Recently, Alibaba, pinduoduo and Jingdong have successively released new quarterly financial reports. It is not difficult to see from the statements that the competition among the three giants of China’s e-commerce has become increasingly fierce in the face of the data competition of Xiaobi Chang. With the overall recovery of the domestic market after the epidemic, the data performance of the three giants in terms of revenue and net profit exceeded the market expectations, and the growth rate generally exceeded 30%. < p > < p > among them, pinduoduo’s revenue and net profit increased by 89% and 109% respectively, and the company realized its first quarterly profit (calculated by non US GAAP) since its listing. However, in terms of user growth, which is crucial to the e-commerce platform, the differences among the three companies are beginning to show: Although the annual number of active users of Alibaba is still the first, the growth rate has dropped below 10%, and it is an indisputable fact that its user scale encounters a growth bottleneck; Pinduoduo, the latest entrant, is still in a period of rapid development. This quarter, with a growth rate of nearly 40%, further narrowed the gap with Alibaba, and at the same time, Jingdong, which has the same growth rate, is far behind. < p > < p > in general, Ali still leads two competitors in most indicators of the three giants. However, in the face of the rapid rise and strong catch-up of the newly rich pinduoduo, the king who has dominated the e-commerce business for many years dare not take it lightly; As for the “Millennium second” JD, after nearly two years of Founder’s fading out, the company needs to find some new highlights in business to win the attention of the outside world. < p > < p > after the release of the financial report, the capital market reacted quickly. The stock prices of Ali and Jingdong fell to varying degrees, while pinduoduo rose by more than 20%, and the fortune of Huang Zheng, its founder, soared by more than 50 billion yuan. < / P > < p > due to the floating stock prices, the market value of the three companies has also changed. At present, Ali is still far ahead with a market value of over US $750 billion, while pinduoduo has surpassed Jingdong to become the second largest e-commerce platform in China. < p > < p > according to the financial report, in September 2020, the monthly number of active users of Alibaba was 881 million, which was less than 1% higher than that of 874 million in the previous quarter, and there was a difference of more than 18 million compared with the market expectation of 899 million. < / P > < p > as can be seen from the figure below, in the past two years, the quarterly increment of monthly active users of Alibaba has been maintained at the range of 22 million-39 million, while this quarter only achieved a month on month growth of 7 million, which can be said to be a record low. < p > < p > in the 12 months ending September 30, 2020, the annual number of active users of Alibaba was 757 million, while pinduoduo was closely followed by 731 million. The gap between the two was only 25.7 million, which was the first time that pinduoduo narrowed the gap to less than 30 million. < / P > < p > although Alibaba is still ahead of its rivals and has achieved a quarterly growth of 15 million, compared with the growth rate of 48.1 million of pinduoduo, it is only a matter of time before Alibaba is overtaken by the latter in terms of annual active users. The reason why Alibaba has fallen into a bottleneck in user growth is not only related to its own life cycle, but also related to its competitors, especially pinduoduo’s crazy plunder of new users in the sinking market. < p > < p > Alibaba, which has been established for more than 20 years, has entered the mature period of enterprise development. After the rapid development in the past few years, the slow growth of users is almost an unavoidable industry problem. In order to find new growth momentum in terms of user size, Ali has gradually penetrated into the sinking market dominated by low-end cities since 2018. Last year, it restarted and merged with Alibaba’s c2m < p > business. In the fixed function position of the three major products, juhuasuan’s main brand is sinking, Taobao’s main product is time limited rush purchase, and daily special sale is for industrial belt factories. < p > < p > in March this year, the “Taobao special price version” app, which had been tested for two years, was officially launched. Ali’s move was considered to be a replica of Duoduo, which was to connect the intermediate link between the factory and the consumer and try to attract the sinking Market users with low prices. On October 10, on the day of pinduoduo’s store celebration, Taobao’s special edition also launched the “1 yuan more fragrant Festival”, directly benchmarking the latter’s “true fragrance Festival” held in July. < / P > < p > after a series of actions, the competition between Alibaba and pinduoduo in the sinking market is full of gunpowder. However, judging from the financial report data, it seems that the problem of user growth of Alibaba has not been alleviated. < p > < p > as of September this year, the number of monthly active users of Taobao’s special edition exceeded 70 million, compared with 40 million at the end of June, equivalent to 30 million new monthly active users in the third quarter. However, as mentioned above, the total monthly live users of Alibaba increased by only 7 million in this quarter, which shows that the vast majority of the 30 million new users of Taobao special edition are transferred from existing users in Alibaba. That is to say, Taobao’s special price version, which was placed high hopes on, did not bring much surprise to Ali in the sinking market. < p > < p > according to Jiang Fan’s recent global investor conference, 70% of Ali’s new users in the past two years have come from the sinking market. Does the slowing down of the user growth in this quarter indicate that Ali’s road to sinking is also very difficult? < / P > < p > although pinduoduo’s user growth is quite strong, compared with Alibaba and Jingdong, the former is more than the other two There is a big gap between the hands. < p > < p > according to the financial report, in the third quarter of 2020, pinduoduo’s revenue was 14.209 billion yuan, up 89% year-on-year, exceeding the market expectation of 12.205 billion yuan; under non US general accounting standards, the net profit was 466.4 