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Pindo gave birth to an e-commerce "pro son", what is the plan to play overseas this time?

time:2022-09-06 11:08:22 source: browse:111

Pindo is "hiding" too much. The company has been reported by the media to be in the cross-border e-commerce business. But Pindo has been incoherent, not commenting.

It was not until August 29th, when the 2 quarter earnings were announced, that Poundland CEO Chen Lei admitted for the first time that Poundland was doing overseas business.

The CEO just admitted in front of the foot, Poundudo immediately announced that on September 1, the full range of cross-border e-commerce platform Temu, the first stop in the United States, so that the world once again saw the "Poundudo speed".

What kind of participation can cross-border e-commerce sellers have? How much does Temu expect from this overseas project? What stage of development has the cross-border e-commerce industry reached? What does the real Temu look like?

Operation Research Society will take you to open the mystery of overseas Temu.

01Temu crosses the river by touching SHEIN

Temu is a cross-border e-commerce platform named Temu, whose logo features short skirts, wooden horses, high heels and bags.

Its official introduction reads: Temu will discover a wide range of global products at amazing prices, it will bring light to your life and help you live the life you want.
There are two important concerns, amazing prices and a wide range of global goods.

Let's start with the price, "10 billion subsidies" can be considered as the masterpiece of Temu, open Temu, a very obvious "20% discount" appears in front of you, now the goods on the shelves are mostly women's clothing, the price is in the range of 5 - 10 dollars, very tempting The wide range of global merchandise means that Temu has a wide range of products.

The wide range of global products means that Temu's goal is global, and North America is only its first step. The "more aggressive globalization" that Huang Zheng once talked about in an interview will probably be realized on Temu.

In terms of cooperation, Temu adopts a consignment model. After the sellers move in, they send their products to the platform for quality inspection, and after passing the inspection, the sellers will send their products to the designated warehouse. Subsequent logistics, operations, pricing and sales are all handled by the platform.

Carefully compared, from the interface, pricing, main products to business model, full of familiarity, living a new version of SHEIN.

Previously, there were media reports: Poundland threw out an olive branch to many SHEIN employees. Even in May, more than 80 supply chain employees were transferred to SHEIN's base in Guangzhou Panyu.
This is also in line with Poundland's usual style: learn from the mature path, blue out of blue, then better than blue. For example, we learn from WeChat small program group solitaire to learn from fast doughnut group, and learn from Xingsheng Yousei to learn from Duoduo to buy vegetables.

Temu is also presented in the form of "Website + App", and the App is a channel to invest more promotion efforts at the beginning, which is similar to Poundudo taking off with the mobile Internet.

Chen Lei, CEO of Poundland, emphasized the point when talking about cross-border e-commerce that Poundland sees opportunities in overseas business, but "will not simply repeat what others have done.

However, Poundland's familiar social play, such as the domestic "cut a knife", "spell a single", "pull new reward gold" and other play, because of foreign regulatory reasons, perhaps all can not take advantage of.

I don't know what kind of new game will be used in the U.S. market and what kind of waves can be made this time by the master of the game, Jindo.

02 How much do you know about seller bonuses?

After studying Temu's business plan, the Operations Research Society summarized the four current operating tendencies.

1) A lot of preferential support

It is reported that the investment, Temu also used the previous way to attract small and medium-sized businesses, giving " 0 yuan to move in, 0 deduction points " offer.

Generally speaking, the platform's investment in the early stage and support policy for merchants is also the most generous, so many cross-border e-commerce sellers have the vision to become suppliers of Poundland.

2) Diversified products and rich categories

Unlike SHEIN which focuses on fast fashion, Temu wants to be a comprehensive cross-border e-commerce platform with 21 first-class categories including apparel and shoes, bags and accessories, jewelry, mother and child products, children's toys, sports and outdoor, 3C digital, small home appliances, cell phones and accessories. And a store can sell multiple categories.

This is good news for sellers, a deep enough pool of goods, but also can accommodate more sellers, and higher development goals.

3) Strengthen quality control

This time, from the very beginning, Temu decided to strengthen the quality control. If a product has quality problems, the platform will impose a penalty of five times the fine on the merchant.

However, some sellers said that this penalty is actually very light compared to the 10 times fine of Poundland, which can also see Temu's tendency to attract more sellers in the early stage.

4) Settlement formalization

According to Hugo cross-border news, Temu currently only supports corporate public accounts collection, which means the need to file tax returns.
This is not good news for small sellers with low profit margins. Individual online stores on the Temu platform, although they also need to pay taxes, can greatly reduce tax costs through some compliance methods.

Overall, the current Temo is attractive to merchants, but not particularly different from other platforms.

Temo, which has always been "the first in the world", is actually late to the party in doing cross-border e-commerce.

The low price products on Amazon, Speedy, Wish are already a lot, and many products are on clearance at a loss, but no one wants them. Pindo's low price play is also used by other platforms to make a difference.

It is understood that many cross-border e-commerce players choose to wait and see, now cross-border platforms are springing up, choose the right platform for their own better development.

