Pinduoduo surpassed Alibaba in market value in just eight years.
It took Alibaba a full 24 years to sit in the No.1 position, and the time for the change in the position of top power has been unprecedentedly shortened. The rise of overseas power of Chinese technology enterprises is indispensable.
Under the reality of the peak development of domestic e-commerce, the fierce battle of going global in e-commerce is evident to all. Temu, which played an important role in the booming performance of Pinduoduo, has risen in just one year.
Although its size is still far from Amazon, Temu's astonishing development speed even amazes its friends.
This is the unique speed of the Chinese internet. "Temu's aggressive investment and rapid growth are unprecedented not only among Chinese overseas companies, but also among global companies," said a Google insider.
The rise and fall of Alibaba and Pinduoduo is not only a turning point in the fate of the top forces, but also a full witness to the deep adjustment of the entire e-commerce industry and the manifestation of overseas market capabilities.
A popular saying is that 2023 is the most intense year for China's cross-border e-commerce in the past decade, and conversely, it is also the mildest year for the next decade.
Over the past few years, Pinduoduo and ByteDance have created growth myths in China. Represented by the rise of SHEIN, Temu, and TikTok Shop, the development speed of China's internet needs to be recalculated, and the competition among giants has also taken on new dimensions.
A generation will eventually grow old, and there will always be someone who is young.
With the change of China's consumption model, Pinduoduo is further encroaching on the territory of Altian and JD.com in China. This year's "Double 11", the strategy of major e-commerce companies to "return to low prices" confirms the favorable timing, location, and people of the Pinduoduo model.
As a successful overseas product, Temu and Shein share the same goal. Experience is accumulated domestically, but in order to be effective when going abroad, it is necessary to undergo extreme localization and transformation.
In terms of distribution speed, it is lightning fast, demonstrates its skills in supply chain integration, is omnipotent in live streaming sales and marketing, has more confidence in cost control, and has a superior low-priced strategy.
Although it still burns money, it burns more efficiently. Still pursuing low prices, but being able to "stop loss" at a faster pace. In the past, a home appliance company went global as a lone player, but now it's about forming a team, cooperating, thinking, and complying.
Along the way, singing loudly and advancing rapidly, naturally accompanied by perilous situations. The literal meaning of Temu's formation is "Team up, Price down", following the domestic low price strategy.
The "full custody mode" is crazily suppressing prices, and the domestic supply chain only manages to accept orders and ship to domestic warehouses. Subsequent shipments, operations, and sales are all completed by the platform.
Under multiple pressures such as increased service rates, increased traffic, and strict control, the profits of Pinduoduo merchants are constantly being squeezed, and the game between merchants and platforms is intensifying.
The global market is full of enormous opportunities and unpredictable complexity.
In overseas markets where the rule of law is strict and personal privacy protection is highly valued, especially in North America and Europe, this escalating cross-border e-commerce war is not only a lightning war that burns money and smashes people, but also a protracted battle of strategy, security, and enforcement.
TikTok has been imprisoned several times, and the various review risks surrounding it are a microcosm of the difficulties faced by Chinese technology companies going abroad. Whether it is SHEIN or Temu, it may also be a foreshadowing of the future fate of these e-commerce platforms.
However, the biggest enemy is often oneself. Alibaba Tencent, which has been surpassed, and Pinduoduo ByteDance, which has taken the lead, are no exception.
No one can always stand at the peak, "AT" has experienced the feeling of defeating giants and being overtaken by latecomers, so we are always curious about who will next stand at the peak and why.