Comment: 400 group buying sites how to survive a suicide venture?

Source: Internet
Author: User
Keywords Group
The opening of major group buying sites, almost all with the United States Groupon has a sense of déjà vu. "Group buying site, in China only just started", which has almost become the consensus of Chinese group buying site Mister.  The low cost of the site and the lure of Groupon in the capital market have created a stampede of entrepreneurial confidence. In fact, group buying mode in the domestic development is relatively early, commercialization of the most successful should be the fence net, when it relies on home market buy a sudden fire up. Since this March, when the US Web site copied the American Groupon model to China, Zhongguancun several entrepreneurs have launched the handle nets, F group, etc., in just a few months, domestic group purchase site has up to 150, most of the group purchase site is concentrated in Beijing, Shanghai, Guangzhou and Shenzhen and other regions,  There are people to do a group purchase site navigation, a netizen jokingly called "Hundred Regiment War." According to Analysys International statistics, the current domestic has been born 300-400 group buying website. These group-buying sites to imitate the unity of Groupon, known as simple, convenient interface settings, difficult to cover the "thousand people side" of the criticism.  After all, less than 20,000 yuan to build the station cost easily let people walk "shortcut".  E-commerce (electric business channel) predators, returnee management team, grassroots college entrepreneurs of the collective madness, so that Groupon point to buy the fire in China intensified. Fengxue The collective madness of a toddler "we actually pay more attention to the marketing ability under the line.  "In recent days, only months of operation of the" old "group buying site has made a high-profile appearance, trying to use the financing amount and expansion plan to prove strength. Recently, pull the net announced that the Jinsha River venture capital investment, the line less than three months, the company has received three financing, a total of 5 million U.S. dollars, the group announced the financing of 1.5 million U.S. dollars, 24 coupons also announced their access to millions of yuan in the second round of angel investment. "Did you raise money today?"  "The Chinese group-buying website, which is getting a lot of money, is ready to go under the power of capital intervention." The fierce competitive wrist is not only reflected in the amount of funding comparisons, they choose to expand their positions. After two months of fighting in the Beijing market, the United States, the network, handle nets, 24 coupons have begun to rapidly expand the second-tier cities.  Wang, founder of the American network, quietly set the target for the year to 20 cities, while 24 coupons and 5151 groups made no secret of their ambition to target 50 positions. "Now everyone is two or three months of baby, even if the traditional e-commerce predators to kill in, there is no absolute advantage," 24-coupon CEO Du Yinan This view of the multifaceted of the delicate situation of the group purchase site. In fact, Taobao's "poly-cost" has begun the attempt to buy business, and love to help the network with "Love Help Group" will come in.  In Du Yinan's view, these companies also need to go through Groupon model of Chinese exploration and baptism. Shou, an international analyst at Analysys, said that after the industry was integrated later, most of the sites were difficult to scale. But the future will be the Chinese Groupon, most likely to have a strong user resourcesTaobao and other E-commerce giants. Temptation College students to venture nearly 400 of the melee, hidden behind a variety of traders.  Returnees Du Yinan, veteran entrepreneurs Wang, posted on the "5151" team label is "junior students." A few days, group purchase website "5151 Regiment" cause junior students founder, and get up to more than 20 million yuan of venture capital, quickly become the object of media speculation.  This undoubtedly to the already overheated group buying website phenomenon added a dry wood, bring more university students envy and follow suit. But in the eyes of rivals, one has no entrepreneurial experience, no social resources of college students, "join the group buying site is tantamount to suicide", "How can you get 20 million of the venture capital"? Shou sent also that, although the entry threshold for group buying site seems very low, but it is not easy to grow and develop. "College students may have a higher computer technology, but there are obvious experience flaws in the development of client resources and the management of services." "Faced with peer questioning and analysts ' concerns," said Pan Wenwei, 5151, director of website operations, explained that although some members of their own and the team are really junior students, but not the general sense of college students. He revealed that he and his classmates have been in the social work in the past three years of experience, "has been a vice-president of investment companies, tea and other specific investment projects."  And it is the team's online software technology capabilities and online marketing service capabilities mature, only to attract a 20 million yuan investment. Pan Wenwei said that simply hanging on the label of college students ' entrepreneurship, the sizzling college students and group buying site Hook, is the media and social misreading. "I don't agree that college students with no job or entrepreneurial experience are involved in this area, and it's not enough to be proficient in web-architecture technology and mimic the Groupon interface."  Pan Wenwei said that with the expansion of business scale, 5151 groups also want to introduce new talent, but "also will not choose to have no experience of fresh graduates or students."  Group buying site Four "death spell" market "money" is a good view, but under the surface of the scenery, group buying site seems to be in a position to extricate themselves.  In a previous meeting of China's Internet webmaster, Lee Kai-fu, an innovation factory, revealed that the innovation plant, after Groupon's launch, gave it a six-month investigation and eventually abandoned the project at home because he was not optimistic about the future of the model in China. Lee's reasons are three points: first, low threshold, easy to be copied--as long as very little money can do group buying site, some college students also started to do this kind of web site; second, difficult to become large companies, profit margins are low, it is difficult to calculate can not achieve 100 million of dollars in profitability; third, business is difficult to get repeat customers  But for the sake of low prices, Chinese consumers are more concerned about low prices, so few repeat customers, and businesses will ultimately not be satisfied with this extension service. There are four "death spells" in the industry indicative China Group Purchase website, the same quality is too serious domestic group buying type website,Basically looks exactly the same as Groupon. More seriously, they are completely copying Groupon's group buying model, attracting users through low prices and attracting businesses through users.  Such competition will eventually become a melee of capital and resources, and it is hard to stand out from it without finding a unique business model. Second, the threshold is too low cost too high group purchase site rapid emergence, the most commendable point is to enter the threshold low, tens of thousands of dollars to find a few technicians can soon be done.  