Buy a group unwieldy, enter group buy siege

As a result of the initial strategic mistake, the purchase group has been unwieldy, want to comb the internal structure becomes difficult, cancel the site, causing mass layoffs, let the purchase group into a swirl of public opinion, hope to buy through the kind of blood, consumers are not buying;

Wen/Sinorama reporter Jinwen

The fallout has been a bit annoying recently as the chief operating officer of the buy-and-buy network, in fact, his current situation can be described with a lot of trouble. The purchase of a hand-built network recently fell into the plight of capital fracture, in order not to let years of painstaking efforts, he traveled around, with the venture capital agencies to discuss financing matters. However, it has been fruitless. For now, he is preparing to visit the United States Union investment, the company's partners have also shown a strong interest in the purchase of the group, only because the two sides in the conditions of cooperation, there is disagreement, did not reach. Now, he is ready to make another effort, burn his bridges, as long as the other side of the conditions, he is ready to one by one accept.

The change is fruitless.

In the Jinrongjie's office, the fallout has once again seen the company's partner, Li, and Li went straight to the subject, "Dear Charles, I know the purpose of your day, and to tell you the truth, this is the 6th group buying company I have seen this week." Each company has brought a generous financing conditions, but are not satisfied with the return, then, you have anything to attract me? ”

The fallout said, "as an old friend, the advantages of buying a group should be obvious, we are the first group buying enterprises in China, the current market share in the industry ranked first, a series of research data, proved that we are the industry's most outstanding group buying enterprises. My partners and I have years of experience working overseas, familiar with the Internet and the operation of E-commerce, I have also worked in Groupon, for group buying operation mode we are again familiar with ... "The fallout side of the said side of the set up a series of corporate performance statements.

But Li took the report and interrupted the fallout, "Charles, we all know what you're talking about, though at the moment, the purchasing group is working well, but the fact is that you are still not profitable." ”

The aftermath of a heavy, but still calm said: "Although we are not yet profitable, but you should also be clear, in the group buying market, the size of everything." If we want to make a profit, it is absolutely achievable. ”

"There are two or three of your peers in the competition, where are your core strengths?" Size can be achieved with money, but the lack of a core advantage is not sustainable, even if I give you the investment, how long can you end the current burning money behavior? How long will it be profitable? Li also made his point.

The fallout sipped chuckle, without speaking, he admitted that Li's words in some way did poke at his Achilles ' heel, but he did not want to give up, "the purchase of the group from the second half of this year began to increase the proportion of physical group buy, this standardized product can speed up cash flow, to achieve profitability can be expected; The first-served advantage of buying a group can not be replaced, our previous efforts to let us in the eyes of peers and consumers is very high, this is the other group purchase site in a short period of time is difficult to exceed the advantages. ”

Li still shook his head, "you said all this is now can be seen, and the future, is just a blueprint, it is difficult to see a practical way, now every group buying companies are planning to make a profit, but the profit timetable?" Still cannot be seen. and the physical category of the competition will be more dangerous, to participate in the purchase of goods, you are equivalent to add a group of more mature than the group purchase website of the consumer website competitors. At present, it seems, in and Taobao, the competition in the Beijing-East Group, the purchase of the group, whether from the quality control or logistics system is not the upper hand. and essentially, group buying is a marketing channel, as a profitable sales channel is not an easy thing, both to make money and low discount, this balance is very difficult. ”

Finally Li joked: "I'm sorry, my friend, if you can't tell us your profit model and predictable profit time, I can't convince my partner." It's hard for me to help you this time. Also, my advice to you is not to see investors again until you have failed to answer my question, which will put you in a much greater embarrassment. ”

After hearing Li's words, the fallout looks gloomy, Lee's questioning, he also heard from other investment institutions, it is indeed difficult to evade the fact.

Expansion contest

Leave the United States Alliance investment, the fallout in the downstairs Starbucks sat for a while, this is his old habit, as long as there are any problems, like a person to stay. Sitting in the window position, the aftermath of a bow will be able to see the road in the middle of the billboard, which is on top of another group buying site outdoor advertising. The aftermath can not help but recall that the original, the purchase of the group's advertising has also spread across the streets. "It was a passionate and burning time!" "The fallout took up coffee and drank a wry smile."

The fallout came back to Beijing in 2010 to set up a shopping spree, when China did not have a buying site. The fallout came after the originator of Groupon, when he returned to his family in 2009, when he suddenly started the idea of a Chinese version of Groupon. He and the United States engaged in E-commerce in the old classmate Tong, two people hit, each ended up in the United States of excellent work, return to business. The establishment of a purchasing group, the aftermath of the CEO, in charge of the overall operation of the company, Tong as the company's chief operating officer, in charge of the company's internal management. A master outside a Lord, the division of labor is clear.

