China buys more than half of the casualties, can see the spring coming?

BCC network Beijing March 30 News (reporter Tong) according to the Sound of economic reports, as of the end of March this year, China group buying industry just two years old. And the heyday of the five thousand or six thousand, compared to the current group purchase site has been more than half of casualties. Is there spring in the future?

In the spring of March, the two-year anniversary of the group buying network was still alive. Tick founder song is also preparing for the two anniversary, but the mood is much more complicated than it was March two years ago.

March 2010, Song left Google China, joined the Love network responsible for group buying projects, then the United States network, handle nets and other large group buying sites have also emerged. In a fiery, song soon set up his own "tick".

Song: So we're late, this pattern because of its diversity, its regional, it's not going to be a winner-take-all model, so we have a chance at this point.

In the spring of 2011, money poured into the group buying industry. 24 Coupons to get tens of millions of dollars, handle nets hand 111 million U.S. dollars, the capital to drive group buy crazy speed, so now song also issued too conservative feeling.

Song: We think back, we may be conservative, because we did not think that people are so fast development speed, so fast financing speed. The original idea was that we would have to spend 1.5 of the time before we needed a second money.

Ruzenwang, director of the electronic commerce of the arrogant, said the whole industry was arrogant.

Ruzenwang: The industry's words are, of course, fanatical, and are considered to be a subversive revolution in E-commerce.

In order to first cover more merchants and users, each group purchase site eight, played a "crazy trilogy."

First episode: Crazy ads. Ruzenwang describe group buying in advertising hit money is simply gouging.

Lu Wang: In fact, China's Internet advertising price is to hit up, there is no way to return to the original level, the whole e-commerce is a very negative thing.

The second part: crazy digging people. By July 2011, the number of employees on the first-line group-buying site exceeded thousands, leading to a rise in human costs. Song that this has killed a group of people.

Song: In order to faster development, high pay to dig people, but its enterprise is not long-term, ability to release, the release of customer resources, and dismissed. It's bad for the industry, especially for young people.

The third part: crazy money burning. In order to rob merchants to cooperate, the proportion of group purchase site is less than 10%, and even pay money to businesses, sounds ridiculous things in the last summer is everywhere.

With the "Crazy Trilogy", the Chinese group buying industry's gross profit from 20% quickly slipped to below 10%, the crash was imminent.

In the summer of 2011, group buying sites were as hot as the weather at the time, reaching more than 5,000. But with the ebb of capital, group buying industry plummeted. August High-PEER network emergency layoffs, September, many small group purchase website stop operation; from October onwards, the capital chain break, layoffs and other news, there are businesses even because they can not get the arrears rushed to buy the site of the office to raise character debt.

In this respect, Hu Chen used two consecutive "unexpectedly".

Hu Chen: What I didn't think of was that on the Internet, those group buying sites on the PC Web site would decay so fast;

Now the number of group-buying sites has been killed and killed more than half, and nearly thousands of group buying sites face closure or transformation. Ruzenwang believes that group purchase may not live to three years old, a very important reason is the current attitude of the VCs.

Ruzenwang: It will be cautious when investing, and another is that it has a very small selection, it found that its choice of companies with high valuations, it is no way to reinvest, this year will explode the whole industry crisis.

But Hu Chen is convinced that group buying can live healthily.

Hu Chen: Group Buy We believe that it in each of the key consumer cities have its growth space, but this space fell to several different group buying station, become the main force.