Alibaba, JD.com, Pinduoduo engage in fierce behind-the-scenes competition

This year's 618 is no longer the same as before;

The internet is also no longer what it used to be.

Yet, even under such circumstances, we still witness a covert battle among e-commerce giants like Alibaba's Taobao, JD.com, and Pinduoduo.

For the e-commerce industry, the overt and covert struggles among these players are beneficial for healthy industry development. From this perspective, we can glimpse the profound transformations happening in the sector.

This year's 618 saw JD.com experimenting with AI digital humans;

This year's 618 saw Taobao going all out with subsidies;

This year's 618 saw Pinduoduo continuing to advance at its own pace.

Behind the seemingly lukewarm facade, undercurrents are beginning to surge.

This will not only propel the e-commerce industry into a new phase but also elevate the evolution and competition of the internet industry to unprecedented heights.

Therefore, as Taobao, JD.com, and Pinduoduo once again clash on the e-commerce battlefield, we shouldn't just focus on their "covert battles" but rather use these skirmishes to uncover new trends in e-commerce and the internet.

Starting from this, we can gain a proper understanding of Taobao, JD.com, and Pinduoduo and truly perceive the profound changes unfolding in the industry.

Traffic is no longer the focal point for Taobao, JD.com, and Pinduoduo.

There was a time when traffic was the ultimate prize for e-commerce players and even the entire internet industry.

Whether through massive subsidies or overwhelming ad campaigns, e-commerce players always had one ultimate goal.

That goal was traffic.

618 was their main battleground for traffic.

Although Taobao, JD.com, and Pinduoduo exhausted every effort to focus on traffic, the 红利 of traffic was the real key to their strategies' success.

Ultimately, the 红利 of traffic still existing was why these players saw it as their competitive focus.

However, this year's 618 shows that while familiar tactics like subsidies and ads are still in play, the real competitive focus is no longer just traffic or market size.

On one hand, the 红利 of traffic has peaked, leading players to shift focus.

On the other hand, the failure of old models and the rise of new technologies like AI have driven this change.

This presents a new opportunity for Taobao, JD.com, and Pinduoduo.

They've found ways beyond the internet to solve previously unsolvable pain points—methods that are introspective rather than outward-facing.

The application of AI and the rise of new e-commerce models like C2M are direct manifestations of this trend.

As these new elements play increasingly vital roles in e-commerce transformation, traffic will no longer be the focus for Taobao, JD.com, and Pinduoduo.

So, what is their new focus?

One key aspect is how these players use new technologies and models to reinvent themselves and find new growth strategies in an era of 存量。

This will be their competitive focus in the near future.

Cost-effectiveness is becoming Taobao, JD.com, and Pinduoduo's trump card.

Looking back at internet history, price advantages have always played a crucial role.

In essence, the history of the internet is a history of using price ratios to attract users and convert traffic.

Players who mastered the right price ratios and leveraged them for growth often emerged victorious.

As the internet landscape solidified and capital 红利 faded, the old flood-the-market subsidy strategies became increasingly ineffective.

This year's 618 reveals a new trend:

Cost-effectiveness is becoming the new trump card for many players.

Whether it's JD.com's "cheap yet good" or Taobao's "more than just cheap," players are no longer fixated solely on price.

Beyond price, more players are focusing on cost-effectiveness and post-sale services to win over 存量 users.

On the surface, Taobao, JD.com, and Pinduoduo are still competing on price, but today's price wars are fundamentally different from the past.

Instead of obsessing over price, they now use it as a "door-opener" to attract users, then impress them with cost-effectiveness to retain and convert them.

This is the new competitive focus for these players.

Ultimately, Taobao, JD.com, and Pinduoduo can't just be platforms or middlemen—they must engage more deeply with the industries they serve.

Only then can they seize new opportunities in this new phase.

For every player, finding a 良性互动 between cost-effectiveness and growth is key to winning in this new era.

III

The internet is no longer Taobao, JD.com, and Pinduoduo's defining "label."

As the internet becomes a way of life and its models mature, relying solely on it for solutions or as a facade is increasingly problematic.

This year's 618 also shows that the internet is no longer players' only "label."

Even before 618, Taobao, JD.com, and Pinduoduo had begun embracing AI and digital-real integration.

Whether it's Jack Ma's call for "AI e-commerce," Richard Liu's digital avatar on JD's livestreams, or Pinduoduo's forward-looking 布局 in large models, these players are seeking new "labels."

For each player, finding new technologies and models to overcome current challenges is the key to breaking free from stagnation.

As new technologies and models mature, we'll see more elements replacing the internet as growth drivers and 更多 methods optimizing and reshaping internet models.

When Taobao, JD.com, and Pinduoduo find new "labels" to replace the internet and leverage them for 商业闭环， they'll truly enter a new phase.

In the future, their standing in e-commerce will depend not on internet-based models but on new foundations like AI.

Only by finding the right models and evolving from the internet era to the AI era can they enter a 全新的 cycle.

Conclusion

This year's 618 has arrived as scheduled.

So has the overt and covert competition among Taobao, JD.com, and Pinduoduo.

Though the 配方 and 味道 are familiar, beyond this familiarity lies new changes.

In short, the 暗地里火拼 among Taobao, JD.com, and Pinduoduo has escalated.

Have you noticed? Traffic, especially 规模- and 效率-driven traffic, is no longer the focus;

Have you noticed? Subsidies, especially flood-the-market 烧钱 subsidies, are no longer the 首选;

Have you noticed? The internet, especially outward-facing models, is no longer players' go-to.

For Taobao, JD.com, and Pinduoduo, this is a new journey and a new opportunity.

Only by mastering the right growth models can they remain relevant in this new cycle.

Otherwise, the tide of change will wash away once-dominant "heroes."$Alibaba(BABA.US)

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Author: Meng Yonghui，资深撰稿人，专栏作家，行业观察家，知名 KOL，数字经济学者。