Save the group: Survivors of The Hunger game

The intermediary transaction SEO diagnoses Taobao guest stationmaster buys the Cloud host technology Hall

Chinese group buying industry card finally to wash, the game finally play to the last pass.

Once the biggest group purchase website handle NET founder Wu was the investor overhead, resigned the CEO position, the investor began to control some departments. "The Wu character is soft, in the financing process, the discourse power is weakened gradually." A person close to the handle said.

At the beginning of August, F Group and senior Friends formally merged, the new company named "Snare The World", the original F Group CEO Rynning new company CEO. According to Tencent insiders, Tencent led the merger. Tencent has invested in Group F, and Groupon and Yunfeng Fund to participate in the establishment of high friends, F Group and high Friends is to a large extent Tencent integrated decentralized group buying resources, QQ Group will also be integrated into the merged new company.

"It's obviously the capital side's push, because it's 1+1<2 for group buying sites," he said. "Group 800 founder Hu Chen evaluation Way. Sure enough, there is news that the high friends only retain part of the sales of 4 cities, leaving less than 100 employees (peak once reached 3000 people), Gao Peng, a large number of technical, administrative, financial and other departments have also carried out large-scale layoffs.

Last year, the large-scale expansion of group buying sites, spending huge sums of publicity and hype has long been no longer, has invited GE as a brand spokesperson in the first-line city Subway, bus station, television media to carry out the advertising battle of the handle network, now also stopped advertising. "All of the delivery stopped, the net shopping to mention the most important place, these things together to do the end is that in the local life services on the handle has fallen out of the top three." "Hu Chen said.

Handle is China group buying industry's best reflection case, the financing of more than 160 million dollars, was once the country's largest group buying site. Rely on the frenzied expansion of capital, the use of propaganda to quickly obtain consumers, in an attempt to quickly do large-scale post-IPO. After the failure to start the IPO at the end of last year, the savage growth of the ills began to be exposed, and the investors began to resent and meddle in management, leading to the founder's exit.

According to the group 800 data, China's current number of group buying sites less than 3,000, the peak last year had 5,000, less than a year to eliminate 40% of the players. Yi View analyst Shou sent that after two years of competition, resources gradually mastered in the first few hands, the market concentration will be further improved, the future can survive only 1 to 2.

After the brutal elimination, the surviving website will gradually pick up the right to speak, Maori will gradually lift. And gradually mastered a large number of user databases, precipitation down can reflect the value. "An investor who has inspected the group buying industry said.

The key now is how to survive.

Hunger Games

For businesses to provide promotions, to provide customers with discounts, and group buying site itself has a good cash flow, the ideal group buying mode from the beginning of the initial acquisition of entrepreneurs and capital of enthusiastic pursuit.

2010 There are a lot of small group buying site, a technology, a backstage, a do art, film write copy, a run sales, each month can have 200,000 of the flow of revenue.

According to the data, from the beginning of 2010, the total amount of group purchase investment is about 500 million U.S. dollars, in addition to well-known investment institutions such as Sequoia, Jinsha, Ding Hui, and some Shanxi coal bosses also participate in group buying investment. "Almost 50 of the first group buying sites have got VCs. "A group buying site in the middle of the introduction.

Shou sent that the capital is the basic driving force for the rapid outbreak of group buying industry, if there is no capital, there is no rapid outbreak of group buying industry last year. "Capital is profit-seeking, hoping to be rewarded in the shortest possible time." ”

"A lot of people are thinking quickly to go public in the United States, so be quick to scale up and even make money to rob customers, including throwing so much money into the ads." This is to go public play, investors value indicators is not profitability, but upstream how many suppliers, how much sales. Said an investor who declined to be named.

Get the investment site to quickly build brand, happy enclosure, the business area from the north and other first-tier cities to expand gradually to the two or three-line city, build hundreds of local stations.

Groupon, the originator of the group buying industry, has a hefty 50% interest rate in the US, and in China so many people flocked to the Nuggets to buy the industry's gross profit margin less than 10%, the most fierce competition in 2011 from 7 to August, group purchase site's gross profit margin of only 1% to 3%, some sites in order to rob businesses or even put up money to get a single.

