Value Investing Comparing Alibaba, JD, and Pinduoduo |
- Comparing Alibaba, JD, and Pinduoduo
- Comparing Alibaba, JD, and Pinduoduo
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- Blackwell Capital - Presentation on Peloton Interactive
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- 2021 Annual US VC Valuations Report
| Comparing Alibaba, JD, and Pinduoduo Posted: 09 Feb 2022 05:20 AM PST We summarize and present each company side-by-side in this article for a business model and financial comparison, as well as discussion of future trajectory and challenges. Business Model and Overview In the following table, we provide a qualitative summary of each company's core business model, along with a snapshot of key e-commerce and financial statistics that are explored in subsequent sections below. We note that while JD and Pinduoduo are more or less entirely focused on the domestic Chinese e-commerce sector, Alibaba has a more diversified (albeit e-commerce dominant) business model where China retail commerce only accounts for 65% of the Group's total revenue (see here for further details). While it would be more accurate to evaluate Alibaba against its peers by zooming in specifically on the Group's China retail segment, such segment-specific data is not always readily available. For the purposes of this article, we include Group-level data as well as segment-level data where possible. We recommend referring to Alibaba (Part 3) for further information on Alibaba's segment breakdown. E-Commerce Statistics In this section, we focus on three fundamental e-commerce metrics: the number of annual active consumers (AACs) that make purchases on each platform, the gross merchandise value (GMV) of goods transacted via each platform, and the average GMV per AAC which captures the average dollar amount spent on a platform by each active consumer. Pinduoduo Has The Highest Number of AACs, But Can This Last? The number of AACs on Pinduoduo's platform has more than tripled over the 2017-2020 period to exceed JD in 2018 and Alibaba's China retail segment in 2020. Of course, as we have brought up previously in our Pinduoduo series, Pinduoduo has been relying heavily on various marketing strategies and particularly cash concessions (see Pinduoduo (Part 2)) to fuel user growth, and the question still remains as to how effectively Pinduoduo will be able to retain users once the platform cuts down on such incentives. Alibaba's Strategy of Targeting the Average Consumer Seems To Be Winning Alibaba outshadows its competitors in terms of both the total GMV transacted by users and the average GMV spent per active consumer. In 2020, the total GMV transacted on Alibaba's China retail platforms...read more here Full article link: https://www.investorinsights.asia/post/comparing-alibaba-jd-and-pinduoduo [link] [comments] |
| Comparing Alibaba, JD, and Pinduoduo Posted: 09 Feb 2022 05:03 AM PST |
| Posted: 08 Feb 2022 10:43 PM PST |
| Lacy Hunt: Despite Current Inflation Fears, Deflation Is Still The Bigger Threat Posted: 08 Feb 2022 04:43 PM PST |
| Blackwell Capital - Presentation on Peloton Interactive Posted: 08 Feb 2022 05:50 AM PST |
| NVIDIA and SoftBank Group Announce Termination of NVIDIA’s Acquisition of Arm Limited Posted: 07 Feb 2022 11:33 PM PST |
| 2021 Annual US VC Valuations Report Posted: 08 Feb 2022 12:34 PM PST |
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