Rebirth Starts at 7 Million

With the listing of Pinduoduo, throughout June, the biggest news of major domestic media basically revolved around Pinduoduo.

For a while, Pinduoduo became the biggest hot spot nowadays.

Because the existence of Pinduoduo is a miracle in itself. In just one month since its listing, Pinduoduo’s market value has exceeded 250 billion Hong Kong dollars, which is almost 230 billion when converted into Huaxia currency, and almost 300 million when converted into rice yuan. billion yuan.

Such a large Internet company with a market value of 30 billion yuan has been established for less than two years.

What's more, Pinduoduo's stock price is not only caused by the stock market. In terms of the number of users and trading volume, Pinduoduo is basically on the same level as JD.com, which has been in business for more than ten years, and is second only to Taobao, the e-commerce overlord.

Taking out any of these data is enough to attract attention.

Even recently, many experts have come to analyze Pinduoduo’s success, and some people have made courses and sold them online. A course can be sold for hundreds of dollars.

And these so-called experts like to compare Pinduoduo with Taobao.

As the strongest e-commerce giant in China, Ali's status has been unshakable for so many years, but from the market point of view, Ali has risen to the limit, and the subsequent improvement is only the increase in the number of netizens, and Pinduoduo still has a lot of future. Long way to go.

In addition to Pinduoduo, there is another e-commerce platform that is also rising rapidly recently, and that is Amazon.

It is not appropriate to say that Amazon has risen. They just made some changes and are no longer as rigid as they used to be.

After these changes began, Amazon has been expanding rapidly with the accumulation of the previous ten years, and its market value has repeatedly broken new highs.

Its founder even rushed to the fifth place in the world's richest list.

The brilliant achievements of Amazon and Pinduoduo have made the e-commerce industry the favorite of international financial capital, and the stocks of the two companies have also risen accordingly.

And all of this, Luo Fan doesn't care about it. Compared with these imaginary things, Luo Fan wants to think carefully about how Pinduoduo will develop next after obtaining new funds.

Now that Pinduoduo has been successfully listed, there are at least 30 billion yuan in Pinduoduo’s company account. Naturally, such a large sum of money cannot be put in the account to earn interest, and it must be spent.

But how to spend it, where it is spent, whether it is used for advertising, subsidy, or specifically assisting a certain industry, these are all prudent decisions.

Of course, these matters cannot be decided by Luo Fan himself. Pinduoduo’s affairs must be discussed by the four bosses. After they have discussed it, they will hand over the relevant strategies to Pinduoduo’s management. A series of plans will be formulated based on these strategies.

In fact, not only Pinduoduo, but also the current style of Xingyuan as a whole.

If it is placed inside Xingyuan, it is the boss Luo Fan who decides the strategic direction, and then other managements specify the route.

As for the decisions made by Luo Fan, there has not been a single mistake so far, so the entire Xingyuan executives are now unconditionally implementing the various decisions of President Luo.

However, as Xingyuan's business scope is getting wider and wider, Luo Fan seldom participates in detailed planning anymore.

Most of the things are handled by the heads of Xingyuan's various departments.

For relatively stable departments such as Daily Toutiao, the game department, and the art department, Luo Fan has not been involved in it for half a year.

Douyin, Pinduoduo, Chip Alliance and other departments and branches that have made big moves recently are the focus of Luo Fan's attention.

This afternoon, Luo Fan had a conference call with the four bosses.

Obviously the other three bosses are also considering the follow-up development of Pinduoduo.

"Three, I think you are a little bit carried away by the amount of money in your account. There are indeed tens of billions in Pinduoduo's account, but the money is still far behind Taobao!"

"Naturally, it is far worse than Taobao, but Pinduoduo is not small now!

Besides, Ali is one of the four Internet giants, and their core business is Taobao.

Pinduoduo is neither Xingyuan’s core business nor our Baidu’s core business. Such a direct comparison is unfair. "President Li said.

"Mr. Li is right, but I understand Mr. Luo's thinking. Although Pinduoduo's listing is very successful, the pressure actually starts today.