The beginning of a period of time, can be said to be downwind, because of Groupon's successful experience in the United States, China's investors are very optimistic about this new business model, and the fallout and Tong has many years of e-commerce experience, from the site construction to the negotiations with the merchants, have been very smooth. "It was a busy and happy day." "In retrospect today, the fallout still feels like a good time."

However, the long time, group buying this mode of entry threshold is very low, after the establishment of the purchase group, followed by a succession of people, and more rich, at large and buy a higher group. The purchase of a group in a city station, followed by the following, the purchase of the group launched outdoor advertising, followers also flocked.

In the face of competition from the market, the aftermath of heroism, one wants to compete. With a first-served advantage, the aftermath of persuading investors, access to large sums of money, and began recruiting in the country, the establishment of recruitment, a short period of one year, in the national construction of more than 600 stations, the number of employees from the original dozens of people, developed into thousands of people, on-line products from the original one day, Into a daily hundreds of products online. The purchase group gradually became the industry's Big Mac.

Other group buying sites are not outdone, and venture capitalists are also getting the money they have grown. National construction stations, large-scale recruitment, vicious digging and other incidents. In this context, the purchase of the group also seems to be on the chord of the gyro, just keep rotating, constantly expanding the scale, the national construction station, recruit, grab customer resources, for fear of being overtaken by a backward. During that time, the fallout itself was too busy to think carefully about where the problem had arisen.

Veteran resignation

At this time, he and his old partner Tong, there was a disagreement. At the end of 2010, after a year of entrepreneurship, Tong chose to leave. The fallout still remembers the last time the two sides communicated. The same café, Liu Tongyo The fallout, is going to talk. At that time, the fallout had already felt the tong of some of the ideological fluctuations, just can be good communication, eliminate differences, so happy to keep the appointment.

"We really haven't had a good chat for a long time, we should go to the bar, I'll buy you a drink, we'll get drunk." Ha ha. "I smiled at the fallout and said to Tong.

Tong is heavier than the fallout. He did not answer the fallout, and in turn asked the fallout directly, "How is it this time?" Are you tired? ”

The fallout one leng, can not help sighing, "Of course tired, every day running around, busy." ”

Tong looked at the aftermath, lowered his head to say: "Don't you think we have gone farther and further?" We are in danger now. ”

Tong See the fallout did not speak, directly go on, "This morning I have just handled the director of East China Station, his name has more than 30 employees in the air rates, there is no such salesman, but also holding the company's salary." As far as I know, there are still a lot of stations in this situation. This is the result of blind expansion. ”

After hearing Tong words, the heart is also a shock, "This is no wonder, I have been busy recruiting, expand the market, indeed neglected the management of the station." You handled well, such a thing, should find one, deal with a piece. ”

Tong still shook his head, "I think this method is palliative, not the root cause, should be from the source to find the problem." Now this blind expansion, resulting in vicious competition to buy the industry in the eyes of consumers continue to decline, consumer enthusiasm is also declining. On the other hand, businesses are spoiled by these group-buying sites because of the scramble for customer resources, which led to the initial design of a merchant-paid model that has failed to make it. We are losing money every day now, so the future is worrying! ”

The fallout nodded, looked a little ugly, "I also know that the current market environment is deteriorating, but, if not continue to expand the market, the consequences may be more serious, we may be 3 months, the longest 6 months will be forgotten by consumers, can only increase horsepower." Moreover, we have ample funds, many venture capital organizations have come to the door, I have confidence in the future. ”

Tong eyebrows, expression is very dignified, "I think you are too dependent on venture capital, we are witnesses to the brutal laws of Wall Street, the essence of capital is profit, now the uncertainty of the big environment is still increasing, and group buying has been hard to profit, how much money do you think can hit the market." We should be aware of the danger early. ”

Although the fallout agrees with Tong's view, but still more optimistic, "not as serious as you think, we have received 4 rounds of venture capital, now is the time to consider listing, once listed, money is no longer a problem." ”

Tong still wrinkled eyebrows, "listed?" Easy！ ”

Indeed, Liu was much more sober in the aftermath, and in a way, the purchase of a group is a logical death cycle: If you rely on rapid downsizing to cut costs, the purchase can be profitable in the short term, but as the market share of the purchase group is too dependent on marketing input, once the relevant expenditure is reduced, the market share of the purchase will shrink. The purchase group also lost the biggest chip on the market.

That conversation broke up, then, in the face of more and more radical expansion strategy, Tong chose to leave, a pair of entrepreneurial partners, this parted.

Soon after, the group buying industry in winter is coming, group purchase volume fell sharply, and began to appear negative growth, a large number of group buying sites have died. How to Hematopoiesis, how to transform into the top priority of group buying site. However, due to the initial strategic error, the purchase of the group has been unwieldy, now want to comb the internal structure has become difficult, the cancellation of the site, causing mass layoffs, so that the purchase of the group into a swirl of public opinion, hope to buy through the kind of blood, consumers are not buying;

Think of here, the aftermath of the long cold coffee, a sip, bitter, is indeed miserable.