On October 9, Alibaba announced on the same day that it reached a strategic cooperation with Shanghai that it would open its first offline "1 yuan experience store" in Shanghai, and denied that this move was a benchmark for Pinduoduo.
Ali’s move is regarded as a new move by the outside world to declare war on the country’s largest “10 yuan store” MINISO. From Hema’s high-end member store to the street 1 yuan store, Ali hopes to achieve big and small under the banner of “new retail” eat. However, it is worth noting that the market does not seem to recognize Alibaba's decision to turn around and declare war on MINISO. Therefore, Pinduoduo, which originally competed with Alibaba online, unexpectedly became a beneficiary stock. After the U.S. stock market opened that day, Shanghai's largest Internet company, Pinduoduo, which took the ultimate cost-effective route, rose 8.35%, and finally closed at $79.54, an increase of 8.35%, the largest single-day increase since June. On the same day, Alibaba's share price turned from a rise to a fall. According to the materials disclosed by Foxconn that day, Guo Taiming directly sold half of Alibaba's shares at a high level.
▲From the cover report of the June issue of "Chinese Entrepreneur" in 2018, "Ali continues to advance with leaps and bounds. How does CEO Zhang Yong become Jack Ma's confidence? 》
An Alibaba and Pinduoduo dual-line investor said that Xiaoyaozi, the "top leader" of Alibaba Group, had already solemnly announced when talking about Pinduoduo in an interview with the media, "I have been telling the team that we cannot go back. A pair of daily-disposable shoes is sold for three bucks and free shipping.” (Note: from the cover report of the June issue of Chinese Entrepreneur in 2018), so Ali’s plan to open a “1 yuan experience store” is definitely not for Pinduoduo. of. But under the current competitive situation, the capital market is concerned about the actions of Ali and Pinduoduo. If one of them is not satisfied with the actions of one of them, the stock price will fluctuate one after another.
The above-mentioned investors said that from the results, Alibaba regards Pinduoduo as an important competitor, and many strategic decisions have obvious defensive signs, including following Pinduoduo’s tens of billions of subsidies and launching the C2M business unit to benchmark Pinduoduo. New brand plan and so on. But for the real "new species" of Meituan, Pinduoduo, MINISO, and old rival JD.com that have emerged in the new retail sector, everyone is also judging that Ali offers "choose one of two" on Tmall, Juhuasuan, Feizhu , Are you hungry, "Ten Billion Subsidy", special edition, 1 yuan shop… and other actions are really effective
"In fact, traffic thinking and price thinking have become exclusive to traditional e-commerce." He believes that the focus of new species is not what threats and harms they pose to traditional e-commerce, or how traditional e-commerce intends to fight back in public relations, but how consumers’ behavior and habits are changing and how To adapt to the above changes, what value thinking should be used to apply to business competition. For example: In a food delivery campaign that Ali regarded as "sixth floor hits second floor", Meituan, which was defined as "on the second floor", won a complete victory, occupying most of the market share, and its market value has risen by more than 200 billion US dollars. It was also on October 9th that Meituan issued a letter for all employees on the intranet, and abandoned the HR organization system that followed Ali's definition of employees as "P" (professional sequence) and "M" (management sequence).
▲Previously, Ye Guofu, the founder of MINISO, had a famous dispute with Jack Ma.
MINISO also responded quickly after Alibaba announced the opening of the store. On October 10, MINISO updated its prospectus and plans to sell 30.4 million ADS shares, priced at a maximum of US$18.5 per ADS, which is equivalent to raising US$100 million in September to a maximum of US$647 million.
Prior to this, Ye Guofu, founder of MINISO, had a famous dispute with Jack Ma. Ye Guofu said, “Ma Yun’s stake in Suning still cannot change the fate of Suning today’s more salespeople than customers; Jack Ma’s stake in Shanghai Bailian has no meaning other than raising a few stock daily limits.”
Regardless of the outcome of the new retail battle between Alibaba and MINISO, Pinduoduo unexpectedly became a beneficiary stock, proving that the capital market undoubtedly has more attention and scrutiny on the strategic actions of e-commerce giants.
“Originally, I was looking forward to the PC Internet giant’s response to the challenge of the new mobile Internet e-commerce. At this time, the challenged party turned to grab the 10 yuan store business offline. It’s a bit like when everyone is in a drone battle, one of them suddenly Said to train cavalry troops," said the above-mentioned investor.