Reborn in 08, Public Enemy of Competitors

Chapter 101 Pinduoduo's Second Wave of Offensive

The next day, news about Pinduoduo was like a stone thrown into the waters of the e-commerce industry.

Pinduoduo's daily sales of ginger and garlic exceed 10 million yuan; affordable supply quells market panic.

"Garlic prices soar, ginger prices soar, Pinduoduo bucks the trend by lowering prices to reassure consumers."

How does Pinduoduo, which sells 100,000 jin (50,000 kg) of ginger and garlic daily, ensure the supply of epidemic prevention materials through direct sourcing from production areas?

Jingdong, Ali, Tencent and other competitors received the news almost simultaneously, and their first reaction was, "You can do it like this?"

Looking at Pinduoduo's sales figures, Liu Dong fell into deep thought.

They finally secured Series B funding and started relentlessly pursuing Ali, only to have Pinduoduo suddenly emerge out of nowhere.

After a long while, he slapped his forehead in frustration: "How could I not have thought of that!"

"There's nothing to regret."

Xu Xin said, "How much is the average order value for ginger and garlic? Jingdong's logistics are geared towards high-value goods; otherwise, it wouldn't be enough to cover costs."

"That was how it used to be, but it's different now."

"9

Liu Dong said, "Judging from the rising prices of ginger and garlic, they can definitely be used as a lead-generating SKU for Jingdong."

Xu Xin said, "Even if what you said is right, the key question is, where are we going to find a stable source of goods?"

Liu Dong smiled smugly: "I asked around. My hometown, Suqian, is vigorously promoting high-efficiency agriculture, and there are garlic planting bases there. Jingdong can directly connect with the local government."

Then, raising his chin, he said, "Silence can 'help farmers and alleviate poverty,' and I, Liu Qiangdong, can do the same to help my hometown."

"That's definitely a good news story."

Xu Xin nodded in agreement. Liu Dong may not be as influential as Jack Ma nationwide, but in Suqian, his influence is probably second only to Xiang Yu.

Liu Dong changed the subject, "There's something else. Shen Mo sent me an invitation, wanting me to join Pinduoduo as a brand representative."

"Our current relationship with Shen Mo is more about cooperation than competition."

Xu Xin analyzed carefully, "Moreover, in terms of customer base, Pinduoduo's user group mainly consists of middle-aged women and housewives who like small favors and pursue low prices, which does not conflict with Jingdong's high-consumption group."

"That's what I think too."

Liu Qiangdong grinned: "Pinduoduo's current strategy is less aimed at JD.com and more at Taobao."

Xu Xin said, "So, I'm really looking forward to Ma Yun's next move, whether he will nip Shen Mo in the bud."

"I'm afraid it won't be that easy. This kid is a bit strange."

Liu Dong couldn't help but sigh, "Every time you think he's reached the end of his road, he inexplicably comes up with a new idea."

O

"So?" Xu Xin pressed.

"That's why I decided to join Pinduoduo."

Liu Qiangdong said, "No matter who's going after Jack Ma or Ali, I, Jingdong, will definitely lend a hand!"

Meanwhile, Ali Baba.

When Wu Yongming and Cai Chongxin rushed to Ma Yun's office, the door was wide open, and they walked straight in.

Jack Ma's face was somewhat gloomy as he handed over the briefing about Pinduoduo.

"Take a look."

"7

"Mr. Ma—Mr. Ma—"

Wu Yongming could vaguely sense the anger in Ma Yun's eyes.

Sigrún has taught at the Iceland University of the Arts as a part-time lecturer since and was Dean of the Department of Fine Art from -. In – she held a research position at Reykjavík Art Museum focusing on the role of women in Icelandic art. She studied fine art at the Icelandic College of Arts and Crafts and at Pratt Institute, New York, and holds BA and MA degrees in art history and philosophy from the University of Iceland. Sigrún lives and works in Iceland.

Jack Ma said, "It's one thing that YiTao can't compete with YiTao GO, but how come it's even worse than Pinduoduo, which was just established!"

"Mr. Ma, that's because YiTao GO and Pinduoduo are collaborating."

Wu Yongming explained, "We release a batch of ginger and garlic regularly and in fixed quantities every day to drive traffic to Pinduoduo."

Cai Chongxin added, "Currently, only Pinduoduo can provide such a stable supply of goods online, so traffic and users naturally flow to it."

"Where did Shen Mo get so much ginger and garlic?"

Jack Ma frowned deeply: "Could it be that we can predict the future?"

"this----"

Cai Chongxin sighed and said, "Maybe it was just luck. When Pinduoduo first launched, its product selection was ginger and garlic. At the time, sales were mediocre, only a few hundred orders. Who could have imagined that it would run into H1N1!"

"Yes, Shen Mo was just lucky!"

Wu Yongming immediately chimed in, saying that he couldn't very well say that he was incompetent.

"If it's just luck, then why didn't we have that luck?"

Jack Ma snorted coldly, "With an Alibaba-like company like this, why hasn't anyone thought to stockpile ginger and garlic?"

"It's probably too late to start stockpiling now."

Cai Chongxin said, "The price of ginger and garlic has been rising, and now a lot of people are trying to hoard them."

"Even if we could stockpile, we shouldn't."

Jack Ma said helplessly, "Our Alibaba platform is a platform, not a self-operated business. We can't just go out into the fray and steal business from the merchants, can we?"

"You're absolutely right!"

Wu Yongming said in a wronged tone, "Originally, YiTao's distribution-based viral marketing was about to catch up with YiTaoGO's social viral marketing, but who could have imagined the flu as a variable —"

"You can't entirely blame yourself for this."

Jack Ma raised his hand and pinched his brow. His subordinates were incompetent; it seemed he had to step in himself!

