Many people believe that Pinduoduo is very unfriendly to brands, even anti-brand. I have been thinking about this issue and will share my understanding today.

My understanding mainly comes from answering two questions to reach a straightforward conclusion.

1. Why do brands exist?

What role have brands played throughout history?

A trustworthy mass-market brand represents strong product quality and excellent after-sales service.

In a commercial society transitioning from chaos to order, trustworthy brands are like bright pearls in the dark, reducing transaction costs and increasing transaction speed and frequency.

Why do many excellent brands expand from a single product to diversification?

"Today we cheer for the Monkey King because the demons have returned."

Take Xiaomi, for example. Founded just over a decade ago, it has ventured into almost every industry.

Xiaomi does everything because the people need it.

Some industries are too profitable. Buying Xiaomi may not always be the best deal, but at least you won’t get scammed.

For society as a whole, the core value of brands is to reduce transaction costs.

Because they reduce transaction costs, people are willing to pay extra for brands.
 

2. Why do platforms exist?

What is the value of platforms like Pinduoduo and Taobao?

Is it just about moving offline supermarkets online? Obviously not.

They exist to reduce transaction costs and facilitate better matches between buyers and sellers.

In this regard, the value of platforms conflicts with that of brands. But compared to the self-imposed moral constraints of brands, platforms can undoubtedly go much further down this path.

Let’s revisit our earlier statement:

"A trustworthy mass-market brand represents strong product quality and excellent after-sales service."

Why does Pinduoduo enforce such strict after-sales policies? It’s essentially leveling the after-sales value inherent in all brands.

Perhaps in the public’s perception, Brand A has better after-sales service than Brand B.

But as long as both sell on Pinduoduo, their after-sales service is equally good. This is the new perception Pinduoduo instills in users.

Why is Pinduoduo so obsessed with low prices? Because we can’t discuss product quality without considering price.

If Brand A and Brand B offer the same after-sales service and their products are indistinguishable,

but Brand A is cheaper than Brand B, then Brand A represents advanced productivity.

Platforms exist to promote advanced productivity.
 

3. Is Pinduoduo anti-brand?

So, to answer today’s question: Is Pinduoduo anti-brand?

I’d say Pinduoduo is a touchstone for brands. It doesn’t oppose brands, but it tests them.

In the commercial world, how much you earn depends on whether you have pricing power, which stems from differentiation.

The more unique your product or service is, the more valuable your brand becomes—just like Apple.

In an era of increasingly robust infrastructure, every brand must ask itself: What differentiated value do you provide?

Emotional value counts too. The key question is: Do you have any?

Customer service responds in three seconds;

Logistics are handled by the big four;

Returns are accepted within seven days;

Products are all OEM’d in Yiwu;

...

Ask yourself: What value does your brand offer?

Why should consumers pay extra for your brand?

Why should Pinduoduo support consumers paying more for your brand instead of opting for lower prices?

...

What?

You’re willing to give $8 out of every $10 in brand revenue back to the platform?

...

Well, that’s another story. Haha.

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