First of all, behind the 500 million users in Pinduoduo, there is a high subsidy loss. In recent years, Pinduoduo has changed from a small e-commerce enterprise to a well-known shopping platform in China, which is behind the great success of marketing promotion. But in recent years, Pinduoduo has also suffered huge losses due to marketing. From the activities in Pinduoduo in recent years, we can see that there are tens of billions of subsidies for inviting people to bargain, and many activities on the platform have attracted many shoppers. To this end, Pinduoduo invested huge sums of money in marketing, expanding the user groups and quantity. More and more users have brought huge income to Pinduoduo, even exceeding the previous marketing cost. However, in the later period, the huge marketing cost in Pinduoduo continuously aggravated the company's capital crisis, and the income gradually failed to meet the marketing expenditure, which led to a sharp increase in the number of users in Pinduoduo in recent years, but the income was decreasing or even losing money. Secondly, the purpose of Pinduoduo now is not revenue but cash flow. My personal opinion is that many companies are losing money now, but they have been operating, especially internet companies. For example, we are familiar with the gym or Bi Li Bi Li, both of which rely on cash flow to promote the development of the company rather than profit. Because the current market competition is so fierce, enterprises must always fight a protracted war if they want to survive. How to fight a protracted war requires the role of cash flow, relying on continuous financing to revitalize the company's operations until the company dies, so as to win unilaterally.
Finally, the loss of many products is only expected, and the future is the future of many products. Pinduoduo, like the national economy, has been growing at a high speed in recent years, but the high-speed growth has reached its peak. Pinduo is undoubtedly taking this road. Therefore, Pinduoduo's loss is only temporary, which does not mean that Pinduoduo will not make a profit in the future. Pinduoduo's future is to seize users to expand and then defeat other e-commerce platforms. This is his ultimate goal. Now the loss is just a process of accumulation.
If there are any omissions, please add them.