American group profit behind: Group purchase is not equal to O2O winners

December 30, 2013, the United States Group Network sales Vice President Yang through micro-blog released a title titled "The United States into the 2 billion era" and attached to the map, the United States Group NET merchandise Group purchasing Director Zhang Zhiyong forward micro-blog and replied to a "my goal is to break 2 billion of the commodity alone." Outside of this 2 billion-month deal, Wang said in an interview recently that the group had been making a single monthly profit from last November, and that this year, except for a few months, the rest of the time was profitable, with 2013 achieving full-year profits.

One-month turnover of more than 2 billion, and achieve annual profit, the United States Network in 3721.html ">2014 years before the end of the release of the news shows the muscle, let the United States network once again exposed to the spotlight." American Group Network CEO Wang that the main credit to achieve profitability due to the group buying industry and marketing costs accounted for the decline in income. And Pugo that the United States network sales capacity, technical product capabilities, marketing capabilities in the group buying industry in the lead, which is it can "alone" reasons. 2014, the United States, the network or occasion to the United States listed. Of course, although the United States network performance is obvious, but the target of 18.8 billion yuan at the beginning of the year did not complete, group buying mode upgrade O2O is not easy, the United States Group Network 2015 100 billion, the goal of trying to become a giant is even more difficult.

The reason behind the American regiment's "Being Alone"

The United States network has achieved good results, in Wang's words is because the group buying industry and marketing costs accounted for the decline in income; but this does not explain why only the United States network can "alone", the United States network strong sales capacity, technical product capabilities and marketing ability is the reason for its success.

Sales capacity, since the end of 2011, Alibaba vice President Canga Wei joined, U.S. network sales capacity, Canga Wei in Ali for more than 10 years, for the team sales and management has a wealth of experience to make up for the Wang Wang Huiwen and other people in this area, to the current United States network of Sales personnel single effect leading the other competition.

Technical products, Wang and other people are technical background, their own technology and products have a good understanding, and attaches great importance to this respect, from Wang many times external emphasis on "technology-driven" can be inkling. Since its inception, the United States network began from the major Internet companies to identify technology products, as a start-up company to pay high wages everywhere to dig horns, courage and determination is very large; The current product experience of the United States network has far more than other group buying peers.

Marketing, the United States network very good use of Wang for CEO marketing, Wang's experience makes it in the younger generation has a wide range of well-known, rhythmic out of the mirror or exposure so that the United States network can maintain a good positive image, peer investment in a large number of advertising time-consuming United States network can save the advertising costs into other areas.

2014 or occasion to the U.S. listing

The first thing to be clarified is that the turnover of $2 billion is not revenue 2 billion, which is about 100 million per cent of the average 5% of the American Regiment, and that the actual turnover is likely to be less than 2 billion, given that there will be a portion of the 2 billion turnover that is at any time withdrawn or expired. But even so, the United States Network one month breakthrough 2 billion, this whether it is the Chinese group buying industry or the United States network itself are significant, the United States Group network or due to good results in 2014 occasion to the United States listing.

Groupon, the originator of the US group purchase, rose more than twice times in 2013, and the group is now at a disadvantage in terms of revenues, but it has started to catch up with Groupon on its turnover. In the third quarter of 2013, Groupon's turnover (Gross Billings) was 1.34 billion dollars (RMB 8.1 billion yuan), the average monthly 2.7 billion yuan, the United States and its network and its gap is not far. Given the stagnation in Groupon's trading volume, the group is expected to surpass Groupon in terms of turnover in 2014.

And Groupon long-term losses, the United States network in 2013 to achieve profitability, as long as the 2014 years to maintain a relatively fast growth while achieving break-even, then the United States network will give the capital market enough confidence. Even by revenue, the 2013 U.S. network revenue of about 1 billion yuan, has exceeded the threshold of the listing, to 2014 revenue reached 2 billion is not too difficult. In addition, in the future of the mobile end, Wang revealed that the United States network 65% of the turnover from the mobile side, and Groupon around 40% of the transaction volume from the mobile end, the United States network has a certain advantage, very good story about mobile internet.

The next step is the ceiling or 100 billion?

Despite the 2013-year goal of not completing the 18.8 billion-dollar target, Wang said the short-and medium-term goal of 2015 's 100 billion yuan turnover will not change. Given the 16 billion to 100 billion only two years, the possibility of achieving this is already very small. For the United States, 100 billion of the target may be just a propaganda strategy, whether the real implementation is not the most important. Even if it is 500 or 60 billion, the numbers are strong enough to impact.

At present, the United States network in two areas exerting force, one is "rural Siege City", at present, the United States network in the two or three-line city advantage is obvious, but in a number of major cities have not yet become the market first, the second half of 2013 began the United States network has been in the focus of the major looting north and so on a first-tier city, it faces the opponent is the public comments, The 2014 scramble will be intense. The second force in the American network is vertical ploughing, except for a cat's eye movie that has been operating for some time. The United States Group Network is currently in the promotion of the "American group Restaurant", where the takeaway business has been operating in practice; In the future, the United States will be cut into more segments of the network, trying to rely on discounts to attract users of the purchase mode to upgrade into a real O2O mode.

The next development of the United States network, the face of the competition will no longer be group buying peers, and bat competition will be inevitable; "Buy the remainder" may not be able to become "O2O winner", the United States network will face the competitive pressure is far greater than the front and buy peer competition. On the way to become a giant, the United States network only spent a successful childhood, and the current series of brilliant results are not smooth, the United States network will face the failure and frustration is likely to be everywhere.

Of course, the United States in January 2014 will move to the new single building office, and rumors of the United States network has been in the south of the beautiful place to choose a place to build research and development center. At least for now, the United States network of their own confidence is very good, and Pugo also sincerely wish the United States network can rise to become the O2O domain giants.

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