How hard is it to make friends with big brands

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By Liu Shanshan
Source: pole business (ID: jdsy2020)
Tesla’s refusal to deliver vehicles to pinduoduo group buyers is continuing.
In the voices of different parties, the latest news shows that Tesla has closed the order of the upgraded model 3 of pinduoduo group purchase from Hubei Province on the evening of August 14 after refusing to deliver.
This means that Tesla has completely rejected the possibility of delivery of this order. There are only two possibilities for a car owner to obtain Tesla’s redelivery: one is to sue Tesla and require Tesla to deliver according to the contract; the other is to place an order from the official website again.
In response, several lawyers said that if the owner decided to file a lawsuit, the court would probably support the owner’s claim that the final order delivery should be completed. However, some lawyers also said, “in view of excessive publicity and unauthorized group buying activities involved in pinduoduo and Yiyi car buying activities, Tesla can also file a lawsuit to require the other party to bear legal responsibility for this.”
“Although the case, consumers probably win, but pinduoduo actually has problems.” According to a senior researcher of a digital economy think tank who asked for anonymity, from the perspective of market economy, because Tesla has previously publicly stated that it has not cooperated with pinduoduo in this group buying activity, nor has it provided any form of entrusted sales service, pinduoduo still continues the group buying activity, which is not in line with the spirit of the market contract.
Does the group purchase of ten thousand people not conform to the spirit of market contract?
At present, there are a lot of related events. In a simple summary, Tesla said that pinduoduo’s group purchase constituted resale and therefore refused to deliver. “Second” means that consumers do not support the business.
It is worth mentioning that the user did inform Tesla sales before picking up the car, “he has received pinduoduo’s subsidy.” When the order is submitted to Tesla, payment is made by pinduoduo, so Tesla determines that it is “resold.”.
In addition, according to the pictures released by the microblog authentication user “the ride is not on the way”, when a user inquires about the invoice, it is appropriate to buy a car, and the customer service says that it is appropriate to buy a car to issue it. I wonder if this is one of the reasons for Tesla’s refusal to deliver. If the above information is true, from a financial point of view, the contract information in the financial invoice should be consistent with the invoice information, and the customer should not be personally identified Signed contract, invoice to pinduoduo related companies.
In the dispute, some voices believe that Tesla’s refusal to deliver model 3 is a discrimination and damage to the rights and interests of Chinese and American consumers.
As far as Tesla is concerned, the argument that the case rises to the difference between the rights and interests of consumers between China and the United States is not tenable. As early as 2013, Tesla set up the “China Committee” to study the Chinese market and legal policies. Since 2019, Tesla has started to organize test drive activities frequently. Senior executives open microblogs to interact with users. The system has built-in station B, mahjong and landlords. It also hopes to better cater to Chinese consumers in terms of products and marketing.
“There is only one reason for refusing to deliver: pinduoduo’s group buying may damage Tesla’s brand reputation. Once it is promoted, it will have a great negative effect on its brand, pricing system and sales system. ” A senior researcher at the digital economy think tank said.
In his opinion, on the day of pinduoduo’s group buying activity, Tesla declared that it had not cooperated with pinduoduo or yibuyi, but was still forced to associate and form a group, which violated Tesla’s direct selling principle and was not recognized by Tesla.
“From a market economy point of view, this does not conform to the spirit of the market contract.” The researcher said: according to normal business principles, when a brand warns consumers and the industry, the platform should stop the group buying activities of 10000 people, or communicate with the brand to obtain authorization before carrying out activities. However, pinduoduo obviously does not, but continues to launch marketing activities to earn eyeballs and traffic.
“The gimmick of the 10000 people group buying activity actually only provides 5 cars, but it may cause the outside world to misunderstand the price of 10000 Tesla units.” Chen Yinjiang, Deputy Secretary General of the China Consumer Law Research Association, also said in an interview with the media that pinduoduo publicly said that it had prepared enough new cars during the event, but in the specific operation, it first collected the personal information of consumers and then placed an order with Tesla with consumer information, deliberately concealing the true information from Tesla.
Some netizens agreed with this view, “pinduoduo has put up a sales page on its official website, and there is a payment channel, which has constituted sales. It is equivalent to selling new cars without authorization. Tesla is afraid of this link.”
“To understand Tesla, a brand needs to be responsible for its own brand strength.” Another observer, who also asked for anonymity and focused on the study of the history of enterprise and economic thought, said that malicious competition and marketing through loopholes is not a part of market freedom, but rather undermines the rules of the game of market freedom.
“If an enterprise wants to develop healthily, the basic elements such as honesty and abiding by the contract are also very important. Even the creative destruction advocated by Joseph Schumpeter, an Austrian economist, is based on respect for the spirit of the basic contract. ” The observer said.
As we all know, Tesla’s global sales strategy can only be purchased through official channels, that is, the official website, not through any third-party channels. In addition, although the price of model 3 has gradually become more and more popular, it can dominate the domestic electric vehicle market, and is also in the forefront of luxury brand sales. In fact, there is only one reason: brand effect.
