Ping Duo Duo closed up 9.02 per cent at $41.23 on Thursday, beating the market value to $48.3 billion. Earlier today, before the Spring Festival mobile phone Taobao will be online new version, after the revision of the “ten billion subsidies” will be from the mobile phone Taobao “core seven palacegrid” one of the collection of a separate, upgraded into a mobile phone Taobao first-level entrance, and after the “10 billion subsidies” occupied the entrance area or will exceed the existing settlement cost-effective.
Choosing to go online before the Spring Festival “10 billion subsidies” first-level entrance, Ali wants to convey the message is obvious. With the Spring Festival as a key node to continue to seize the sinking market, Ali’s ambition is self-evident.
In June, Ping Duo duo launched a “billion subsidy” in its first mid-year push to join the e-commerce platform, selling more than 350,000 iPhones in the entire 618 period. Just the past three quarters of the financial results show that Ping Duo Duo “10 billion subsidy” entrance of the daily living users have passed the 100 million mark, participating in the program of domestic and foreign brands more than 2,800, more than 23,000 popular subsidized goods.
The sweet-smelling Ping Duo did not stop, and at the earnings conference, Huang said that “10 billion subsidies” is not a slogan, every penny spent is worth it, the next quarter will continue the “10 billion subsidies” strategy.
Although the “billion subsidy” was the first of Ping Duo’s duo and is applying for a trademark, this marketing strategy has been adopted by various home appliance platforms over the past year. In particular, the deal, which starts at 99 to double 12, means more and more to the standard Ping Duo Duo.
However, there is a U.S. equity investment fund manager analysis, which shows that in the face of Ping Duo Duo’s $10 billion subsidy program, Taobao has not yet come up with a more effective countermeasures, but in the brand’s mind want to first shout out to follow, and then consider other competitive options. But unlike Taobao, Ping Duo’s $10 billion subsidy does not currently limit its merchandise. Taobao’s 10 billion subsidy follow-up strategy, and Ping Duo will also benefit from the brand’s mental sense.