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While picking up \"shards of youth\" at the memory-filled New Year's Eve party at Station B, many were surprised to find that, at a time when long video platforms such as Youaiteng were losing money and struggling with the cost of high copyright content, the former \"small break-out\" had quietly completed a breakthrough, gradually breaking the circle, appearing in a unique posture in the public view, no longer a sub-cultural community confined to the second-tier field.


This is a somewhat surprising finding, and a reminder of the fact that at the time of the official start of the 1920s, it is more important to focus on the smaller giants that have maintained their rapid growth in the midst of the economic winter like station B – a size that may not be large, their business models may have been in doubt, but they have been quick and rapid, with a series of moves, such as listing, business expansion, and market expansion, in the last two years, and gaining wider recognition.


Along with station b, the \"small new giants\" are pinduoduo, which has risen nearly 70% in a year-and-a-half, with a market capitalisation of nearly $50 billion, and lightning's flotation after 19 months and a rise of more than 80% in half a year. The companies can be referred to as \"PBL \"(Pinduoduo, Bilibili, Luckin), according to the Internet industry's naming habits.


Don't rush into retorting – the Internet is keen to make words, but it must be admitted that the words that have been coined out of thin air do exactly describe a cross-section of the industry.


For example, the ancient \"BAT \"(Baidu, Alibaba, Tencent) laid the basic pattern for the Internet industry, and the later\" TMD \"(byte beat, Meituan, Didi) summed up the demographic dividend will be the Internet industry entrepreneurship cap.


In October 2019, the top three Internet companies changed again, and Meituan officially became the third-largest Chinese Internet company by market value after Ali and Tencent. Meituan's market capitalisation at the time was about $65 billion, a far cry from the hundreds of billions of dollars that have been built by Ali's Tencent, but there are still those who believe that \"ATM\" can be used to sum up the top three in the current Internet industry.


The significance of PBL is that the story of the rapid growth of the three small giants in the past year or two can tell us how to find a remote path to cut into the seemingly established industry, open a hidden market, and successfully occupy the market.


In response to live questioning at the 2019 Tiger Sniff FM festival, former Alibaba CEO and founder of the Kadoorie Fund, Wei Zhe, said his mother, who had rejected e-commerce in the past, also started online shopping because of pinduoduo. Mr pinduoduo's contribution, he argues, is to \"socialise the last people in china who don't need e-commerce.\"


But when these people step into the door of the e-commerce world, how can they not go to other e-commerce platforms? To this end, pinduoduo in 2019 continues to pull new and retain kung fu.


In June, pinduoduo officially launched a \"billion-billion-dollar subsidy program\" that includes digital, cosmetic, mother-and-child categories, including apple, dyson, bose, sony and so on.


From agricultural products such as low-priced high-frequency rigid demand category to digital high-priced low-frequency, focus on brand and quality products, pinduoduo's intention is obvious: to attract the \"five rings\" of the crowd, with JingDong, Ali and other opponents to fight.


The impact of the campaign is that \"billions of subsidies\" have become a key word throughout the year. Rivals such as JingDong, Su Ning and Ali have labeled their festivals as \"tens of billions of subsidies,\" fighting pinduoduo with ultra-low prices and cash subsidies.


Unlike their competitors'participatetic actions, pinduoduo's \"billions of subsidies\" became a day-to-day activity. After the new iPhone 11 series went on sale in September, pinduoduo once again became a hot topic at ultra-low prices.


According to pinduoduo's earnings report, as of september 30,2019, the platform had billions of active buyers a year, up billions from a year earlier, with more than 100 million new subscribers in the second and third quarters of 2019 alone, and the power of \"billions of subsidies.\"


Two years ago, perhaps no one could have imagined that the established e-commerce market could make a comeback, or that pinduoduo could have stirred up the e-commerce landscape on its own, worrying both ali and jingdong.


However, such user growth comes at the expense of huge losses. According to its 2019 Q3 earnings report, pinduoduo's net loss amounted to $2.3 billion, up from $6.9 billion in marketing costs alone in the quarter. Shares fell as much as 24% in front of the market. Until now, the share price has not returned to the pre-Q3 earnings range of $42 to $43.


Another thing pinduoduo has continued to do throughout the year is \"new brand plan \", which is to achieve low-cost cultivation of new brands by transforming factories. According to pinduoduo, the new brands are dominated by daily goods and smart appliances, with more than 27 million orders accumulated in the third quarter.


This is pinduoduo's 2019, as it continues to subsidize and refresh, hoping to erase the \"low-end, poor-quality\" label with products of guaranteed quality. At the q3 financial report, pinduoduo's founder, huang zheng, said that what pinduoduo does, whether it is a \"10 billion subsidy \"or a\" new brand plan \", is to bring more brands to the platform to let users know the value of the product and build trust in the platform.