After going public, it is unlikely that we will get money from various companies to finance Pinduoduo again, and various operations must be more formalized, which is a new challenge for Pinduoduo. "Mr. Lei said.

As Mr. Lei said, it is already very difficult to raise funds after listing. We can only increase shares from the stock market. However, this behavior will be monitored by the China Securities Regulatory Commission. The money can be added as soon as the family discusses.

But even so, it is still necessary to go public. The first purpose is not to raise funds, but to gain popularity. Over the past few years.

With the drainage of the title of the Spring Festival Gala, although Pinduoduo's expansion has not yet reached its limit, if it wants to go further, it must rely on greater traffic.

The listing is a very good time. The hype and sensation during the listing, every move after the listing, and the release of the annual report will all be hot news.

"Mr. Lei's words express my concerns. In my opinion, there are currently two plans for Pinduoduo's follow-up development. One is to continue to conduct large-scale drainage, increase new users and cultivate user habits, but doing so will make our funds sharply. consume.

The second plan is to gradually introduce a profit plan. With our current size, it is not difficult to make a profit. However, the growth rate of users will inevitably decline if we do this. However, many major shareholders have suggested that we do this.

Which of the three do you think is more suitable? " Luo Fan asked.

"Of course it's the second one. Those shareholders are short-sighted, and they can't listen to their ideas." Dong Ge said.

"No, Lao Liu, you are wrong. Those shareholders are not short-sighted. On the contrary, I think they are very smart." Mr. Lei said.

"That's right, Lao Liu, if you think about it carefully, these people are all elites in the financial and Internet fields. How could they not know that only long-term investment can lead to higher income in the future?

The reason why they urge us so much is that they have already obtained high profits and are unwilling to wait with us any longer. "President Li said.

"I agree with Mr. Lei and Mr. Li, so we don't need to pay attention to them. The right to vote is in my hands," Luo Fan said.

In Luo Fan's view, many Internet start-up companies, with the help of venture capital, have finally gone public.

Before going public, they had unlimited potential and great possibilities. Shareholders were also very concerned about the company's development. Everything was focused on the company's future, and they didn't care whether it was profitable or not.

But after going public, the shareholders seem to be a different person. Before, they encouraged Internet companies not to make profits but to grab the market, but after going public, they hope that the company can make profits immediately, and even sacrifice the future as a price.

Are these shareholders dazzled by money? Or have they changed their minds?

In fact, they are not. These venture capital companies need to take advantage of the opportunity of listing to cash out.

Because throughout the history of the Internet, except for a few top companies, other Internet companies have not seen a large stock increase in the n years after listing.

For example, Meituan in Luo Fan’s previous life was listed in Hong Kong City in 2018. By 2022, the stock price has tripled. This kind of income is very good.

But this is Meituan! If it weren't for the rise of Toutiao in the previous life, Meituan would be the next Internet giant.

Meituan has tripled in four years, but if it were any other company, it might not even double in four years.

At this time, shareholders will naturally try every means to increase the value of the company's stock faster, and the best way to increase the value is to make the financial report look better.

How can the financial report look good? That, of course, allows these Internet companies that have just gone public to start making profits immediately.

Once Internet companies listen to their words and start to make profits at all costs, they will immediately push behind them. When the time comes and the stock price is the highest, they can take the opportunity to cash out profits on a large scale.

These are the trickiest and most familiar routines played by big capital.

The four bosses are naturally very clear about these things, and they will definitely not let Pinduoduo take such a path.

"Since we have decided to take the path of steady development, what should we do next?" Mr. Lei asked.

"I don't know much about e-commerce, so let's listen to Mr. Luo and Mr. Liu!" Mr. Li said.

"Then let me talk about my opinion first!" Dong Ge said: "I plan to start from two directions: the first is agriculture, and the second is the clothing industry. Simply put, it starts with food and clothing.

