment has finally achieved results.
02 10 billion agricultural research, what is the research? Pinduoduo is not the only enterprise that regards agriculture as the focus of development.
On November 7, 2021, Yu Minhong revealed that New Oriental plans to set up a large-scale agricultural platform to help farmers live.
For a while, the voice of New Oriental’s transformation live broadcast was overwhelming.
However, due to the favorable weather and location, Dongfang selected 335 goods in total in two months, with a sales volume of 4.5476 million yuan.
The development of Oriental Zhenxuan has proved that agriculture is a blue ocean, but it is not an easy blue ocean.
“Grain is not grown on supermarket shelves”.
To realize the e-commerce of agricultural products like other industrial products, it is necessary to sort out and integrate the production and circulation links such as product clustering, grading, processing and packaging in agricultural production areas, and establish agricultural storage, logistics and technical infrastructure.
It is also necessary to attract more farmers to join the e-commerce army and make efforts to promote it step by step.
There is no shortcut in this.
Therefore, in recent years, China attaches great importance to the development of digital agriculture and rural areas.
With the introduction of the action plan for promoting the development of big data and the strategic plan for the development of digital villages, the Ministry of agriculture and rural areas has successively issued a number of proposals, including the three-year action plan for “Internet +” modern agriculture and the implementation opinions on promoting the development of big data in agriculture and rural areas.
The process of pinduoduo becoming a “agricultural enterprise” also involves a large amount of resources, The process of gradually building rural e-commerce infrastructure..
