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What's the story behind Temu? They bought 3 ads during the Super Bowl and moved up one spot in the app store rankings. How does a 'new' company afford to do that? Temu is part of PinDuoDuo - the massive social commerce company/app from China. I've been familiar with PDD for some time but never realized that Temu was under their umbrella. πππ πππ ππ ππππ? Temu is part of PDD's international expansion efforts, so far they've: β’ Launched in 40+ countries β’ Spent $2 billion in marketing β’ Have 63.7 million US users (as of November) ππππ ππ πππππππππ? Originally launched in 2015, PDD has reinvented the ecommerce/social commerce space within China. So much so, their valuation has surpassed that of Alibaba, making it the most valuable U.S.-listed Chinese company. Their founder is now the second richest person in China. But, what's so special about PDD? What makes 'just another' ecommerce platform unique? There are three key points of differentiation πππ 1. ππ¨ππ’ππ₯ ππ‘π¨π©π©π’π§π The core of Pinduoduo's success lies in its team purchase feature, encouraging users to form groups for purchases. This fosters social interaction and drives down prices, making products more affordable and accessible. The platform integrates e-commerce with social networking, leveraging the connectivity of platforms like WeChat. By integrating with social media platforms Pinduoduo is able to grow organically via traffic driven by social/referrals. 2. πππ¦π’ππ’ππππ’π¨π§ Pinduoduo gamified much of the shopping experience - you can earn discounts by sharing discounts. BUT, it also literally incorporated games to increase the stickiness of the platform. There's a game, Duo Duo Orchard, where participating in platform activities rewards users with real world points that can be used towards purchases. 3. ππ’π―π-πππ«πππ¦π’π§π Incorporating live streaming (not unlike what we're starting to see within TikTok creates a more dynamic shopping environment where users can interact with sellers in real-time. It adds an entertainment layer to e-commerce but also allows users to ask questions, see what a product is actually like, etc. ππ‘π’π§π & ππ¨ππ’ππ₯ ππ¨π¦π¦ππ«ππ You can draw a lot of parallels between PDD + Temu and Bytedance (w Douyin) + TikTok. PDD integrated social, gamification, and shopping to create a new ecomm experience. Douyin/TikTok unbundled the social graph (making content interest based vs connection based) to create a new social media experience. Additionally, Bytedance spent heavily to enter into the US market (estimated $1 billion ayear). Once it had traction it expanded its feature set drastically - mirroring a lot of the features that made Douyin so unique (like live shopping). If Temu goes mainstream here, I'd imagine a similar approach - slowly adding more of what makes PDD so sticky (ie more gamification and social shopping features added). In China, social commerce has witnessed significant growth over the past 5+ years. Live commerce, in particular, emerging as a major driver of spontaneous purchases. So far, China has been the tip of the spear on this front and I see no reason why these features don't see mainstream success in the states (whether via PDD/Temu) or some other app. Curious what others think? Any reason it won't have the same level of success here in the US? #socialmediamarketing #superbowlcommercials #temu #socialcommerce
Duration: 74 sPosted : Tue, 13 Feb 2024 20:11:43Views
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