Cai Chongxin said, "Jack, before Pinduoduo becomes a force to be reckoned with, shouldn't we—do something?"

Jack Ma's face showed a rare hint of hesitation. The reason why former Taobao CEO Sun Tongyu was ousted was precisely because of his persistence in the lower-tier market, which caused a power struggle within Alibaba.

Ali's current strategic direction is branding, internationalization, and betting on the consumption upgrade in China.

What is Pinduoduo?

An e-commerce platform that relies on low prices as a gimmick and targets consumers who are experiencing a downgrade in consumption!

Ahri is putting in a lot of effort to deal with this lowly platform; it's like porcelain hitting clay—winning wouldn't be honorable, and losing would be even more embarrassing.

"We don't need to take action openly."

Cai Chongxin suggested, "First, we can start by working on the supplier side. Pinduoduo's core product categories are rice and noodles..."

For grains, oils, fruits, and vegetables, there aren't yet long-term, stable supply chain barriers established. Why can't we, Alibaba, also launch some projects to help farmers?

"Before joining Pinduoduo, did you secure a batch of goods from key production areas in advance and sign exclusive agreements with local cooperatives and agencies?"

"Is there anything else?"

Jack Ma frowned deeply.

"Pinduoduo is currently integrated with Tenpay and Zhifubao."

Cai Chongxin said, "We can use activity subsidies and rebates to guide high-frequency shoppers on Pinduoduo to complete payments on Taobao, gradually reducing the frequency of their purchases on Pinduoduo."

"That hits the nail on the head. To us, e-commerce platforms like Pinduoduo and Jingdong are nothing but dirt and rubble."

Jack Ma raised an eyebrow. "As long as they don't have their own payment tool, Zhifubao is a powerful hand that chokes them!"

By June, the prices of garlic and ginger were like a runaway horse, changing every single day.

Panic spread rapidly, with panic buying taking place in almost every vegetable market, from first-tier cities to county towns and townships.

The internet is filled with criticism, just like in a past life, with people making up jokes about how garlic and ginger are so expensive, jokingly saying that vegetable prices are rising faster than housing prices.

"Garlic prices went from 1.5 yuan to 2.8 yuan, and you're telling me this is just market dynamics?"

"Some people are profiting from the national crisis, and the relevant departments aren't doing anything about it!"

"Don't even mention it, here in Shanghai, a pound of garlic costs 6 yuan!"

"As expected of a Shanghai gentleman, the Shanghai currency he uses is definitely different!"

Just when public opinion was boiling and everyone was on edge, Pinduoduo's page continued to list affordable ginger and garlic every day without fail.

The price is about 2% lower than the market price, and it's 9.9 yuan with free shipping, plus group buying discounts.

Suddenly, Pinduoduo's reputation soared. If it were to launch a price cut now, users probably wouldn't complain.

-

Amidst much attention, the kind-hearted Mr. Shen, representing Pinduoduo, appeared at a planting base in eastern Shandong.

Behind him were neatly stacked boxes of ginger and garlic, while cameras from CCTV and Shandong provincial media were lined up in front of him.

"Mr. Shen, Pinduoduo has consistently maintained affordable prices for ginger and garlic during this period. How have you managed to do that?"

"We have established a direct sourcing system in advance at the production site and signed long-term supply agreements with cooperatives to lock in prices and quantities."

Shen Mo said, "Therefore, even during periods of drastic market price fluctuations, we can still ensure that our supply system remains unaffected, and simultaneously balance the interests of farmers, platforms, and consumers."

Some people say that Pinduoduo is using this opportunity to put on a show. What's your opinion?

"Even if it's just a show, I think it's a good show that benefits the country and its people."

Shen Mo smiled and said, "Pinduoduo is not just giving away ginger and garlic, but also warmth and people's hearts."

17

The CCTV reporter was taken aback and kept throwing out all sorts of tricky questions. Fortunately, Shen Mo's questioning skills were comparable to those of Section Chief Ma.

"We are urgently coordinating with a large number of partners to increase the efficiency of procurement and distribution of related products and do our best to ensure supply. At the same time, we will maintain communication with the main production areas to ensure that the next batch of goods can arrive in time. We must stabilize prices where necessary and maintain the required quantities."

"Many people call Pinduoduo a platform with a conscience," what's your opinion?

"This is all thanks to the contrast with our peers, especially Ah—never mind, I'd better not say anything more."

Shen Mo subtly belittled Ahri, then righteously gave Pinduoduo a GG.

"We at Pinduoduo were simply doing what a Chinese company should do!"

"Enterprises must be responsible to their investors, but even more so to the people and the nation!"

His upright demeanor was captured on camera and, barring any unforeseen circumstances, will appear on CCTV News that day.

However, as soon as the interview ended, Shen Mo immediately changed his expression, with a sly smile on his face.

"Boss, the phone."

"Who called?"

"Mr. Huang."

Zhong Xue handed over the phone, and Shen Mo answered it with one click, asking what was wrong.

"Mr. Shen, the platform's current order volume far exceeds the team's capacity. We need to hire more people."

Huang Zheng's tone carried a hint of urgency.

Shen Mo said, "It's easy to find a thousand soldiers, but hard to find a general. What we need most right now are middle and senior managers who can help Pinduoduo take the next step."

"Well, we can send headhunters. They can poach as many of China Supply's elite troops as they can!"

Huang Zheng said, "As for the general you want, I actually have a good candidate."

Shen Mo pressed, "Who?"

Huang Zheng said, "Do you know Sun Tongyu, the former CEO of Taobao?"

"Him?" Shen Mo asked. "Would he be willing to join Pinduoduo?"

Huang Zheng said, "I don't know if he's willing or not, but I know he definitely wants revenge against Alibaba and Jack Ma!"

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