“It’s not a matter of how many cars to sell and what price to sell. It’s a major blow to the brand’s tonality.” “Banfo Xianren” also said that compared with Weilai, Xiaopeng and BYD, Tesla’s core competitiveness is not the tri electric system, vehicle built-in system or endurance, but “brand, which is forced”

According to an automotive media reporter who has contacted Tesla staff for many times, even if the Tesla experience center conducts a customer experience test drive, it has strict brand requirements. “This shows how popular Tesla is with pinduoduo’s unauthorized group buying activities.”
More importantly, because of pinduoduo’s previous brand image, Tesla is worried that this will give users the impression of “brand becoming low”, which will have a certain impact on consumers who purchase through other normal channels. “Think about it, for example, when LV bag can be purchased in a 10 yuan shop, can it still maintain its original brand image?”
In fact, for many luxury brands, in order to maintain a healthy channel ecology and consider the long-term interests, the short-term interests are the least important. Even if many luxury brands can not be sold, they would rather be destroyed rather than discounted. In July 2018, a number of British media reported that Burberry, a high-end fashion brand in the UK, burned more than 28.6 million pounds of unsold luxury goods in the past year, in order to prevent distributors from selling goods to “wrong people” at low prices in the “gray market”.
Pinduoduo meets bottleneck
In any case, whether Tesla’s practice of stopping delivery is appropriate or not is still a “Rashomon”, which can only be judged by law.
As we all know, behind Pindo’s “relationship” with all the high-end brands, Pinto wants to use the opportunity to make its brand from low-end to high-end, and change the previous impression of “fake”, “cheap” and “fake”.
Pinduoduo has made a lot of efforts to promote the brand. It started to upgrade its brand in the second half of 2018, including one of the key points of 10 billion subsidy 2.0, and also promoted the promotion of products from “single product” dimension to “brand” dimension.
What is the important way to make your brand go up? Try to let more famous brands join in and become their own friends.
Pinduoduo chooses Tesla as a group buying activity for ten thousand people, and its purpose is the same. Because Tesla users are the new middle-class elite with the most consumption power at present and in the future for a long time, if we can take advantage of Tesla, it will obviously have more influence and brand symbolic significance than the iPhone subsidy. “Even Tesla is a friend in the direct mode. What brand can’t be a friend?”
According to an observer, the most ideal way for pinduoduo is to cooperate directly with famous brands, big brands and international brands, and introduce platforms through official channels. But behind Tesla’s refusal, one thing is obvious: at present, many high-end brands do not want to become “friends” with pinduoduo, or even get involved.
Before Tesla, Tencent Nintendo, AMD, Weigang, Hailan puzzle, Dyson, apple and other brands have publicly stated that pinduoduo has not been authorized by the brand to participate in 10 billion subsidy products.
“The bottleneck of pinduoduo’s high-end road lies in the fact that the public’s recognition of pinduoduo has been deeply rooted, leading to many high-end brands’ worries, so they have publicly declared that they have not cooperated with pinduoduo.” A senior researcher of the above digital economy think tank said: for high-end brands, on the one hand, they are worried about destroying the price system on which brands rely to maintain to a certain extent, and on the other hand, they are worried that pinduoduo’s previous brand image will affect their own brand image.
In fact, for many high-end brands, how to price a product is a complex topic with intertwined interests, involving a huge industrial chain and distribution channels. Once a channel has a conflict with other channels, it may not only cause vicious market competition, but also greatly affect the brand foundation.
The above researchers said that from this perspective, it also made pinduoduo’s high-end road extremely difficult. After the hope of directly becoming friends with many famous brands failed, the only way for pinduoduo to “save the country through the curve” was to enter the dealer. However, for an international brand like Tesla, this move did not work.
So why didn’t the rejection of other brands have been as strong as Tesla before?
“This is directly related to the sales channels. Before that, both switch, apple and Dyson were after all popular consumer goods, and their products were delivered by the distributors who settled in pinduoduo. It is difficult for the brand side to control the source of goods.” Therefore, for apple, switch, etc., only a public statement can be used to warn consumers to buy through unofficial channels. If something goes wrong, its after-sales may be affected.
For pinduoduo, which takes the road of “encircling the city from the countryside”, this is the embarrassment: it is eager to make friends with more big brands, but these brands are not interested in traffic subsidies and 10 billion subsidies, and do not want to be friends with pinduoduo. This not only makes the actual effect of pinduoduo’s brand on the road less than expected, but also adds other risks.
Pinduoduo also has a potential risk. The 10 billion subsidy is not a long-term solution. Its short-term operation and the business model of burning money for scale have no threshold for its competition mode, and it is difficult to guarantee the loyalty of these consumers. Once more well-known brands like Tesla, in the face of expanding losses, will the attitude of the capital market change?
After all, the reconstruction of brand image does not rely on the short-term sales stimulation brought by subsidies, but more importantly, the reconstruction of credit system and word-of-mouth. “Pinduoduo’s high-end ambition is self-evident, but we should follow the trend, and it is not a group buying activity, a third-party dealer without the right to sell can be settled overnight.” Said the senior researcher of the digital economy think tank.