At present, Taobao, JD and Pinduoduo have the largest number of users in China’s e-commerce platform. First of all, Taobao gives people the impression that it is an online department store, with a wide range of goods, and the annual double 11 double 12 activities are relatively large, whileTmall under Taobao is more like a large monopoly market. Then there is JD, whose advantage is fast logistics, but the overall price is too expensive. Moreover, JD’s products are self operated, with high cost, but its reputation is still very supported by customers. The last is Pinduoduo, which has the advantage of low price, but it still needs to be strictly controlled in terms of quality. Pinduoduo’s businesses mainly come from factory direct selling mode, self-employed (Taobao transfer) and farmers, fruit merchants, etc.
Taobao, as the leader of China’s e-commerce platform, has the widest popularity and the largest number of users. Moreover, as the earliest e-commerce platform in China, Taobao is also the most mature. There are also Tmall and Taobao special offer APP split up by Taobao, which are aimed at different customer groups. And the core advantage of Taobao is Alibaba group, which has formed a strong ecosystem. Because it is e-commerce, Taobao does not have a good social system, and there is no social platform cooperation, while the other two have cooperation with the largest social network platform in China, so this is an advantage for the other two, but a disadvantage for Taobao.
JD, with its own unique operation mode, also has its own loyal customer group through self operated, brand joining and rapid delivery of JD Logistics. The main trading volume of JD is driven by large consumption, such as household appliances and digital products, and the repurchase rate is also high. The disadvantage of JD is that the loyalty of users generally comes from its own brands and the joining of big brands. Generally, small businesses will not have too much traffic, so in the long run.
Pinduoduo is able to be on the market in three years and surpass JD in market value in five years, and achieves a tripartite balance with Taobao and JD in China’s e-commerce industry, its strength is really extraordinary. There are three main factors for Pinduoduo’s success: first, channel sinking to tap new online consumers; second, ultra short supply chain to change the original circulation mode of e-commerce; third, relying on social groups to quickly obtain a large number of users. At present, the platform is in the dividend period. Pinduoduo’s disadvantage lies in some problems left by the rapid development history, such as the poor quality of products, the high price of products users do not pay, and so on.
Another common advantage of JD and Pinduoduo is that both platforms have a cooperative relationship with Tencent technology, and Tencent has the most popular social platform in China, with the largest customer traffic.
In China, when consumers buy digital products, such as computers, TVs, household appliances and so on, most of them choose JD. After all, JD is born of digital products, so the fake products are much less. Although the price is a little higher, you should believe that no matter it is online or online, the principle of “the higher the price, the better the quality of the merchandise” is the same, because businesses need to get benefits.
Secondly, when consumers buy clothing products, they usually choose Taobao, because its price is relatively medium, and the quality is also in line with the price positioning. In addition, the products of medium or high grade can be chosen independently. Compared with the other two e-commerce platforms, Taobao has more complete product categories, more people-friendly prices and more users.
Finally, for example, when people buy some daily necessities, they don’t have high requirements for the quality of products, such as paper towels, slippers, etc., or when they buy a small number of things and want the free shipping service, they usually choose Pinduoduo to buy these, because it’s a common psychology of consumers to spend the least money to buy what they want.
As early as 2018, China has become the largest B2C e-commerce market in the world, with sales of $1.36 trillion. In the same period, the number of online shopping in China reached 610 million, which is the country with the largest number of online shopping. Until now, driven by various factors, Chinese consumers have a stronger love for online shopping than before, and even some silver haired people have joined the trend of online shopping. What’s more, in this trend, many foreign brands have seized the opportunity to successfully open their own online stores in China.