Title: Pinduoduo is changing the future of global retail
Website: https://www.pascalcoppens.com/

CONTENT: The video explains how Pinduoduo is changing the future of retail with a combination of entertainment, social, commerce, price and predictability in the market.

TRANSCRIPT
In Chinese these characters 'pin' actually means sharing or group
and duoduo actually means 'a lot'; so together it means 'bundling together'
This is about group buying. Pinduoduo in just 5 years time went from
zero to a hundred billion dollars in GMV revenue
This is amazing! There's no other company that has done that before them.
They came out of nowhere and worth 180 billion us dollars right now.
This company is really amazing! Many people say if you want to understand the future of global e-commerce
try to understand what Pinduoduo is about. Some people describe it as a combination of Disney
and Costco. Disney of course we know that's all about entertainment
Costco is all about low price and choice. The combination is quite interesting.
If we look at the history, Colin Huang, the founder of Pinduoduo, 5 years ago,
he was working for a company that was doing gaming and before that he was part of Google;
he came from the gaming industry which explains the Disney component
but Pinduoduo has really come up with a great idea. Colin Huang in 2015 thought:
there's a billion people in China on WeChat from Tencent, the social media of China;
but there's only half a billion buying online on Alibaba or JDcom (the competitor of Alibaba)
Where are the other 500 million people?Why are they not buying as they are on social
they have a smartphone, but they're not buying. So he figured out in 2015 when he launched the
company that there's half a billion people or more in third and fourth and fifth tier cities in China
that weren't buying online and so he was wondering what do these people want
What can I offer them? That's how Pinduoduo came about. One of the things they care about of course
is good price, because these are lower income cities or towns; so he thought price is critical.
he thought group buying would really solve this problem
That was all about volume he wanted to create; so, his whole concept of Pinduoduo
was about creating lots of volume. Then he thought what are these people buying?
They buy a lot for households, like  vegetables and fruit and meat and all that
things that you need very frequently. That doesn't only bring you volume, it brings you
consumers that are coming back regularly on your site. So he focused on agricultural
products, and not on high tech like iPhones like jd.com did or Alibaba did
a lot with fashion and so on. No... agriculture, the hard work. That's what he did.
The third thing he figured out is that in most households in China it is the women that decides the purchases of
what to buy for the household. So, he focused on group-buying, and on frequent purchases,
agriculture and targeted to women. That was the whole concept. He knew price
was critical, but in order for people to not just buy on e-commerce like they do now,
he thought to create an environment where it's not about searching for products,
it's about making these products available,
and then having what he calls 'impulse buying', think about it
like a sushi conveyor belt in a Japanese restaurant.
That's the concept of Pinduoduo. It's about just letting it float by and then from time
to time you want it; and why do you want it? Why do you buy it? because of recommendations.
So, Pinduoduo created an environment of friends and family recommending these products.
Why would they do that? Because they can get better discounts. You can do individual sales
to buy a product like vegetable or fruit at a specific price, but if you want to get better
price, you have 2 ways to get them, but first of all, this group-buying is only 24 hours for each
product, so within 24 hours you have to decide am I buying it or am i not buying it? If you do,
you can either join an existing group or you can create your own. If you create your own,
it means you need to recommend people, your friends, your family to actually join in,
and buy together more vegetables, fruit, paper or tissue or whatever it is that you need for your  household.
That's the whole concept of Pinduoduo. Now, he thought let's gamify this,
because of the past of Colin Huang coming from the gaming industry. If i now make
this fun then really people are going to buy this because they want to be part of this game.
His idea was very simple: I'm going to try and make lots of games

KEYWORDS

Pascal Coppens, China, innovation, trends, keynote, speaker, public speaker, pinduoduo, gamify, disney, costco, interactive, social ecommerce, goup buying


ABOUT PASCAL COPPENS:

Website: http://www.pascalcoppens.com
Linkedin:   / pacovision  
Youtube channel:    / @pascalcoppens  

BOOK - CHINA's NEW NORMAL

http://www.pascalcoppens.com/shop