Xin Xilan answered in one sentence: Selling vegetables is just a "cover", the Internet giants are competing for traffic and the sinking market! First, Pinduoduo’s success outside of the five areas proves the potential of sinking the market

Pinduoduo was founded in 2015, but now it is among the top three in the Internet industry. And it has become a "thorn in the side" of giants such as Alibaba, Tencent, and JD.com. Pinduoduo started by selling agricultural products and has reached a trillion-dollar scale. The annual transaction volume in October 2020 alone reached 1,457.6 billion yuan. However, he did not seize the first- and second-tier markets. His user groups are people who have no money or live on a budget. But relying on these people, infinite power exploded. In this market, which giant is not jealous?

Pinduoduo, which started selling agricultural products, secondly, selling vegetables is actually a battle for traffic

Li Xueqin has a famous saying, "The end of the universe is Tieling", and Xin Xilan wants to say : The end of fresh food e-commerce traffic is WeChat. The Internet giants are burning money and subsidizing regardless of the cost in order to seize the user traffic pool. I have said in many videos that selling vegetables eventually turned into a traffic war, and the giants suffered from "traffic anxiety." For example, in community group buying, the transaction is ultimately completed on WeChat. Although Tencent does not have its own community group buying track, it has invested in Xingsheng. The future of retail is actually social retail. If we can leverage WeChat’s traffic pool, this is of course what the giants are willing to do. Since it’s impossible to develop a social APP head-on, it’s always possible to “find the country through curves”, right? Third, the fresh food market is the next trillion-level market

When Hema Fresh was first established, it targeted high-end people. The seafood and other agricultural products inside are sold at extremely high prices, but there are still people buying them. In 2020, community group buying was fined several times for low-price dumping, which actually shows a problem. There is no small matter in Cai Lanzi. The fresh food e-commerce companies that have survived to this day have all received multiple rounds of financing. Is capital dumber than us? Are capitalists dumber than us?

An epidemic in particular has taught us a lesson, and food safety has received unprecedented attention. More and more people pay more attention to eating well, eating healthily, and eating happily, rather than simply solving the problem of food and clothing. A few days ago, several fresh food e-commerce companies were rumored to be listed. This once again proves that the fresh food market is profitable.

Summary: In fact, these big guys understand the significance of fresh agricultural products to fresh food e-commerce. It is not only about the traffic value of rigid needs, high frequency, and repeat purchases, but also about the mental occupation of users in sinking markets. In other words, these giants may not even intend to make money from fruits and vegetables.