But because of the low entry threshold, the number of competitors will be huge, which means that the market will become a consumer market, because you need to spend more money to promote and win consumers, this part of the cost will be the cost of web development several times.  Industry analysis, if not enough funds and resources to support, it is expected that a large number of group buying sites will quickly die, this tipping point is likely to appear after six months. Third, viscous too low repeat customers too few domestic group buying sites are the main Low-cost model, most users are directed at the low price of this point.  If another site has a lower price, then users will be very easy to betray, although many group buying site through points and other ways to improve user stickiness, but this is still a group buying site can not avoid the pain. On the contrary, for businesses, the majority of users of group buying sites are directed at the low price, most people go home the first thing is to see what the next day to buy a low price. This means that the Low-price strategy of the merchant does not necessarily change to a loyal repeat customer.  After the freshness of the past, the group buying site will further reduce the attractiveness of businesses.  Iv. profit margins low discomfort capital favored for the current model is not clear domestic group buying sites, most of the capital conservative attitude. An industry insider admits that the profit margin is too low, is stuck in the group buying website throat a thorn. Suppose the merchant buys 100 pairs of jeans here, each earn 10 dollars also only 1000 dollars, want to offset operating costs are difficult.  You don't expect the business to offer more, because it's probably the more you sell, the more you lose. If venture capital investment 10 million, then according to the current group buying site, it is estimated that no five or six years will be difficult to recover investment.  And this is still smooth from more than 100 group buying site to break through the expectations, if it is directly in the competition, then the investment side of the money is equal to direct water drift.  Industry development encountered "labor pains", whether the site of the wholesale copy, or temporary market chaos, are an emerging industry in the early days of the ' pain ', Wuhan University of Information and Management college professor Shenyang said.  Some insiders pointed out that this swarmed momentum will eventually only lead to group purchase users of the diversion, in the next one to two years, the overall operating capacity of the site would be quickly eliminated, only a few sites will be popular, grow into group buying giants. Group buying site is a shopping platform, like a red line will be merchants and consumers together. And the most needs of group buying is customer resources and consumer trust, its core competitiveness is the lineSource integration. Lower prices, better quality products in attracting users to buy at the same time, can increase user stickiness, sustainable survival and development. Follow suit will aggravate market competition, elimination will be unavoidable.  One day a single model of goods and simple group buying business, so that the industry worried about the survival of the site model how long can be maintained? "No competitive group buying site will eventually be eliminated by the market."  "Rice Network CEO Sanli expected, not for a long time, in the dispersion effect, the group purchase site will need to use more cost to obtain revenue, marketing costs more and more high, and may even occur income does not offset the situation, will eventually eliminate the competitive group purchase site." The founder of Taishan Angel Foundation, Vice President Chen Liang has said that the last to survive, and the formation of a national group to buy the first echelon of the members of only 3 to 5.  He believes that innovative group buying mode, regional expansion throughout the country and the team's ability to manage offline marketing services are key to success.  Group Buy Navigation site Oriole is surprisingly, group buying site Frontline fighting is in the thick, a group of group buying navigation site quietly joined the war, even several of them said that has begun to engage in venture capital. 57 Group founder Gong introduced, he produced in the beginning of this year to do group buying navigation ideas, and in the United States after the launch of the network quickly online. He believes that users who participate in group buying will not rely on a certain group buying website platform.  Group Buy navigation mode the most valuable place is information aggregation, and each group purchase site can only do their own channel. It is understood that the navigation site itself will be through the technical means of real-time capture the information of the group buying site.  Also for group Purchase website Open Member registration platform, let it register on the platform and update the daily product information. Gong revealed that the key to do the navigation site is to start the cooperation with group buying site, "but at present there are many group buying sites in China, the variables are very large." Constantly have a new website online, but also some days on the exit, to the navigation of information updates bring a lot of difficulty.  Revenue, navigation sites to attract a large number of user traffic, you can launch revenue in advertising, but also consider vertical search bidding rankings. As for whether will be directly engaged in group buying services, he said, "to see the development of the group buying industry, it may be the first to engage in a cooperative approach."  It is reported that in order to expand the scale, Gong has begun to engage with venture capital institutions. Shou sent to believe that, relative to the crazy appearance of group buying website, the derivative of navigation website is let its natural thing. Groupon mode of "one day a discount" as well as a large number of group purchase sites, how to choose the right to buy their own products become a headache for consumers.  Savvy entrepreneurs are launching navigation sites that are easier to attract and operate at lower cost than group-buying sites. However, group purchase site dispute has not yet to decide, group buying navigation has to rely on group buying website development Trend to act. "After all the stability, there are more than 10 group buying sites and five or six group buying navigation sites occupy the market is most likely to occur." ”
Related Article

Contact Us

The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion; products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the content of the page makes you feel confusing, please write us an email, we will handle the problem within 5 days after receiving your email.

If you find any instances of plagiarism from the community, please send an email to: info-contact@alibabacloud.com and provide relevant evidence. A staff member will contact you within 5 working days.

A Free Trial That Lets You Build Big!

Start building with 50+ products and up to 12 months usage for Elastic Compute Service

  • Sales Support

    1 on 1 presale consultation

  • After-Sales Support

    24/7 Technical Support 6 Free Tickets per Quarter Faster Response

  • Alibaba Cloud offers highly flexible support services tailored to meet your exact needs.