Reborn in 2014, getting rich from the World Cup

"How much is the cargo?"

Xiao Guang asked in a puzzled tone.

Yang Zheng didn't answer directly, but instead asked, "Mr. Xiao, how long do you think it will take to develop through short videos and live streaming before we can transition into the e-commerce market?"

"Um……"

Xiao Guang pondered for a long while, and finally said, "That's hard to say."

This matter is indeed difficult for him to say.

But for Yang Zheng, there is a practical reference example for this matter - Douyin.

Douyin was founded in 2016.

Two years later, in 2018, it became an instant hit.

In the first half of the year, the number of daily active users exceeded 2.5 million, and by the end of the year, it exceeded million!

However, it was not until the end of 2019 that Douyin began to explore the e-commerce field and launched the short video sales function.

It was not until another year later, in 2020, that the e-commerce brand was officially launched.

Douyin is doing so well.

It took four years for the company to move from the short video track to the e-commerce field.

and.

The market share of China's e-commerce in the summer of 2023 is roughly as follows:

掏货：40%；金东：20%；拼夕夕：20%；斗音：12%；块手：5%；其他：3%。

Once this data came out, everything became clear.

The combined market share of the two major short video platforms is less than that of Pinxixi.

So if you want to build an e-commerce platform, do you even need to think about whether to follow the path of Pinxixi or Douyin?

Another point.

Following Pinxixi’s path, there is no technical threshold.

But Douyin, or the short video track, is different.

In the future, Douyin will be extremely popular, with a market value of trillions of yuan, becoming a new Internet giant.

The reasons are different.

But one thing is unavoidable - the super powerful recommendation algorithm.

Yang Zheng really has no idea how to deal with this kind of hard technical stuff now.

And if the algorithm technology does not keep up.

Let alone competing with Douyin in the future.

He might be crushed to death by a hand right now.

So Yang Zheng’s plan is to follow Pinxixi’s path and build an e-commerce platform.

As for the live streaming and short video tracks, we will wait until we have a certain number of users.

Build an Internet platform.

No matter what type of platform it is, users are the foundation.

Only with users can other possibilities emerge.

Yang Zheng did not tell Xiao Guang these things directly.

He simply asked, "Mr. Xiao, what do you think, given the current landscape of the e-commerce industry, even if we have a large user base, how much market share can we capture?"

Xiao Guang simply didn't say anything this time.

Because what Yang Zheng said was really heartbreaking.

Now, among the major Internet companies, which one has the largest number of users?

Of course it is Xiao Guang’s current club - Penguin.

What will be the fate of Penguin in the e-commerce field?

Clearing out the inventory and running away...

Even the person responsible for clearing the inventory was Xiao Guang.

How should Xiao Guang answer this question?

Of course, Yang Zheng had no intention of hurting him.

I just came to this point.

After he asked this question, he realized that it was indeed inappropriate to ask Xiao Guang this question.

So he didn't keep the secret and said directly:

"I believe Mr. Xiao should also understand that in the internet field, although the number of users is almost everything, there is also the question of whether they are accurate users."

"I came to your platform to watch live streamers sing, dance, or play games, but you suddenly pushed a bunch of e-commerce live streams to me. How can I watch them?"

"The majority of internet users are young people. Young people have a strong sense of self-awareness and hate being manipulated."

This is actually the main reason why Douyin and Kuaishou, although they have a huge number of users, are still less influential than Pinxixi in the e-commerce field - the platform positioning problem.

Douyin and Kuaishou are positioned as entertainment and leisure software.

Users come here to kill time and have fun.

And if you keep trying to induce me to spend money, I will definitely not buy from you.

Therefore, many internet celebrities with millions or even tens of millions of fans become unpopular as soon as they start selling products.

Some bloggers who regularly post videos and receive tens or even millions of likes.

After posting a video with an advertisement, not only did the number of likes decrease, but the number of followers also dropped.

Once you have users, there are other possibilities, but it doesn’t guarantee success.

Traffic is just the foundation.

How to monetize traffic is another question.

There were many internet platforms that were once very popular, but they could not find a way to make profits and were forced to transform, which led to user loss and gradually disappeared.

And there are countless such internet celebrities and bloggers.

Therefore, the issue of transformation is very critical.

Especially when switching from free to paid services, it can be said that there is a 90% chance of failure.

But the opposite is not the case.

It is positioned as an e-commerce shopping platform and offers some social and entertainment functions.

It is definitely less likely to encounter resistance than launching the former instead of the latter.

Xiao Guang has been immersed in the Internet field for many years. He doesn't need Yang Zheng to analyze these things in detail for him. He only needs a reminder and he will understand.

"So Yang always has other ideas?"

Xiao Guang paused for a moment and then asked.

Yang Zheng hesitated for a while, but decided to speak frankly.

Because Pinxixi’s operating model is essentially group buying and crowdfunding.

This concept is actually not new.

They already have a beautiful group.

The key to Pinxixi's rise lies in the fulfillment of consumer spending.

Since its establishment, Taohuo has been involved in counterfeit scandals many times and has been criticized.

In January 2015, it was directly criticized by relevant departments.

It points out that there are many problems with Taohuo, such as lax control of entry barriers, poor product inspection, chaotic sales management, and defects in the credit evaluation system.

So in June of the same year, Taohuo launched a vigorous anti-counterfeiting campaign.

A total of 24 low-end merchants were directly deleted.

In September of the same year, Pinxixi officially went online and took over the group of merchants who were eliminated by Duohuo.

In 2016, Taohuo closed another 18 stores suspected of selling counterfeit goods.

In 2017, another 24 suspected infringing stores were closed.

It can be said.

Pinduoduo's market share in the e-commerce field is handed over by consumers.

If you don't know this information and only have a "cut it off" operating concept...

"The group buying model? The essence is to attract customers with low prices, right? This approach has many problems, such as product quality issues, merchant profit issues, etc."

Xiao Guang said in a complicated tone.

Why could he think of these questions so quickly?

Because the Paipai.com he runs has actually used a similar model called "bargain hunting".

Users can select products, start group buying mode, and invite others to join the group.

Once a certain number of members are gathered, the products can be purchased at a low price.

How could he not know what problems might be in something he has already played with?

At that time, in order to ensure profits, merchants will sell inferior products as good ones and produce counterfeit and shoddy products.

This was also one of the reasons why Paipai.com was later shut down directly by Jindong.

But Jindong focuses on the high-end market, so of course it is afraid of being labeled as a counterfeit product.

The purpose of purchasing goods is to increase profits and upgrade the market.

But what if my main focus is on the lower-tier markets?

Just like Pinxixi.

How many people buy things on Pinxixi because of the product quality?

If it’s fake, you get three times the compensation, right?

I'll shoot four for you!