The nasdaq bell ringing ceremony is only held in the major global events. The nasdaq bell ringing ceremony in the United States is regarded as the peak moment of an entrepreneur's life. Among the Internet makers in hangzhou, ma yungan and ding lei have done it;both individuals are leaders in the industry.

Pinpinduo will be officially listed on nasdaq, and Huang Zheng will hold a bell ringing ceremony in lujiazui, Shanghai, through the remote opening bell ceremony on July 26 U.S. time.

Someone asked who was huang zheng? Have you heard that song in the building elevator”pin duo duo,pin de duo,sheng de duo”?

His company's hit song is a brainwashing commercial.

In early 2018, pinpinduo completed a $3 billion financing led by tencent, which is valued at $15 billion. Third-party institutions expect that the IPO market value of pinduoduo will be between $20 billion and $25 billion.

Its founder, Huang zheng, holds 50.7% of the company's shares and is an absolute majority shareholder, according to its prospectus. Tencent is the second largest shareholder, with 18.5 per cent.Gaorong capital accounted for 10.1 per cent of the shares, while Hongshan capital accounted for 7.4 per cent.

Let's assume that final IPO market value will reach $25 billion, and the value of Huang zheng can reach us $12.6 billion, equivalent to RMB 8.00 billion.(sina stock note: the latest news, the IPO price of pinpinduo is set at $19 eventually.)

And this process, it took 10 years for jd, 8 years for VIPSHOP and five years for taobao, and it only took two years and three months for pinpinduo.

Huang zheng: excellent students who choose to start up bisness

Huang zheng, 38, was born in hangzhou and entered the prestigious Hangzhou Foreign Language School at the age of 12. After graduation, he was directly recommended to zhu kezhen college of zhejiang university, majoring in computer science. In the four years of zhejiang university, huang zheng became a prominent figure in the school,which is regarded as good student by teachers and legend by bro junior,so that the IT people outside the school had heard of him.

In 2002, Huang zheng was about to graduate from zhejiang university and study in the United States. At that time, Wangyi CEO Ding lei also took the initiative to contact Huang zheng, hoping to help him solve a technical problem,for he saw an article published by Huang zheng online. Finally the tech problem was successfully solved with the help of Huang zheng. This time the story of the younger generation helping the elder generation made Dinglei remember Huang Zheng.

To appreciate Huang zheng’s helping,Ding lei introduced an 82-grade senior student of zhejiang university named Yongping Duan to Huang zheng.

Who is Yongping Duan?Both BUBUGAO and XIAOBAWANG were his top works.When they met, Yongping Duan was highly impressed by Huang zheng, who was already studying in the United States at the time and was studying for a master's degree at the university of wisconsin-madison, the eighth largest university in the world.The first time they met, they had a good talk.

Yongping Duan became the first Chinese to do so in 2006, when he paid $620,000 for the “lunch” with Buffett.But many people maybe do not know that Yongping Duan had taken a 26-year-old man who was Huangzheng.Huang zheng also told the media explicitly: "The Duan has a great influence on me.Mingyong Chen (founder of OPPO) is the big disciple, Shen wei (founder of Vivo) is the second disciple, and Zhijiang Jin(CEO of bubugao) is the third disciple.I am the fourth disciple of the next generation.

Since he started his own business in 2007, Mr. Huang has been involved in e-commerce for four times.First, he set up LEQI to help taobao or jd.com develop market services.He later founded a gaming company that offers role-playing games on the WeChat platform.

It is the fourth business of Huangzheng that the combination of e-commerce needs and game experience,which gives the birth of Pinduoduo.Chinese two Internet giants,tencent and alibaba.They monopolize social and e-commerce businesses,but they are isolated from each other, with little interactivity.Pengduo skillfully integrates the advantages of both parts, and integrates e-commerce into WeChat program. The previous game start-up experience of Huangzheng was applied to the development of Pinduoduo,which makes people’s shopping more interesting.

How does "Pinduoduo" become hot

The development of Pinduoduo can be divided into three stages:

The first stage:Pinhaohuo、Pinduoduo Exploration Phase.One self-management,one platform,till the two merge.

The second stage: the outbreak stage.In 2017, it will be a comprehensive platform and launch online promotion services. 99% of Pinduoduo income relies on this promotion service, similar to clean out treasure to train.

The third stage:Nationwide online shopping platform,sponsor a large number of variety shows, single month GMV over 10 billion.

From the progressive stage, the user group of Pinduoduo is also expanding upward, from the group people that only focuses on price itself to the engagement of acquaintances within WeChat group. There are mainly three types of participants:

In the past, e-commerce was weak and socializing was strong.Pinduoduo builds the scene of the electric shopping mall with strong relationship through putting together the order, which makes people with the same demand gather together, or using an acquaintance to bring the item in to find their own flow breakthrough point to create hot style.

