There is a 'cold knowledge' in the hot pot industry: the birthplace of Hainan Coconut Chicken Hot Pot is Shenzhen. This Shenzhen specialty dish is now well-known throughout the country. Shenzhen merchant Li Junlun spent three years selling coconut chicken semi-finished set meals as a "bestseller" and even made it onto the dining tables of northern consumers through Pinduoduo.
Far away in Dandong, Liaoning, farmer Hu Binglong domesticated a wild fruit he accidentally discovered called "soft jujube kiwi" into the new internet celebrity "kiwi", and opened up sales on the Pinduoduo platform. During the "Double 11" period, the daily sales exceeded 20000 kilograms.
This year, businesses and brands like this have received greater support from Pinduoduo.
Since August, Pinduoduo has been making continuous efforts to support the "supply of new quality products". Following the "10 billion yuan reduction and exemption" policy, Pinduoduo first invested 1 billion yuan in subsidies and 2 billion yuan in traffic packages to support agricultural merchants during the Harvest Festival, and then launched the "10 billion yuan support plan for new quality merchants". During the "Double 11" period, Pinduoduo vigorously supported new quality brands through the 10 billion yuan subsidy. In just two months, a group of new quality brands and merchants have benefited from it.
Catch a wave of 'Heavenly Wealth and Prosperity'
On October 8th, Pinduoduo launched this year's "Double 11" promotion with a subsidy of billions of yuan. During the promotion period, the billion yuan subsidy will focus on exploring a group of new quality brands, relying on the platform's digital capabilities, and promoting the continuous breaking of new quality brands through full chain support such as products, marketing, and operations.
Since the beginning of this year, the term 'new quality' has continuously appeared in the support policies released by Pinduoduo. What is' new quality '? In Li Junlun's opinion, coconut chicken is delicious and affordable, with innovative fusion and typical characteristics of Shenzhen catering. From this perspective, it is a new quality product. To turn this new quality product into a new quality brand, it is necessary to continuously innovate products and optimize the supply chain.
Li Junlun remembers that the rise of coconut chicken hotpot in Shenzhen was around 2014, and until 2019, most coconut chicken hotpot merchants in Shenzhen were still engaged in offline business. That year, he and his partners founded "Nanmu Garden", specializing in selling semi-finished coconut chicken set meals.
In 2022, it will be launched on e-commerce platforms, and Nanmu Garden will increase its sales through activities such as Pinduoduo's "Ten Thousand Person Team". Later, it will receive billions of subsidies and accumulate a group of loyal customers. Just three months after opening the store on Pinduoduo, orders exploded. The company's monthly sales have skyrocketed from hundreds of thousands of yuan to millions of yuan.
In order to catch up with the wave of Pinduoduo, Nanmu Garden has continuously upgraded its supply chain in the past three years: in order to meet the preferences of buyers in different regions and at different consumption levels, in addition to the traditional Wenchang chicken in Hainan, it has explored suppliers of Qingyuan chicken in Guangdong; To ensure quality, continuously improve production processes such as souring and freezing of chicken meat; Build a coconut water factory to stabilize the supply from the source; According to Pinduoduo's big data, we have developed a "one person meal" based on traditional multiplayer packages, achieving a good result of over 1000 orders per day for order links; Nanmu Garden is still building a cloud warehouse in Shijiazhuang. Some northern cities that used to take four to five days to arrive can now achieve "next day delivery" at the earliest.
Li Junlun said that last year, Nanmu Garden's overall sales on the Pinduoduo platform reached 14 million yuan, with 75% of its revenue coming from coconut chicken meal products. In order to welcome this year's "Double 11" and cooperate with Pinduoduo's "Super Double Supplement" activity, they have been preparing since August, launching more coconut chicken sets of different specifications, as well as other chicken products such as pork belly chicken. "Last year's" Double 11 "sales were around 1.5 million yuan, and it is expected to increase by 20% year-on-year this year
New quality supply becomes the engine for the development of industrial belts
Before the Double 11 promotion, Pinduoduo continued to increase its supply of new quality products. The so-called new quality supply relies on a group of innovative and daring new quality merchants who timely capture market demand and trends, leverage platform digital capabilities, integrate with supply chain advantages, create new quality brands, and promote high-quality industrial development.
In Dandong, Liaoning, the story of Hu Binglong, a villager from Laolang Gou in Hushan Town, building the "Dragon City No.2" is a vivid example of new quality supply. He spent 20 years transplanting and cultivating a wild soft jujube kiwifruit in the mountains, leading the villagers to achieve large-scale planting.
In 2018, Hu Binglong's nephew Sun Xuyuan listed "Longcheng No.2" on Pinduoduo, gradually opening up sales channels from daily sales to hundreds of orders, and then to over 5000 orders. During the "Double 11" promotion, this internet celebrity "Strange Berry" was launched on Pinduoduo's flash sale channel, with daily sales reaching over 20000 pounds.