The 25-dollar golden-million roast duck package was sold 5,000 in 5 minutes after the online purchase. The most popular time, in the golden million roast Duck Conference room, 5 group buy the website of the sales side by seat on the sofa, if you want to work with the golden million, sit on the sofa on site to sign, not change. A Shanghai group buying site flew to Beijing to find gold million, would like to paste their own 5 yuan, so that the million in their own website to 20 yuan selling price, when gold million suspicion this headquarters in Shanghai, the site of Beijing users too little, not willing to cooperate.

"Why would you want to burn the money like this?" because the group buying website thought this money also is not my, this money is the VC money, I want is the scale. "Hu Chen said.

The investor who inspected the group buying industry eventually did not have a vote on the site, he explained, "the industry is unhealthy from the start, and there are irrational places for entrepreneurs and investors in the early melee." ”

Last year group purchase site sales to sweep the form of street one by one to break the merchants, handle part of the sale of the former housing intermediary. "There were 5,000 websites at most last year, even if there were only 10 sales per website and 50,000 people, the competition was very fierce, and I told my team that you had beaten 49,000 people to win an order." Litters, general manager of catering division, told the global entrepreneur.

Under such a fierce competition environment, some unconventional means have been spawned.

A roast lamb leg shop in Beijing a price of 100 yuan lamb leg, in the domestic famous group buying website lobbying, asked it to 50 yuan price for sale. Roast lamb Leg Shop The boss replied that there is no way to sell this price, the cost is not supported, the idea of the website is to give water to the leg of the lamb, add some cold dishes together as a package, the cost down. #p # subtitle #e#

Low price immediately pulled up the order, some orders too hot, and even the consumer two weeks can not be placed in the position of the situation. But after a big discount on the purchase experience, consumers gradually at a respectful distance. The typical evidence is that in the past, catering can account for 70% of the proportion of group buying, now only 40%.

The consumer experience is not satisfied, the merchant is also dissatisfied. Liangzi has done two-period group buying, and then gave up, because the group buying users are the ultimate demand for a group of people, and even buy users to the shop to take out the toilet paper.

The practitioner described it as a hunger game similar to the food scramble, which was accidentally shot down by competitors.

The more dangerous signal is that Groupon, a copycat of Chinese group buying sites, has fallen sharply after the IPO, with a market capitalisation of just 1/3 of the initial market. Jose Ferreira, founder of AOL Education Enterprise Knewton, even questioned Groupon as a Ponzi scheme. He thinks Groupon's businesses don't have the data to prove they'll be buying again, and Groupon hasn't disclosed that figure. So it is not clear whether the business can be long-term cooperation.

Buy can not with upstream merchants and downstream consumers to form a strong relationship between the defects began to appear, how to solve?

Groupon's new idea is to build a local business operating system. According to the idea of Groupon founder Mason, Groupon will be fully integrated into the trading links of local businesses.

Groupon, for example, has launched a product with hardware maker Infinite Peripherals, which allows users to use credit cards directly via the plastic swipe card attached to the ipad.

"If we build an ecosystem that allows local businesses to run within their businesses and connect with consumers, it will be a sizeable business." "Mason said.

U.S. team vice President Wang Huiwen that this is a step forward for Groupon, to build the operating system for businesses, and to achieve the docking of group buying sites, can enhance the consumer experience, such as online booking. And so Groupon will be closer to the business.

Hu Chen that the model is hard to replicate in China. Chinese restaurants often do not like their own financial system data loss, and the financial system is often ufida or Kingdee software, if the group buying enterprises put their hands into the market, Ufida, Kingdee is not willing to. "We started with the idea of copying Groupon, but if we still follow it today, we're dead." Chinese group buying sites must find their way out. "Hu Chen said. A big move to save the group-buying model has begun inside China's various group buying websites.

Live

In the first half of 2012, the total number of Groupon users remained at 40 million. Encounter the ceiling group buying industry began to look for a new way out. And so far this year, in addition to the group buying business in the public comments received 60 million of dollars in investment, there is no other disclosure of investment events.