million yuan, up 108.94% compared with the net loss of 1.660.4 billion yuan in the same period of last year. In terms of growth rate alone, pinduoduo has indeed achieved good results, but its overall revenue and profitability are still only a fraction of that of Alibaba and Jingdong. < p > < p > in this quarter, Alibaba’s revenue was 155.059 billion yuan, and JD’s revenue was 174.2 billion yuan; Alibaba’s net profit was 47.088 billion yuan, and Jingdong’s net profit was 5.6 billion yuan. In addition, in terms of the growth rate of revenue and net profit, Alibaba and JD are still moving forward steadily, both maintaining a growth rate of more than 30%. < / P > < p > starting with the strategy of “encircling the city from the countryside”, pinduoduo has a certain advantage in the harvest of users, but at the same time, it is at a disadvantage in Gmv because of the relatively low purchasing power of this group. As of the end of September this year, the annual Gmv of pinduoduo was 1.45 trillion yuan. Although the overall growth rate was 73% year-on-year, the average annual consumption of each user was only 1993 yuan after being allocated to users with a large base. However, in the first two quarters of this year, the data were 1842 yuan and 1857 yuan respectively, achieving only 0.8% and 7% month on month growth. < p > < p > in contrast, Alibaba, which encountered a bottleneck in user growth, had an annual Gmv of 7 trillion yuan in the same period. In front of the user scale similar to pinduoduo, the average annual consumption level per capita has been close to 10000 yuan, which is about five times that of pinduoduo. Moreover, according to the current growth rate of pinduoduo, it may be difficult to catch up with Ali’s Gmv and people’s average annual consumption in recent years. < / P > < p > in the third quarter, among the 14.21 billion yuan of pinduoduo’s revenue, the platform online marketing technology service revenue alone was as high as 12.878 billion yuan, accounting for more than 91% of the total revenue, while the other commission income was only 1.332 billion yuan. Beyond that, pinduoduo has few other revenue sources. In the third quarter, the cost of pinduoduo was 3.26 billion yuan, a year-on-year increase of 78%; the cost of pinduoduo was 12.245 billion yuan, an increase of 45% year-on-year. Among them, the marketing cost was 10.07 billion yuan, with a year-on-year increase of 46%; in addition, the management cost was 369 million yuan, and the research and development cost was 1.8 billion yuan. < / P > < p > it is worth noting that among all the expenses, pinduoduo’s marketing expenses account for the majority, accounting for almost 82% of the total expenses. And from the data of the past two years, this expenditure will continue to increase. It is estimated that it will be difficult to find an alternative scheme in a short time. < / P > < p > in contrast to Alibaba’s active penetration into the sinking market for user growth, pinduoduo has made many attempts to upgrade its brand in order to get closer to its competitors in terms of revenue and profit. < / P > < p > since the “ten billion subsidy” program last year, pinduoduo has been trying to enter the market within the Fifth Ring Road. For pinduoduo, once it wins this market, it will not only gradually get rid of the inherent label of “low”, but also help to improve the per capita consumption level of its users. < / P > < p > in addition, in addition to expanding the categories of its original business, pinduoduo also increases its revenue sources by betting on new businesses such as buying more vegetables. However, due to the large number of competitors in the market and the need to invest a lot of money in the early stage of supply chain infrastructure construction, it is still too early to say whether buying more vegetables can ultimately bring new business growth to pinduoduo. < p > < p > in addition to being the first in terms of revenue, Jingdong lags behind its competitors in other indicators. The number one in revenue is still due to its advantages in categories – mainly in the 3C category of household appliances with higher unit price, but this does not guarantee that it will also occupy an advantage in profits. < p > < p > in this quarter, the net profit of JD was 5.6 billion yuan. Although it achieved a substantial increase of more than 80%, there was still a big gap between the two compared with the net gain of 47 billion yuan from Alibaba, the old counterpart. In terms of annual active users, the growth rate of Jingdong is equivalent to that of its new competitor pinduoduo, both more than 30%. However, compared with the 700 million volume of its two competitors, its 400 million volume is not at the same level. < / P > < p > in general, although the indicators of JD are not ugly, and the overall performance has also achieved steady growth, most of the actions and achievements of JD do not seem to stir up too much waves in the face of fierce competition between Ali, the king of the industry, and pinduoduo, a new upstart of e-commerce. < p > < p > take the layout of the sinking market as an example. Before the establishment of pinduoduo, Jingdong had already obtained the strategic investment of Tencent, but it did not make good use of the huge flow city of wechat. Instead, it was preempted by the latecomers. Finally, pinduoduo quickly rose from the sinking market with the play of “social + e-commerce”. < p > < p > seeing that the flow of the first and second tier cities is gradually peaking, Jingdong tries to speed up the pace of penetration into low-level cities, but pinduoduo has grown into a giant at this time, and blocks the crazy exploration of its rivals with the momentum of one man in charge. < / P > < p > since last year, JD has launched “Jingxi” and “Jingdong super speed version” and other independent apps aimed at users in the sinking market. In terms of playing methods, Jingxi and Taobao’s special price versions are the same, almost all of which are fighting pinduoduo in the mode of pinduoduo. However, under the “ten billion subsidy” launched by the three giants at the same time, Jingdong’s sinking road did not obtain obvious advantages. < / P > < p > according to the financial report, in the 12 months ended September 30, the number of active users of JD was 442 million, which was 24.2 million in a single quarter compared with 417 million in the previous quarter. According to Jingdong, 80% of the new users come from the sinking market