Clothing, food, housing, and transportation are the four essential needs of everyone. As an e-commerce platform, we cannot handle housing and transportation, but we must not let go of clothing, food, and transportation.

Clothing is very simple. We directly communicate with clothing factories and shoe factories like now, and let them come to Pinduoduo platform at the best price. We will give extra traffic and strive to achieve a win-win situation for all three parties.

As for food, whether it is staple food, fruit, meat or snacks and drinks, Pinduoduo can use Xingyuan's best-quality big data algorithm and traffic promotion to form the lowest-cost group buying model. "

After listening to Brother Dong's words, Mr. Lei and Mr. Li agreed with each other.

After thinking for a while, Luo Fan said: "President Liu's idea is fine, I think it's okay to do it this way, Xingyuan can also provide the algorithm, but I think it needs to be changed in terms of traffic.

In the future, Xingyuan will gradually reduce Pinduoduo's advertisements on Xingchat, Daily Toutiao and other apps, and instead start to transfer Pinduoduo's advertisements to Douyin. "

"Transferred to Douyin? Why is that?" Brother Dong asked in a daze.

"Because I want to promote a brand new business model." Luo Fan replied.

"What business model?" Mr. Li asked.

"This kind of business model has actually been tried on Pinduoduo before." Luo Fan replied.

"Boss Luo, you are not talking about live streaming, are you?" Brother Dong was the first to respond and asked.

"That's right, it's live streaming."

The live streaming that Luo Fan mentioned here is undoubtedly the live shopping that he learned from Douyin in his previous life. This is a completely different model from the other three.

In the previous life, Douyin mainly aroused the user's shopping desire to purchase, while the other three companies made choices when users had needs.

Theoretically speaking, the market of the latter is definitely much larger than that of the former, but Byte has no choice.

But now, Douyin and Pinduoduo are considered a family, and they can just form a good complement.

In the previous life, there were often serious shortcomings in logistics, after-sales service, returns, and quality in live streaming.

With the resources of Pinduoduo, these problems will be much less.

"Pinduoduo has so many products, and it is definitely not enough to rely on live streaming to bring goods traffic." Dong Ge said quickly,

"Of course, it's not just live streaming. Douyin is a short video platform. Pinduoduo merchants can send video advertisements to Douyin, and there will be corresponding purchase links on it.

After the merchant uploads these videos to Douyin, Douyin will distribute them according to random traffic. If the effect is good, then increase the traffic. "

"Is this form of advertising really acceptable?" Mr. Lei asked.

"It should be possible, because Xingyuanjie's advertisement is promoted in this way."

"That's it! Then there should be no problem." Mr. Li said.

The other two also nodded. Now there is no Internet company that does not know that Xingyuan is good at promotion.

"Then what about Douyin's live streaming?" Dong Ge asked.

"Our Douyin also has a live broadcast room. Traditional e-commerce companies just put products on the website and let users find and understand by themselves. Although there is a customer service function, communication often does not achieve the best results.

The mode of live e-commerce is to allow merchants to have enough time and a clear enough way to introduce their products or services, and the questions raised by users can also be fed back at any time and answered in the form of video, so as to attract sellers and consumers. The distance between buyers, in simple terms, is to bring the distance between offline people to online. "

After listening to Luo Fan's words, Brother Dong was the first to react.

The way Luo Fan said, to put it bluntly, is to let users make impulsive consumption through the stimulation of video and language during the live broadcast.

This way of shopping is completely different from ordinary e-commerce platforms. Ordinary platforms are actually the same as users visiting supermarkets. The things are there, and it is up to the users to buy or not.

And this way of shopping depends on how the anchor guides.

After thinking about these things, Brother Dong said: "This plan should be feasible. It seems that I have to spend some energy researching this new shopping model."

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"The method is the method, but don't forget the essence of online shopping. Product quality, delivery time, and service are the fundamentals." Mr. Li reminded.

Brother Dong smiled and said, "Don't worry! I've been doing e-commerce for so many years. I know this area well. Pinduoduo has been improving this area. Now the quality problem has improved a lot."