Chapter 102: Pinhao and the Price Slashing Model!

Xu Mo had been resting for two months and recently caught up with his studies, barely reaching the passing line.

Autumn was approaching, the season when fruits ripened.

Xu Mo began integrating various fruits into Pinhao, selling them through group purchases, aiming to enter the online shopping market.

He had been developing this project for over three months, acquiring some users. Now, by introducing fruits, he hoped to establish a foothold and expand into other categories.

During these three months, the Pinhao Goods had been quietly operational, with no major incidents.

Xu Mo was merely testing the waters.

Tang Lei, Gu Huanxi, and Li Banzhuang had some doubts about this model, but instead of questioning further, they directly joined in management.

Since this project was initiated by Xu Mo, each of them temporarily invested three million yuan, each occupying five percent. Xu Mo alone holds eighty percent, while the remaining five percent serves as incentives distributed to other employees.

They operated together.

With the addition of these four, Pinhao’s staff slowly increased, and Xu Mo also recruited several executives from the Little Monster Bike.

Currently, Pinhao has over twenty employees.

“We need to focus on the sinking market of online shopping, not aiming for high-end stuff! Now, we start with fruit group buying as our foundation and focus on developing the group buying model!”

“The so-called group buying is using WeChat and QQ social relationships to initiate group purchases, creating a new model of social e-commerce. We will register a service account on WeChat and post information about fruit group buying!”

“Furthermore! We will launch another model, which is the Price Slashing Model’! The more users invited, the cheaper the goods will be! We emphasize good quality at a fair price!”

Upon hearing this, Tang Lei asked, “Xu Mo, if our platform’s items don’t make money, will businesses join us? Price Slashing Model… What if cutting prices leads to losses? Who would still sell on our platform?”

Xu Mo looked at him and smiled, saying, “This requires technical support! While our Price Slashing and group buying models aim to leverage customer referrals to lower prices, we will control the costs of this model effectively! That means customers can indeed slash prices to extremely low levels, but they’ll need to attract a large number of users to do so.”

“We’ll calculate based on one yuan per user. If a user can bring us a hundred new users, what harm does it do to reward them?”

“Let’s not underestimate the power of the Price Slashing Model! Our primary goal now is to attract users, to gather enough of them! Don’t worry about us lacking funds or businesses joining us. As long as we have enough users here, they will come!”

“We still have a substantial amount of funds on hand, so let’s kick off the Price Slashing and group buying Model and promote them as much as possible!”

Gu Huanxi chuckled, “I find this model quite innovative. It might just catch on!”

“Online shopping with price slashing is indeed a new trend! I love online shopping, but negotiating prices is always tricky. Xu Mo, your idea seems very promising!” Li Banzhuang added with a smile.

This girl was becoming more and more beautiful.

With lots of money in hand, full of spirit, she had also learned makeup after entering university, making herself look very attractive.

Li Banzhuang had a delicate youthful appearance and a petite figure, giving people the impression that she was still underage.

“If you all think it’s good, then that’s great. Next up is autumn, when fruits will be plentiful. We’ll start with fruits and then expand into other categories!” Xu Mo grinned, “This model has been developing for long enough. It’s time to make our move!”

“Great!”

The three nodded in agreement, and Xu Mo decided to proceed with the promotion to gauge its effectiveness.

After developing for such a long time, Pinhao already had a certain level of recognition. Now, with the introduction of the new model, Xu Mo hoped it would create a breakthrough.

Only when Pinhao gains momentum can it possibly expand into other new categories and transition into a true e-commerce platform.

If he succeeds, then… Taobao, Tmall, Jingdong, tremble!

Xu Mo was filled with determination.

…

While Xu Mo was busy with Pinhao, another project began to develop.

This project was different from e-commerce but shared some similarities. For example, the group buying model used in Pinhao could be integrated into this project for mutual development.

This project was called the short video project, specifically involving the popular platforms Douyin ^[1]Douyin is known internationally as TikTok and Huoshan Short Videos.

Last month, Xu Mo invested ten million yuan to recruit over twenty algorithm talents to join the short video project. He also allocated one billion yuan to support the development of the short video industry.

It was announced that this billion yuan would be entirely used as bonuses, distributed to video bloggers.

At this point, there are many companies in China involved in video production, such as Bilibili and AcFun^[2]a Chinese online video platform known for its focus on user-generated content, especially animated, gaming-related, and youth-oriented videos. It was originally established as a community-driven site … Continue reading, both of which have seen good development.

However, Xu Mo’s focus is primarily on developing two to three-minute short videos. He aims to enter the realm of long videos through the medium of short videos to achieve growth.

With the investment of one billion yuan, Xu Mo has already attracted many bloggers to create and publish videos on Douyin’s short video platform.

Although still in the development phase, the user base on Douyin has already exceeded two hundred thousand users.

Xu Mo estimated that substantial support for video bloggers would still be necessary. The one billion in bonuses was just the beginning, not the end…

…

The group buying model, it caught fire!

Xu Mo and his team began integrating fruits into Pinhao starting from June when fruits were in season, then promoted them on Pinhao.

Both the group buying and Price Slashing Model were launched simultaneously, attracting users to invite new users and participate in group buying.

Once the promotion began, the group buying and Price Slashing Model started spreading like a virus across WeChat and other social networks.

By August, Pinhao topped the free download charts on the Store, experiencing a surge in users. Overnight, the platform gained thirty thousand new users.

Meanwhile, Xu Mo convened an internal meeting and established a consumer survey team and a damaged goods compensation team.

The consumer survey team was tasked with gathering feedback from customers about the products and making necessary adjustments.

Additionally, the damaged goods compensation team ensured instant refunds for any products confirmed by customer service as defective, without hesitation.

Xu Mo also emphasized transparency in the origins of products from partnering merchants, advocating for direct sourcing from the origin to ensure authenticity, with procurement teams visiting and documenting firsthand information.

Following these initiatives, Pinhao received a flood of positive reviews, and user growth began to skyrocket.

By the time September rolled around and schools reopened, Xu Mo’s Pinhao had amassed nearly one million registered users and over a thousand stores.

The model has achieved initial operational success.

Undoubtedly, when the data came out, Tang Lei and Gu Huanxi were both greatly shocked.

They had predicted that this model might catch on, but they hadn’t expected it to explode so directly and rapidly.

First, it topped the free download charts, then users increased like crazy.

Because of Pinhao, many fruit farmers who grow fruits achieved huge harvests, bypassing intermediaries in fruit sales directly.

“This model… it’s a bit crazy!” Li Banzhuang exclaimed. “Many of my classmates have joined in, and a lot of people find the Price Slashing Model very novel! Over a dozen girls in our class are all crazily slashing prices!”

“In our class too!” Gu Huanxi laughed. “Not just the girls, even the guys are slashing prices or inviting family members to join in! A hundred yuan item can be slashed to twenty or thirty yuan!”

“It’s crazy! It’s like everyone in the world has gone crazy! It feels like viral spread!” Tang Lei exclaimed excitedly. “Xu Mo, are we sticking just to fruits? Are we planning to expand into other things?”

“Of course, we’ll expand into other areas! After we handle fruits, we’ll need to upgrade technologically and aim for a full range of online shopping products! We’re going to build a complete online shopping platform!” Xu Mo smiled.

“Great!”

Everyone was thrilled at the prospect.