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PostsE-commerce: Disenchanted! Either traffic is king, or efficiency is king | Year-end summary series (2)
China's internet e-commerce business, after years of fierce competition, has completely lost its charm. In the tailwind, some mistook industry dividends for their own barriers, while others took consumption upgrades for granted, ultimately suffering painful lessons.
Looking back, when the curtain of antitrust falls, it becomes clear that when supply does not constitute a barrier, performance does not constitute a barrier, first-mover advantage does not constitute a barrier, and payment does not constitute a barrier, the so-called e-commerce is merely a transformation of retail channels.
When domestic production capacity is excessive, goods are rampant, and supply and demand are severely mismatched, the short-term trade-offs from the platform's perspective are to maximize the kneeling for the scarce resources among the factors—user demand, with internal competition vividly reflected in the e-commerce field.
However, stepping out of the superficial internal competition, the competition in e-commerce, to some extent, is either about traffic supremacy—holding low-cost traffic, or achieving the greatest operational efficiency.
These two points correspond to Douyin e-commerce and Pinduoduo, respectively. The traffic supremacy model has issues when replicated overseas, but those who prioritize efficiency, with domestic companies honing their internal functions to the level of ByteDance's "Ninja," are likely to sweep away competitors in the overseas economy; at least such management teams are reassuring.
Indeed, in the short term, companies like JD.com may benefit from some government subsidies as external logic, but in long-term competition, the endogenous driving logic is key to sustained EPS growth. Therefore, in the physical e-commerce sector, Dolphin is betting that the eventual winners may be Douyin and Pinduoduo.
Annual Highlights Review:
《 [China E-commerce: Rolling in and out, is the outcome just a 10 PE retail stock?](https://longportapp.cn/zh-CN/topics/22201479?channel=t22201479&invite-code=032064&app_id=longbridge&utm_source=longbridge_app_share&locale=zh-CN" \t "/Users/admin/Documents\x/_blank)》
《The Fall of Internet Gods: Who Killed Alibaba, JD.com, Tencent, and Meituan?》
《 Aggressive Investment + Aggressive Layoffs, Has Alibaba Really Come Back?》
《 Pinduoduo: Natural Disasters Mixed with Artificial Disasters, Has It Really Become "Pinduoduo"?》
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