From an unknown wild fruit tree to a hot selling fruit with a daily sales volume of over 20000 pounds, the story of "Longcheng No.2" soft jujube kiwi fruit is full of legendary colors.
The story begins in the depths of the jackal and wolf ditch in Dandong City, Liaoning Province. It originated from a accidental discovery by farmer Hu Binglong. While wandering around, he noticed a wild fruit tree that was different from others - the fruit on the tree was about the same size as a jujube, with a smooth skin and a unique sour and sweet taste. Hu Binglong, who had been dealing with farmland for half his life, found it extremely fresh. He brought some fruits home and then began to try transplanting and planting these wild fruit trees, and devoted himself to researching planting techniques.
The second turning point in the story comes from Pinduoduo. At that time, e-commerce platforms were gaining momentum, and Hu Binglong's nephew, Sun Xuyuan, attempted to put his product on Pinduoduo to test the waters, only to find unexpected success. From the first order to 5000 orders per day, this wild fruit has entered thousands of households from the jackal wolf ditch. Nowadays, soft jujube kiwifruit has also become a representative industry that can nurture a group of people.
At present, the story of soft jujube kiwifruit is far from over - in August 2024, Pinduoduo announced the investment of billions of resources to support new quality merchants and industrial belts with product and technological innovation capabilities. "Longcheng No.2" soft jujube kiwifruit has become one of the key agricultural products supported by the platform due to its breakthrough planting technology and excellent variety. On October 14, 2024, leveraging Pinduoduo's Double Eleven promotion, the daily sales of soft jujube kiwifruit reached over 20000 kilograms.
The innovation and entrepreneurship story similar to the jackal wolf ditch soft jujube kiwifruit is still unfolding. In 2024, Pinduoduo announced that it will further increase its support for the new quality industry and significantly reduce transaction fees for high-quality merchants. The total amount of reduction is expected to reach 10 billion yuan in the next year. These real gold and silver supports are creating development opportunities for more people and products.
Pinduoduo seeks change again: new quality supply ignites new vitality in the market
The platform's assistance was a chance encounter for Hu Binglong, but for Pinduoduo, it was a long planned layout.
This time, Pinduoduo has placed the anchor point on "new quality supply". The reason for choosing this' anchor point 'is also very simple, the core of e-commerce is efficient matching between buying and selling. Pinduoduo realizes that in order to further activate the platform ecosystem and expand growth, it needs to start from the supply side, promote market segmentation through innovative products and models, and attract more buyers.
Specifically, 'new quality supply' refers to the deep integration of a merchant's supply chain capabilities with the platform's digital capabilities, resulting in the emergence of a group of new quality merchants with product and technological innovation capabilities. These businesses, with the advantage of their supply chain, are able to respond promptly to the needs of e-commerce consumers and changes in market trends, thereby promoting industrial upgrading and injecting new impetus into the industrial belt.
The primary requirement for a new quality brand is product innovation, and these innovations should be tailored to meet user needs. Taking the Bull socket as an example, as one of the first batch of new quality brands registered by Pinduoduo, the Bull team has developed 5 new quality products specifically for the platform based on insights from Pinduoduo users. Compared to before, these products have been adjusted in appearance and wire length, with a simpler design, higher cost-effectiveness, and a cost reduction of 5% to 10%.
Accurately capturing consumer preferences for product innovation is only the first step. More importantly, new quality brands must also be able to quickly respond to market changes, which requires high flexibility and response speed in the supply chain, as well as deep integration with the platform's digital capabilities.
Since August 2024, Pinduoduo has successively proposed a series of measures to support new quality merchants and new quality industrial belts with product and technological innovation capabilities. In August 2024, Pinduoduo's "Billion Reduction" plan not only reduced transaction fees, but also implemented a package of reduction measures such as service fee refund rights, reduced store deposits, exempted logistics transfer fees in remote areas, and upgraded merchant after-sales services.
Afterwards, Pinduoduo invested 1 billion yuan in subsidies and 2 billion yuan in traffic packages to support new quality agricultural merchants during the Harvest Festival. The special team successively went deep into agricultural production areas such as Kaifeng sweet potatoes, Wenxian yams, Huili pomegranates, and Rushan oysters. During the 2024 Double Eleven period, Pinduoduo vigorously supported "new quality brands" through a subsidy of billions of yuan. On October 8th, Pinduoduo launched the Double Eleven promotion with a subsidy of billions of yuan and launched the "Super Double Subsidy" activity to support new quality brands.
