Group Buy first year to achieve profitability has been recognized by the industry as a burning money industry group buy

Group Buy first to achieve full-year profit

The industry has been recognized as the "burning money" industry group buy, is tearing off this label. U.S. network CEO Wang yesterday revealed that the United States group net turnover is expected to reach 16 billion yuan this year, will be the first year to achieve profitability. The United States Group NET to achieve annual profit, to a large extent also reflects a group-oriented online service industry huge development space, but whether the annual profitability is still to be seen. In the industry, for the group buying industry has been eyeing the bat (Baidu, Ali, Tencent), is the group buy big guy real threats and concerns.

Industry as a whole warmer

"Last November, the U.S. network began a one-month profit, the year four quarter to achieve quarterly profits." This year, except for a few months, the rest of the time to achieve a monthly profit. "In Wang's view, to achieve annual profit" is mainly due to the group buying industry and marketing costs accounted for the decline in the proportion of income.

According to the group's 800 data, the average monthly user in 2012 was below 40 million, and users up to November 2013 had risen to 60.215 million, up 69.1% per cent year-on-year. Turnover reached 3.79 billion yuan, up 102.7% per cent year-on-year.

From the industry point of view, the United States Group Network is not the only beneficiary of this positive factor. Litters group Related people told the Beijing Business newspaper reporter, "from last December, the litters group has been continuously profitable." Although Wang revealed that the U.S. mission net profit scale is only meager profit, but handle network senior advisor Si Ying to Beijing business newspaper reporter Frankly, "This is a good for group buying industry, handle net for future prospects are also very optimistic."

Profit or scale?

Group 800 analyst Kangkang said, "for the first camp group buying site, more should be willing to profit, in the profit and further expansion between the scale, which need to choose between the profit and scale expansion." O2O analyst Huang that "in order to achieve profitability, the United States network to a certain extent also made sacrifices." Last year, the United States network said that the target sales of 18.8 billion yuan this year, but this year's total turnover estimate is only 16 billion yuan.

Analysis from the North Business Research Institute shows that in order to ensure profitability, group buying enterprises are no longer blind expansion, but rational focus on profits.

According to group buy navigation 800 new data show, November domestic group purchase turnover of 3.79 billion yuan, the United States network, the public comment Group, litters group turnover of 1.728 billion yuan, 1.021 billion yuan and 336 million yuan, ranked the top three in the industry, in November market share accounted for the entire industry 81.4%.

The real threat is coming.

"The profitability of the United States network, to a large extent, also reflects a group-oriented online service industry a huge development space." "In the view of the industry, in addition to the huge space of online preferential market, the offline service market opened by group buying is the new blueprint for development."

Kangkang that, "the United States network in the industry's first camp, and leading the larger." This also partly reflects the ' BAT ' online service industry backstage, Ali in the O2O field has made a temporary lead. With the micro-letter led micro-life, high friends and Baidu map, navigation and glutinous rice, the integration of the end of the line around the service industry will be more intense competition.

In this respect, Wang Also, he bluntly, "group buying is still in the rapid expansion stage, the industry is still profitable or not with the industry competition, in the ' BAT ' has not fully entered the full force, to maintain rapid growth is still the most important thing."