Lots of hot styles of Pinduoduo are also very tendentious.First of all, the price of such goods is more important than the brand. Secondly, they can influence purchase behavior through acquaintances, such as fresh food and daily necessities.There is a very low threshold for carrying these items. They do not need to be web celebrity. Your family and friends can invite you to join them.From the beginning of fruits, Pinduoduo continued the characteristics of putting together the orders of excellent goods and had fission growth on WeChat.

Pinduoduo is controversial.It has grown too fast with lots of accusations of co,unterfeiting and consumer degradation.Although the online business pattern has been recoginzed by everyone,it took three years to complete the road to the market.The brutal growth period of the Internet is always accompanied by scolding and slots. The more people swear, the more users it proves.So did Taobao.Anyway,it is truth that Pinduoduo is a strong company with 300 million users and 100 billion GMV.

How does "Pinduoduo" continue to grow

The current IPO valuation of Pinduoduo is not cheap. Therefore, maintaining high growth is very important for Pinduoduo, which may come from three aspects: 1) retention and innovation; 2) improve guest GMV; 3) improve commercialization capability.

According to the survey of Jiguangda data, in the second half of 2017, the 7-day retention rate of Pinduoduo was 76.9% on average, which was in the leading position in the industry. However, its monthly reinstallation rate was 19.9%, which was a large gap compared with 46.7% of taobao, which also lagged behind 29.9% of jingdong.

As an emerging e-commerce platform, this retained data is very good. It can be inferred that among the typical users obtained from WeChat, the low-cost strategy is still effective in retaining price-sensitive users. As China is still a developing country, the economic distribution is extremely uneven, and the core price-sensitive user groups with many efforts still have great penetration value.

According to the Jiguang data survey, the total retail sales of consumer goods in China in 2017 was about 36.63 trillion yuan, of which the online retail sales in China were about 7.18 trillion yuan, accounting for about 19.6 percent.In absolute terms, consumers who are not online still account for the majority.It is reasonable to believe that the vast majority of these groups are not consumers above the third-line, and the majority of consumers are price-sensitive, which is still of great penetration value for douduoduo.

Since the middle and late 2017, Pinduoduo has started to offer TV variety shows and roadside billboards, which is also to effectively reach more offline consumer groups.But all the wealthy e-commerce companies are doing it in the same way, increasing user coverage while dramatically increasing the cost of customer acquisition.

According to the prospectus, from 2017Q1 to 2018Q2, the annual consumption amount of each active buyer is RMB 308.7, 385, 449.2, 576.9, 673.9 and 762.8 yuan.

However,according to alibaba FY2018 earnings (note: alibaba FY2018 corresponds to cy2017.4-2018.3), the annual consumption amount of each active buyer is 8,732 yuan, and that of jingdong FY2017 is 3,107 yuan. This comparison not only confirms the "low price" of Pinduoduo, but also makes us think about how to improve single-guest GMV.

The predictable path to increase customer unit price and single customer repurchase rate is: 1) increase merchant scale; 2) Eliminate the fake label and raise the reputation.

According to the prospectus, as of 2018Q1, Pinduoduo had more than 1 million merchants and nearly 10 million taobao sellers.Obviously, as a platform, there is a lot of room for taobao to increase the number of merchants.The most important thing, then, is how to bring in better quality merchants and change the image of fake goods.If the low price strategy continues, it is inevitable that "bad currency drives out good currency", making the real quality merchants dare not enter.Another argument is that once Pinduoduo gives up low prices,What's the difference between Pinduoduo and taobao?

Reservations are required. We have had Taobao and we don’t need another Taobao.If offline users' online shopping habits once formed, they can be easily attracted to taobao.

On the other hand, C2B mode is mainly used at present. Will it develop to C2M mode? Which is the main mode of ”Yanxuan” and “Youpin”and other emerging e-commerce, whose core advantages directly directed to manufacturers, so that the limited SKU demand can be widely distributed, the product line is reduced, the intermediate links of agent distribution and supply chain are removed, and the cost is reduced, thus making the commodity price competitive.

The most important is that the C2M model shares profits with manufacturers, which can provide more commercial options for Pinduoduo.However, in practice, both “Yanxuan” and “Youpin” are self-operation,with independent integration of supply chain and inventory.However, Pinduoduo,as a platform,without stockpiling, without involving in the supply chain, the quality of goods cannot be effectively guaranteed in practice.If pengduo really wants to move from low price strategy to value,the entry of manufacturers will be again faced with”Yanxuan”, xiaomi and other vigorous competition.