Pinduoduo's support policies for new quality brands have been immediate. In October of this year, after the release of Pinduoduo's 11.11 promotion, Bulls immediately registered to participate in the "Super Double Supplement" activity. After the launch of five products, they quickly sold out, and sales increased by 12 times compared to September, far exceeding expectations. Bulls stated that since the platform returned the promotion fee red envelopes in late August, it is roughly estimated that the amount of red envelopes received has reached 50-600000 yuan, resulting in an 11% decrease in the cost of a single click on a link for customers.
In addition, in addition to various reduction and subsidy policies, Pinduoduo has also opened up its platform data capabilities to merchants, providing full chain support for new quality merchants in terms of product, marketing, operation, and supply chain. As a platform, Pinduoduo relies on its own data capabilities to monitor market trends in real-time and provide timely feedback to merchants, enabling them to quickly adjust their production and sales strategies based on market feedback.
Nowadays, "new quality supply" has become an important lever for Pinduoduo to leverage market growth.
The first principle behind Pinduoduo's changes: equal emphasis on inclusiveness and high quality
Currently, competition among e-commerce platforms is shifting from price wars to a competition of user experience and efficiency. For Pinduoduo, activating the platform ecosystem through high-quality supply has become the key at present.
Inclusive and high-quality are the two core concepts that Pinduoduo has always implemented. Universal benefit is a principle that Pinduoduo has always adhered to. For a long time, Pinduoduo has focused on improving the efficiency of industrial chain collaboration and driving the ultimate cost-effectiveness of platform products. This not only helps a large number of small and medium-sized businesses overcome the high cost barriers of traditional e-commerce, but also provides opportunities for characteristic agricultural products and handicrafts from remote areas to enter the national market.
High quality is the key to improving user experience for Pinduoduo. At the Q2 2024 financial report conference, Zhao Jiazhen, Executive Director and Co CEO of Pinduoduo Group, emphasized that high-quality development is the current focus, and sacrificing short-term profits is necessary for long-term healthy development. He mentioned, "Currently, consumer demand is becoming more diversified, and various e-commerce platforms are actively adjusting their strategies to meet consumer needs. At this time, we should cultivate our basic skills and solidly implement the strategy of high-quality development
Supporting "new quality brands" is a key part of Pinduoduo's pursuit of high-quality development. Chen Lei, Chairman and Co CEO of Pinduoduo Group, said, "In order to ensure the long-term healthy development of the platform, we will continue to improve the ecological construction through a combination of 'support and governance'. In the next year, we will invest billions of resources to support new quality merchants and resolutely carry out merchant ecological governance
Pinduoduo's support is benefiting businesses and practitioners in various industries. For example, in Pingdu, entrepreneur An Fayi gradually expanded a small fake eyelash shop on the Pinduoduo platform, and in just a few years, transformed it into a large factory selling millions of orders. Nowadays, Anfa Translation has opened 4 factories and purchased equipment such as semi-automatic production lines and fully automatic dispensing machines. The number of workers has also increased from more than ten to four to five hundred, and the factory's production capacity has increased from 1000 orders per day to 50000 orders, achieving a 50 fold growth in five years.
Since then, the success of Anfa Translation has attracted more people, and many have embarked on the path of returning to their hometowns to start businesses. Pingdu's false eyelash industry has also gradually expanded to various parts of the country, and even to overseas markets.
In Bozhou, another corner of China, Pinduoduo not only helped the local herbal tea industry expand its market, but also promoted the upgrading and transformation of the entire industry through a series of innovative measures. Entrepreneur Wu Chuang is one of the young people selling flower tea on Pinduoduo. From hundreds to tens of thousands of orders per day, he has now opened his own factory with sales reaching millions. In addition to herbal tea, many people have gradually expanded their business to new categories such as solid beverages, driving the diversified development of the local industry.
These are just one aspect of the current industrial upgrading. With the integration of more new technologies and traditional industries, Pinduoduo is helping more people, more products, and going further in innovation.