With the support of the platform, Xu Yuan has more energy to focus on product quality control. He grades fruits according to their appearance and specifications to meet the needs of different consumer groups, and customizes gift box products. Nowadays, almost every household in Xiaolanggou has planted soft jujube kiwifruit, and many villagers have built new buildings as a result.
The story of turning the tide through focus and innovation is unfolding in more small and medium-sized cities, even county towns:
The Bozhou herbal tea industry belt in northwest Anhui province started from the herbal tea business on Pinduoduo and transformed into deep processing of solid beverages, with the industry scale also rising to 10 billion yuan; After two rounds of explosive growth at Pinduoduo, Donghai Wear Armor's industry scale has jumped to a new level, producing approximately 120 million pairs of beauty eyelashes annually, with 8 out of every 10 pairs of beauty eyelashes worldwide coming from here; In Donghai, Jiangsu, since 2019, driven by a group of top Pinduoduo merchants, the false eyelash industry has also experienced the most rapid development in the past five years, forming a detailed division of labor and a complete supporting industrial chain. The number of employees has reached more than 50000, with an annual sales revenue of nearly 3 billion yuan and a production of over 100 million pairs.
One by one, new quality merchants form new quality industry belts: they do not "roll" prices or innovate, but instead "kill" in segmented tracks to create a "bloody path" and expand their business nationwide or even globally.
The results of the new policy in two months have begun to emerge
When Li Junlun, who used to not understand e-commerce, first started doing e-commerce, he chose Pinduoduo, which has a higher tolerance and matching degree for new merchants. After struggling to establish himself, he received increasing support from the platform.
At the end of August, Pinduoduo launched the "Billion Reduction" plan, which will reduce transaction fees for merchants by 10 billion yuan in the next year. At the end of September, the "New Quality Merchants Billion Support Plan" was fully put on the agenda. Pinduoduo will invest 10 billion resource packages in the next year, establish a special team to go deep into 100 agricultural production areas and industrial belts, provide full chain support for new quality merchants, and promote industrial upgrading in agricultural production areas and industrial belts.
The "Billion Dollar Reduction" policy has been implemented for one month, and the platform's first use, then pay reduction benefits and 0.6% technical service fee refund benefits have been expanded from active orders to all orders. The reduction of store deposits has also covered all categories of merchants. We have saved 5% -8% of our investment costs, which will be used to optimize product services and investment flow, "said Li Junlun. Many businesses in agricultural production areas and industrial belts claim to save up to hundreds of thousands of dollars annually, with more funds invested in new product research and supply chain upgrades.
Pinduoduo exempted the logistics transfer fees for orders in remote areas. Businesses only need to send orders to the transfer warehouse in Xi'an and other places, and the logistics transfer fees for the second shipment from the transfer warehouse to Xinjiang, Xizang and other places are all borne by the platform. Li Chuang (pseudonym), a Chinese yam merchant from Henan, said that the price of 3 kilograms of Chinese yam is only 60 yuan, and the shipping cost from Henan SF Express to Xinjiang is as high as more than 50 yuan. With a transit warehouse, the cost has been reduced to within 10 yuan, opening up a broader market for oneself.
The "Double 11" promotion that started in October has benefited a group of new quality brands with innovative capabilities in products, technology, etc. through the "Super Double Supplement" activity.
Bull socket and Pinduoduo have collaborated to develop 5 new quality products specifically for the platform, which not only reduced costs by 5% to 10%, but also sold out quickly after the products were launched, helping Bull achieve a "good start". It is worth mentioning that since the platform refunded the promotion fee red envelope in late August, the brand has received an estimated amount of five to six hundred thousand red envelopes, giving Bull more space for research and development. The sales of two specialized products under Xiaoxiong Electric Appliances, namely the health pot and electric kettle, have increased by 7 times and 9 times respectively compared to the previous period, and the brand expects to achieve a 30% growth in this year's promotion.
Chen Bin, a first level researcher from the Department of Commerce of Hubei Province, previously stated at a roundtable on high-quality e-commerce development that more and more e-commerce platforms are actively taking action to support the growth and expansion of small and medium-sized enterprises. Pinduoduo has invested billions to support new quality merchants and significantly reduced transaction fees. This proactive approach of transferring some short-term profits and pursuing "higher quality growth" together with merchants is of great significance in stimulating market vitality and enhancing consumer confidence.
Now, Li Junlun has developed new products such as dross vinegar hotpot and Rice-meat dumplings under the advice of Pinduoduo operation. Nanmu Garden occasionally receives orders from remote areas such as Xinjiang. Previously, he was concerned that shipping to these areas would increase logistics costs and make it difficult to ensure quality. With the support of Pinduoduo in logistics transit, he also plans to join in this winter to sell the coconut chicken brand in Shenzhen to Xinjiang and Xizang.