To The Moon

Many people think that$PDD Holdings Inc(PDD)$  Pinduoduo is very unfriendly to brands, or even anti-brand. I have been thinking about this issue, and today I will briefly talk about my understanding.

My understanding is mainly to draw a direct conclusion by answering two questions.

1. Why do brands exist?

What role have brands played in the long river of history?

A trustworthy mass brand means excellent product strength and high-quality after-sales services.

In a business society that is moving from disorder to order, a trustworthy brand is like a pearl in the dark night, which can reduce transaction costs and promote transaction speed and frequency.

Why do many excellent brands move from a single product to diversification?

"Today, we cheer for Sun Wukong, only because the demon fog is coming back again."

For example, Xiaomi has been established for only more than 10 years, and it has done everything in all walks of life.

Xiaomi does everything because the masses need it.

Some industries are too profitable, and buying Xiaomi may not be the most cost-effective, but it is valuable to buy it without suffering losses or being deceived.

The existence of brands, for the society as a whole, its core value is to reduce transaction costs.

Because transaction costs are reduced, people are willing to pay extra for brands.

2. Why do platforms exist?

And what is the value of platforms like Pinduoduo and Taobao?

Is it just to move offline hypermarkets online? Obviously not that simple.

Their existence is also to reduce transaction costs and better match transactions.

At this point, there is a conflict between the value of the platform and the brand. But compared with the self-moral constraints of the brand, there is no doubt that the platform can go further on this road.

Back to our sentence above:

"A trustworthy mass brand means strong product strength and high-quality after-sales services."

Why does Pinduoduo implement such a strict after-sales policy? In fact, it has smoothed the after-sales value contained in all brands.

Maybe Brand A and Brand B, in the widespread perception of users, Brand A has better after-sales service.

But as long as they are selling goods on Pinduoduo, their after-sales service is equally good. This is the new perception that Pinduoduo has instilled in users.

Why does Pinduoduo care so much about low prices? Because we cannot talk about product strength without considering the price.

If the after-sales service of Brand A and Brand B is the same, and the products are not different.

But Brand A is cheaper than Brand B, then what Brand A represents is advanced productivity.

The platform exists for advanced productivity.

3. Is Pinduoduo anti-brand?

So to answer today's question, is Pinduoduo anti-brand?

I can only say that Pinduoduo is a touchstone for brands. It does not oppose brands, but it tests brands.

In the commercial society, how much money you can make depends on whether you have pricing power, and behind the pricing power is differentiation.

The more services that can provide products that others do not have, the more valuable the brand will be, just like Apple.

In an era where infrastructure is becoming more and more complete, all brands need to ask themselves, what differentiated value do you provide?

Emotional value is also considered value. The key to the problem is whether you have it?

Customer service responds within three seconds;

Express delivery is available through STO Express;

After-sales service returns are within seven days;

Products are all made in Yiwu;

…

Ask yourself, what is the value of your brand?

Why should consumers pay for your brand?

Why does Pinduoduo support consumers to pay for your brand? Instead of a lower price?

…

What?

Are you willing to return 8 yuan of the 10 yuan earned by the brand to the platform?

…

That's another story, haha.$TENCENT(00700)$ $Alibaba(BABA)$ $Alibaba(09988)$   $JD-SW(09618)$  

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