Group Buying Model Curve Evolution: Local Service Share Highlights

Sheng Shanghai reported that over the past one months, high-peer layoffs have been noisy uproar. August 21, a part of the staff of the deputy Lawyer Zhao occupation in micro-blog revealed that "the current number of people have been cut to exceed 400."　　But this figure has not been confirmed by high friends.　　Just have to marvel at the rapid changes in the world, the high profile in China before the High-profile, high-paying and large-scale recruitment of the news has just happened. Like MySpace, ebay and other in China, the encounter of high Friends is also interpreted as a foreign monk read bad.　　This makes Groupon's IPO more interesting and even raises doubts about Groupon's China strategy.　　But is this just a question of the localization of high friends?　　Group buying layoffs: who is going to pay for madness? Gaobong is ambitious in China and hopes to take the top spot in the Chinese group buying industry in a few months.　　reported that from February 2011 to date, it has been in more than 120 cities in the country to open a substation, employs more than 3000 people. At this point, the high friends uphold the mantle of Groupon.　　Groupon was founded in 2008 and has more than 4,000 employees by the end of 2010, covering 565 cities worldwide and becoming the fastest growing Internet company in history.　　In China, fast also almost become the unified expression of all group buying websites. Handle Network CEO Wu that the characteristics of group buying is fast. At present, there are more than 170 companies in the direct-handle city, with more than 5,000 employees. Wu recently unveiled the "Thousand City Plan" of the handle, which is aimed at the 四、五级 city, covering 1000 more cities before the end of the year. "The reason for the rapid expansion was the stimulus of Groupon," Wu said in an interview with New Century Weekly.　　"And according to the public data, the United States, full, litters Regiment, and so on, staff size also in thousands, litters Regiment has reached 5500 people, litters group of the number of stations also have more than 150." The Groupon prospectus shows that in 2008-2010 its revenues were 94,000 U.S. dollars, 30.47 million dollars and 710 million dollars.　　But the prospectus also tells people that three years, Groupon's operating costs are as high as: 1.64 million U.S. dollars, 12.01 million U.S. dollars and 700 million dollars.　　Whether it is Groupon's loss, or high peer layoffs, in the glutinous rice Network general manager Shenboyang, "are too impatient, all of a sudden put the stall too big." In coincidence with this is the high peer network COO (Chief Operating Officer) Ouyangyun explanation.　　August 23, he broke the silence, said to the media, high friends this layoff is "strategic adjustment, hope to deploy more troops to the medium and large cities, because large and medium-sized city group buy development conditions more mature." In fact, Gao Peng is not the first "slimming" group buying site. U.S. group Network Vice President Wang Huiwen recently revealed that the United States Regiment voluntarily closed the four cities of the station, because, after statistics and forecasts, for two years did not have enough to buy a consumer market city, the United States will suspend the extension of the networkExhibition plan.　　According to reports, the previous period of happy group purchase, handle nets, litters regiment, etc. have "slimming" action. Both Wang Huiwen and Shenboyang believe that the next group buying industry is sure there will be substantial layoffs. In addition to personnel, there may be a reduction in advertising.　　Wu revealed that after the end of the current round of advertising, suspend the advertising campaign. Evolution One: The Local service share highlights a low discount local service every day, which is Groupon's business model.　　According to the prospectus, groupon91% 's deals come from spas, hair salons, restaurants and other services. In the 2010, the model was copied to China and improved by Chinese entrepreneurs.　　In addition to group buying local services, they have set foot in the kind of group buying, showing goods and services "mixed" state.　　But at present, eat and drink Local service in group buying industry status gradually stable. According to the Regiment 800 of the statistics, December 2010, only clothing luggage category of physical goods accounted for the total sales of 20%, while cosmetics and health products accounted for 7%. July this year, group buying industry boutique group Buy (kind Group) ratio of 17.11%.　　Analysys International data also showed that in the second quarter of this year, according to turnover, local Life service category group purchase accounted for 82.7%, merchandise and beauty makeup Two physical category total 12.2%.　　In the Group of goods or group services, the context of group buying industry is also gradually clear. For example, the Wang of the American Regiment believes that do the kind of group buy site and Taobao and Jingdong Mall compared with no competitive advantage, local service group Buy is the new opportunity for E-commerce; Litters CEO Xu Maodong has also been adhering to the local Life service area, and said, "Only life service consumption, the most in line with the nature and characteristics of group buying"　　, full and public comment network has been the main local life service.　　What can be corroborated is the data of the Regiment 800: in July this year, the 10-strong website of Chinese group Purchase, the United States, the public comments network and 58 Group of local service products sales in the month's total sales accounted for more than 90%, full, litters group, tick Group and F Regiment in 80%-90% respectively. Interestingly, Groupon, the originator of the group buying model, seems to be copying the Chinese model again.　　TechCrunch, the US science and technology blogger, wrote that Groupon intended to reach out to "local service", offering daily necessities and other commonly used online purchases. Group buying mode curve evolution due to the absence of geographical constraints, physical groups to buy compared to local services more easily out of scale.　　glutinous Rice Network general manager Shenboyang now does not object to do the kind of group buying, but he stressed that the kind of purchase after the sale of the problem is huge, so in the glutinous Rice logistics, Courier has not to keep up with, to control the proportion of physical group purchase, but also to strictly regulate the quality. The key is, if the self-built logistics, courier to do kind group purchase, and Jingdong, when and what is the difference?　　Can it be compared with Jing Dong? Evolution II: Integrated Marketing Services GrouponSeems to be walking a "growing loss more serious" path: from 2009 Q1 (the first quarter, the same) to 2011 Q2,　　Groupon's quarterly revenue rose from $250,000 trillion to $878 million, but Groupon continued to lose money over the same period, and the net loss was a geometric growth that Q2 a net losses of $102.7 million this year.　　"Group buying mode is not a problem", Shenboyang that Groupon is encountering more and more strong opponents, marketing investment rise, on the other hand, the pursuit of high growth of Groupon and continue to expand, team size rose, pushing up the operating costs.　　The situation is likely to be even worse in China, where thousands of sites have already made the industry's margins below 10% per cent, with Groupon's gross margin at least 30%. Han Li Capital Chairman Qian Cofeng said, group buying also jumped out of the internet World "winner-all" and "left" the king of these two laws.　　For group-buying sites, the thorny question is how to turn on the track of buying this spell, advertising and scale. In addition to group buying, full now is also for local businesses to provide reservations, reviews and other services.　　Feng said that the current full 70%-80% of the revenue from the group buying business, a small number of businesses through the provision of marketing solutions, advertising and other ways to obtain the proceeds. Glutinous rice is also trying to buy more ways than buying. For example, they set up a special coupon channel, but also launched in Beijing real-time group purchase, that is, consumers buy the same day consumption, the advantage of this way, businesses can initiate self-help group purchase, better control of passenger flow and inventory.　　Next to glutinous rice is also ready for consumers to provide customers with the business Comment service. "In the long run, if the group purchase site to win, in addition to the traditional group buy well, but also to open up more new models."　　"Shenboyang said. In fact, Groupon is doing the same.　　For example, Groupon has been working with location-based service provider Foursquare to try to get more information from users through lbs (location-based services) to help marketers achieve precision marketing. According to COO Ouyangyun, the future does not rule out the introduction of Groupon's LBS products into China. In addition, he stressed that his personal focus on the field of innovation, pay particular attention.