Temu is still in its infancy, and even if it is incubated by Poundland, it still needs to take one step at a time.

03Pingduo's overseas "genes"
Since this year, Poundland has done a "slimming down". According to Pindo's Q2 2022 earnings report, revenue for the second quarter was 31.44 billion yuan, up 36% year-over-year.

GAAP net income was 8.9 billion yuan, up 268% year-over-year, and Poundland has achieved four consecutive quarters of profitability.

According to Li Chengdong, an e-commerce strategy analyst and founder of Dolphin Intelligence.

This is the "saved profit", Predo no longer invest a lot of money to do business, tens of billions of subsidies and community group buying subsidies have been reduced.
The profit is saved, the sword is pointed out to the sea, Poundland seems to be really put together this time.

The investment market also seems to be very optimistic about Poundland, in the case of Chinese Internet companies share prices generally plummeted, Poundland bucked the trend and rose sharply. Especially since the last week, almost up 33%.

In many people's impression, Poundland has been a company rooted in China's sinking market, with a 68% share of agricultural products and FMCG products combined, and not much of a link to going overseas.

But in fact, Poundland's overseas gene is very strong.

Today Poundland's core team CEO Chen Lei and COO Gu Huren (who is rumored to lead Poundland's cross-border e-commerce) have both been involved in overseas business at the above companies. Among the first-level executives, Sun Qin, Lu Juanjun and others also came from the early outbound team. In 2018, Mochan launched the VOVA brand to the market, positioning it also as a full-category cross-border e-commerce (similar to Temu today), with the main market being Europe. in late 2019, VOVA was spun off from Mochan, with no more ties to Poundland, Lebei, or Mochan.
Second, as a former employee of Google, Huang Zheng himself had a deep understanding of multinational companies' 'localization'.

He once said: "Google gives me the opportunity to experience and understand the difficulties of foreign Internet companies in China and the competition with domestic Internet companies up close.
On one hand, it is difficult to get 100% trust and authorization from the company's headquarters across the space and cultural barriers.
Without sufficient trust and authorization, it is not easy to follow the rapid iterations of the market and to deal with all kinds of commercial and non-commercial, subtle rules of competition.
If the "gene" of going abroad is the understanding of overseas market, Jindo is not worse than other big manufacturers, or even better; but from the "software" and "hardware", Jindo has both advantages and disadvantages.

After going abroad, it is difficult for Poundland to get the soft support of domestic traffic, which is a major disadvantage, but in terms of hardware, Poundland is not disadvantaged at all.

Poundland has been deeply involved in domestic e-commerce for many years, and has a good relationship with all major industries in the country, and has a very cost-effective supply chain. Rich resources and data, in the selection of products and investment are much simpler. This advantage allows it to provide good quality and competitive products at low prices.

The other big advantage of Jindo to the sea is that Huang Zheng, who has a close relationship with OPPO founder Duan Yongping, has a large number of "sister companies" overseas. For example, the Southeast Asian courier "leading" pole rabbit, his founder Li Jie is also Duan Yongping's protégé.

In August, Hare Express and HNA Cargo signed a strategic cooperation framework agreement and launched Hare Wangbao, which focuses on small item delivery in Europe and the United States, adding to the layout of Hare Express in the logistics market in Europe and the United States.

In the chain of cross-border e-commerce, "logistics" is like the foot of "e-commerce", which determines how fast and how far the cross-border e-commerce can run. It is expected that the logistics will play an important role in supporting Poundland's overseas business.

04 Cross-border e-commerce from "blue sea" to "red sea

Around 2015, cross-border e-commerce was still a blue ocean, and most of the participants represented by SHEIN caught the wind and grew up in this period.

The domestic Ali, Jingdong and Byte have actually laid out their cross-border e-commerce business a long time ago.

Ali has Ali International Station, Sizzle, Lazada and other platforms for different groups, different countries and regions.

Jingdong has established the largest shareholder of TiKi, a Southeast Asian e-commerce company, as well as deep cooperation with Walmart in global e-commerce.

Fanno, a cross-border e-commerce platform owned by Byte Jump, has also made significant achievements in the European market with its "low price + subsidy" model.

During that time, the major cross-border platforms developed smoothly and quietly to make money.

But by 2021, the pattern has changed. Domestic major platform traffic has peaked, have targeted growth overseas, full steam ahead.

For example, TikTok has launched TikTok Shop globally; Ali has handed over the "integration" of its global business to Jiang Fan for unified management; Jingdong also upgraded its overseas business on June 18, setting up Jingdong Global Trade.

China's Internet majors are all going to sea, bringing unprecedented competition.

So, is the overseas e-commerce cake really so fragrant?

The answer is, it really smells good. Data from the U.S. Department of Commerce shows that as of May 2022, U.S. e-commerce sales in the past 12 months reached $975 billion, almost doubling compared to three years ago.

As foreign inflation continues to grow, so does the reliance on overseas goods (especially cross-border e-commerce from China).