---
title: "How to Become a Localized Pinduoduo?"
description: "Pinduoduo grew from monthly sales of less than a few million to over ten billion in less than three years. Behind this transformation, Dong Ge identifies three key factors: social traffic diversion, consumption downgrade, and community marketing fission."
author: "任小东"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2018-04-16"
language: "en"
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---

# How to Become a Localized Pinduoduo?

> Pinduoduo grew from monthly sales of less than a few million to over ten billion in less than three years. Behind this transformation, Dong Ge identifies three key factors: social traffic diversion, consumption downgrade, and community marketing fission.

Pinduoduo grew from monthly sales of less than a few million to over ten billion in less than three years.
What is behind this transformation?
> Dong Ge has three conclusions:
>
> 1. Social traffic diversion;
>
> 2. Consumption downgrade;
>
> 3. Community marketing fission.

**First Conclusion: Social Traffic Diversion**
From the current perspective, the social traffic leveraged by Pinduoduo is terrifying; otherwise, JD and Taobao wouldn't be so anxious.
Of course, credit also goes to Father Tencent. Three-level fission in Moments is blocked everywhere, but Pinduoduo is favored exclusively. If it weren't a biological son, this wouldn't be possible.
WeChat Internet brings huge traffic, and Pinduoduo uses it best.

**Second Conclusion: Consumption Downgrade**
Those ordinary urban aunties, small-town aunties, and people aged 45-70 who are new to WeChat represent a huge demographic dividend and mobile internet dividend. Last year, when I went home for a family gathering, I saw relatives of grandpa and grandma level happily grabbing red envelopes, sharing chicken soup articles, and playing games. When our enterprises shift their gaze from first-, second-, and third-tier cities to fourth-, fifth-, and sixth-tier ones, you'll discover new blue oceans and opportunities. Kuaishou rose this way, and Pinduoduo also rose this way. Can B2B e-commerce sniff out any opportunities from this?
The "market sinking" approach used in FMCG can be borrowed.
Of course, the concept of ordinary aunties and small-town aunties here is not just geographical.
It's more about social circle attributes.
Are there no such people in first- and second-tier cities?
I think there are many. Many cities have done well with localized group-buying social e-commerce, growing from less than 100 million to 1 billion in scale. Due to corporate confidentiality, I can't name this company for now, but its approach is worth learning from for many localized B2B enterprises.

**Third Conclusion: Community Marketing Fission**
Now is the era of community economy, and probably no one opposes that, but not many play community marketing well.
Dong Ge summarizes three ways to play community marketing:
> 1. C2B model standing from the perspective of brand enterprises;
>
> 2. Communication model standing from the perspective of brand enterprises;
>
> 3. Transaction model standing from the perspective of all enterprises.
Dong Ge has dedicated articles on the first two, so I won't chat about them here. Today, I'll focus on the group-buying model in the transaction model.
Pinduoduo is a typical group-buying, but its group members are nationwide.
What I want to share today is a localized group-buying approach.

**Case:** Through this approach, a certain enterprise's traffic sources grew from less than 60 to over 1,500, equivalent to having 1,500 communities, driving transaction volume to 1 billion yuan in just 2 years. The main products are daily fresh produce and daily necessities for urban households.
Isn't this worth learning for many regional B2B enterprises?
Currently, many regional B2B platforms, after connecting small B ends, still lack stickiness and have poor new product promotion capabilities. If they strengthen B2C social e-commerce operations, I believe this is a huge dividend and opportunity. Capital will look more favorably, store stickiness will further increase, and profitability and new product promotion capabilities will be strengthened.

**The Logic Behind It:**
> 1. Stores serve as traffic entry points, with store owners as group leaders, conducting group-buying operations. The data I've seen shows that stores as group leaders earn monthly commissions of 2,000-5,000 yuan. Do you think stores are interested in doing this?
>
> 2. Extreme profit distribution: Users enjoy cheap goods through group buying, group leaders receive a certain percentage of commission for traffic diversion, and platform owners prepare pre-sales and inventory in advance.
>
> 3. Platform owners handle platform operations and supply chain operations.
>
> 1) Platform operations: The technical architecture is not traditional transaction mode but social mode, architected around "users."
>
> 2) Supply chain should be separated, starting with bestsellers in fresh produce and daily necessities.

**Summary:**
1. Group-buying and benefit-sharing models are the foundation of consumer-side community marketing, conforming to the "social currency" principle.
2. The essence of community marketing is circle marketing; finding forms that appeal to the "circle" is the operational technique.
3. Teacher Zhao Bo from New Distribution said: B2B platforms are infrastructure, and we should focus on infrastructure.
4. Dong Ge of "Omni-channel Marketing" said: Community marketing helps B2B platforms empower stores. The so-called internet thinking is to "connect, integrate, symbiosis, co-create, and fission."
Every industry can be redone with internet thinking!

**Ren Xiaodong:**
Partner of New Distribution
Well-known FMCG B2B e-commerce expert & FMCG marketing expert, a veteran marketer.
Former Deputy General Manager of Lakala E-commerce, General Manager of Community and E-commerce at Xianyu Technology, Vice President of Brand Marketing at New Gaoqiao Network.
Author of the community marketing chapter in the monograph "Triggering Demand."
In 2015, proposed the concept of "Three Degrees of Fan Marketing": "Online three degrees of fan marketing, offline three degrees of distribution."
In 2018, proposed the concept of "Omni-channel Distribution," advocating the establishment of digital distribution service networks for enterprises.

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