Litters Group founder Xu Maodong believe that group buying is a river, business cooperation after a few days to leave, users spend a few times also no longer consumption. "Whether it's a user or a business, it's like flowing water," he said. "The litters group wants to do is to change the status of group buying as the river, to become a lake, so that businesses and users can stay in the long time."

1 years ago Xu Maodong was the founder of the group that was thought to be the most likely to abscond, when all the people wanted to see how he could turn the litters group around. Quick success for the market after the big aggressive, Xu Maodong finally calm down think "river" problem, fortunately he thought of a can survive the killer, namely: litters last year launched Litters Mall.

Litters Mall Vice President Guan Yu told the "Global Entrepreneur", litters Mall in the positioning of the site to make a clear division. "Group buying site is the obligation, providence, by low price to win, litters mall more like the line Wanda Plaza." ”

Positioning differentiation can be reflected through the design of Web pages. LAN Club, South Beauty and other brands will have a separate page as a store to display products, and group purchase site highlights discount ratio, litters mall on each product is a brand predecessor, weakening the discount ratio, highlighting a single brand.

Last year, when the team to find LAN club communication cooperation, LAN club a listen to the site, the slightest show interest, later on the Orchid club promised, "will provide a completely different service." ”

Guan Yu directly with the Orchid Club Deputy Yang interviewed realized that the orchid club such high-end positioning of the merchant, excluding the network marketing, but the low price discount will affect the brand positioning. In order not to affect the Orchid club brand positioning, product pricing strategy and previous group purchase site strategy is completely different, even up to 29,000 of the 6-hour Chang Buffet package.

Litters Mall and LAN club cooperation negotiations up to 1.5 months, far beyond the previous time to do deals with the merchant negotiations, "the previous afternoon to talk about 3 to 4." "Guan Yu said. At the end of the negotiations, the litters Mall recognized the value of it, signed an exclusive cooperation agreement with litters last October, and set the cooperation time for one year.

Litters Mall in the product design is also more refined. For example, in the cooperation with Qiao Jiangnan, found that most of the shops in South Beauty Jiangnan in the business district, the weekend traffic will be much less than the working day, so the South Beauty package product time design at the weekend. In the Orchid Club store, there is a specially designed 49.9 yuan afternoon tea products. The southern beauty of the weekend package and Orchid Club afternoon tea, are litters in order to make great use of the restaurant's unused resources of the design.

About the Lantau, litters Mall in the design of products, can clearly see the potential user group. such as South Beauty has a price of 6888 yuan five table meal, the target buyer is working in Beijing, married non-Beijing lovers, the main wedding in the Home Office, in Beijing fete family and friends when five table package is the most appropriate choice. South Beauty stores in the Litters Mall online three months of sales have exceeded 10 million yuan.

Litters Mall has more than 30,000 long-term contracted businesses, litters Mall model not only with the business to maintain long-term cooperative relations, but also through the brand to attract consumers. Because the discount range is lower than the group buy product, litters Mall product gross margin will be higher than the group buy products.

Litters Group Chairman Special Assistant Yeung told "global Entrepreneur", litters mall accounted for the proportion of the entire sales has reached 40%, the future purchase and mall sales ratio will be 1:10. "In the long term we will be divided into several different product combinations, the top layer of the store is a group purchase order, it can be a low discount to attract passengers to its shop." In addition, coupons, vouchers, special orders, thus forming a combination of different marketing tools. ”

The first half of this year has been leading group buying industry, the United States Group network, but also in the search for a new survival law, but compared with the litters regiment, it is completely another way of thinking. The group decided to focus on consumer satisfaction, leveraging IT systems to improve efficiency and reduce operating costs.

American Group founder Wang on Weibo posted the U.S. regiment July single month turnover of more than 500 million yuan, group purchase navigation site Group 800 founder Hu Chen According to the United States Regiment of traffic and turnover calculation, almost every day to visit the United States network of everyone will consume 10 yuan, such capacity is almost 1.5 times times the peer. The American Regiment, the survivor of The hunger game, is trying to make the final pass.

American Group Network Deputy Wang Huiwen introduced, buy is a two-way market, the more merchants will attract more consumers, the more consumers will pull more merchants come in, this is a process of circulation, just as the consumer-to-consumer market. Consumer-to-consumer market only three can survive, and into the cycle of Taobao is absolutely king.