In an interview with late late post, ceo chen rui, chairman of bilibili, said content platforms below $10 billion would be eliminated in china, and $10 billion would mean at least rmb 10 billion in annual revenue.


To be able to cross the line, B has made many attempts in the past year: e-sports, live broadcast, e-commerce, conference staff, offline activities, and so on. The most invested is the two business of e-sports and live broadcast, which is also the most reasonable path of B station to break the circle: choose the field with the existing user group to have a coincidence audience, continue to extend downward, from quadratic element exclusive space, slowly to the rich field of pan-entertainment.


In December, station B made an exclusive live broadcast of the World Finals of the League of Legends in China for the next three years for a whopping 800 million yuan. Although the B-station side did not disclose the exact amount of money signed by Vontimo, everyone with a little knowledge of the live broadcast industry would exclaim - B station really \"trench\" ah.


At this rate of expansion, huge losses cannot escape. Net loss for the quarter hit $100 million, up 65% from $100 million a year earlier, according to Q3.


On the other hand, the report revealed the good news: b-station's game business revenue and non-game business revenue finally leveled out, in business diversification in the first attempt to show results. Thanks to live and e-commerce, Q3's revenue from its live and value-added services business reached 100 million yuan, up 167% year-on-year, and its revenue from e-commerce and other services increased sevenfold.


In addition, the total number of users of the B station is no longer a small number, but still maintain a rapid growth. In 2019, the number of monthly active users of station B reached 100 million, an increase of 38% over the same period last year, and the number of full members reached 62 million, an increase of 48% over the same period last year – it is well known that to be a full member of station B, it is very strict to pass the examination.


The commercialisation has become more frequent, and young surfers at station B are worried about losing a harmonious, tonal community atmosphere, fearing that station B will become more popular and less distinctive. Fortunately, so far, station B has done well – as evidenced by the wildly acclaimed New Year's Eve party.


On january 8th mr. rickshaw's founder and ceo, mr. qian, announced at the launch of rickshaw's retail strategy that mr. rui now has 4507 direct stores, cashing in his own fag early last year and becoming the country's largest chain of coffee brands.


As with the budding year of 2018, mr. rui's pace in 2019 remains swift: lightning's listing, rapid expansion, and even the time point to make operational-level profits is a little earlier than expected.


In May 2019, Rui was lucky enough to have a successful listing on Nasdaq in the United States - less than 18 months after its store trial run in January 2018. For more than half a year, mr. rui's share price rose all the way, hitting the dollar. As of january 8, mr. rui's market capitalisation was about $100 million, double what it was when it went public.


According to rui xing's q3 earnings report, the first time this quarter made a profit at the store level (store operation level is not included in marketing expenses), realized a profit of 100 million yuan operating profit, operating profit margin reached%. This is no doubt a nodal moment for mr rui, which means he has good operational skills beyond capital-driven.


With a full-year net loss of as much as $100 million in 2018, the listing was accompanied by strong doubts about the way it was played, and the \"blind run\" and \"hopeless profit\" was the most widely praised by the public at that time. After making a profit at the store level, Ruixing has gained more recognition and trust from consumers: Ruixing Coffee App lasts more than 200 days, tops the list of top-notch food and drink at the top of the app Store, with the free list rising to less than 20; and on social media, more Ruixing \"popular\" figures can be seen: meteorite lattes, red robes, cold day milk tea.


The change in consumer perceptions is also inseparable from Ruixing's efforts at quality. In 2019, ruixing's coffee beans won a gold medal in the iicac international coffee tasting competition. In its recently released no-no-retail strategy, the new smart-no-coffee machine also uses raw materials such as iiac gold prize coffee beans and new zealand milk to match store quality.


In addition, mr. rui also released no-retailers, in addition to mr. rui's own brand goods, but also supply pepsi, nest, permanent natural and other third-party brands of goods. It calculates the preferential purchase price through large-scale procurement and customization in an effort to enable consumers to \"buy e-commerce prices offline \".


As pinduoduo steps into the fifth ring and b station to the general public, ray has moved from coffee to a broader retail sector. The PBL's 2019 story all points in the same direction: companies that can emerge are never willing to do small, beautiful business, but rather to widen boundaries and refresh the impression of the outside world.


The PBL's 2019 condensed one of the few highlights of the year for the internet industry: weaker economic conditions and opportunities for consumption and culture. In the entrepreneurial environment in which the giants are gradually turning themselves into infrastructure, there are still some small flames that are ignited, gradually burning and lighting up the larger market.


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