In the same number of businesses and consumers, two key indicators can measure the strength of group buying site, one is the conversion rate, that is, how many consumers are real consumption (that is, Hu Chen mentioned capacity), the United States Regiment is 1.5 times times the peers; the other is the retention rate, measured by how long businesses and consumers can work with you, The key to determining retention rates is the degree of consumer satisfaction. So we make judgments that consumers decide to live or die. "Wang Huiwen said.

This is also the United States network positioning the consumer in the first place in the deep reason. With clear positioning, all decisions are made around improving consumer satisfaction. The United States in March 2011 The first launch of the "Expired Refund", "7 days of No consumption refund" and "consumption is not satisfied, the U.S. regiment on a single" "Buy Worry-free" service, set up the industry's most stringent consumer protection system. As of March 2012, the United States Regiment total expired refund of more than 78 million yuan.

"The cost of the refund is not high, unlike the electricity quotient, the reverse logistics cost of the electric dealer as high as 2%, we do not, refund need to increase the transaction costs." "Wang Huiwen introduced. The United States has increased the cost of lower costs, but greatly increased the trust of consumers.

In order to avoid consumers to the business phone does not cause the consumption inconvenience, the United States Regiment set up a 300-person call center. At the beginning of August, our correspondent in the United States Group call Center to see the main screen, call on the rate of 99%, the queue volume of 0.

Before the US group buys the list, all cooperation merchant must pass the Quality Control Department strict 8 audit, strict screening can guarantee the quality of each purchase order on line; After the consumer buys, the American Regiment net will also let the consumer appraise to this consumption, put forward the system of the 5 cent system that after consume, let the consumer have the discourse right, and feedback their opinions to the merchant in time.

Wang Huiwen Introduction, the U.S. Regiment quality Control department will be based on experience to cross-examine businesses to see if there is a hidden compulsory consumption. For example, in the review of wedding photography orders, the United States Group will ask "whether the need for the bride's own hidden underwear", "in the wedding photography shop to buy hidden underwear price" Such a detailed question.

The United States Group will be through the consumer 5 rating system to screen businesses, less than 3.7 points of business will no longer cooperate.

The group has done a series of solid measures to improve consumer satisfaction, but also brought some unexpected returns. Before an investor in the U.S. mission, the merchant and consumers did a very detailed research report, found that the United States Regiment 70% of the brand communication relies on Word-of-mouth. The United States group has never played offline advertising, in the peer spending a huge amount of publicity, the United States Group felt a lot of pressure. "For example, when we talk to businessmen about cooperation, there is no standard to judge which site is good, can only be judged by offline advertising." Wang Huiwen said the group will only do some online and social media marketing, but also word-of-mouth spread, but these businesses are not aware of.

Wang that to improve the efficiency of matching between consumers and businesses, there are two more places to improve, one to have more data and the other to have better algorithms. Data is the basis of everything, and accumulating data requires a lot of work, including automation, human and user submissions.

With more than 100 engineers and product managers in the United States, the internal IT system is a powerful force to support the operation of the entire business system. Group Purchase website Financial data volume is very large, the United States Group internal financial audit system is the internal engineer design system. Prior to the United States Regiment station contract audit did not have a unified system to do, is point to point to submit audit, and then the United States Regiment to build a contract audit system, all stations upload the contract will be in the system queue claim, the system set up, the United States team contract audit efficiency has been increased by one times.

The American regiment has a little consensus with the litters group, the way to save the group buying mode is that they are creating a platform for localization services E-commerce, they believe that the Internet of local businesses is irreversible trend, only the catering industry market is more than trillion, if only 20% of the proportion is through the Internet platform Sales is also a huge market. And in the dotcom wave of local businesses, they believe they will be born with a scale-like Alibaba.

What is the ability to become an e-business platform for localized services? Wang's summary is that Alibaba business-to-business sales capacity + Taobao online operating capacity + Baidu technology platform capabilities. This is also the ultimate ability to complete the hunger game, group buying is no longer a simple low-cost intermediary, live to buy will be the entire Internet strong.