Group buying craze receded, litters group can sprint success?

Does anyone remember the litters regiment? Following the failure of the 2011 IPO strike, the litters group again submitted an IPO application to the US Securities and Exchange Commission, which plans to list on Nasdaq. It is understood that the litters group listed to raise 40 million U.S. dollars, but this may only be a placeholder. Industry personage Analysis said, after the Thousand Regiment war, as one of the survivors of the domestic group buying website, the litters Regiment is not bright eye, this action really unexpected. But now buying spree has receded, litters group can sprint success is still the future difficult to material.

A 40 million dollars is just A placeholder?

Litters Group prospectus shows that the litters Group IPO plan financing amount of 40 million U.S. dollars, and just last month, the market has burst the public comment network and the United States network has been 800 million U.S. dollars and 700 million U.S. dollars of sky-high financing. By contrast, the litters group's 40 million Dollar listing capital is slightly "thin". There are insiders believe that the recent two-year group buying market cold, litters group's own performance is not good, this time with so little money to the United States to tap the clock, the prospects are not optimistic.

There are also capital market sources said that for the litters Regiment, the 40 million U.S. dollar is not the final financing amount, should only be in the U.S. regulatory agency of the occupation costs. At present, the company has not disclosed the final number of shares. Ali listed earlier, also appeared in the prospectus shows the amount of financing (1 billion U.S. dollars) and the actual discrepancy. Eventually Ali financed more than 25 billion dollars. It is reported that the litters group does not disclose the number of shares issued in the prospectus and valuation.

However, the final financing amount should be disclosed in the subsequent update of the prospectus.

B why desperately looking for "backstage"?

After a scuffle baptism, group buying market big injury, the market cold, the domestic only several purchase sites to find "backstage". Glutinous Rice was bought by Baidu, the public comments hand Tencent, the United States Regiment alongside Ali, pull under the three cell wedding. In this context, the litters group has become the only one of several major group buying sites in the "independent Army."

After experiencing the early rapid expansion of the operation of the irregular and other issues, from the first half of 2012 litters group announced from the group Buy mode transformation into the mall model. Litters Group CEO Xu Maodong said: "Litters do not want to provide the same as others of the same quality service, so litters do group buying only a year or so, soon out." "At present the Litters Regiment's three core products are: Litters Mall, Mobile client, litters electric business operating system" litters EMS.

The Regiment 800 report shows that as of September 2014, the national group purchase market total turnover of 51.06 billion yuan, an increase of 111%. To the Litters Regiment 2014 years ago three quarter 3.69 billion yuan turnover calculation, the Litters regiment only occupies the entire market turnover 7.2%. Analysis points out that in other market share higher rivals have to find the king of the situation, the situation of the litters regiment looks lonely, and group buying is a very burning money industry, not a lot of financial support is difficult to sustain, and the litters group may be anxious sprint listing is also to solve the financing problem.

C bad performance on the market outlook fear hard to optimistic

Previously, the proposed listed group buying site is not a litters group. Handle Network in October 2011 officially launched the U.S. IPO, as the first launch in the United States IPO of the Chinese group purchase site, valued as high as 1.1 billion U.S. dollars. However, in the second half of 2011 years, the capital market turn cold, handle online city dream shattered, to now, the handle network has been reduced to the situation of seeking acquisitions. The litters group also said in May 2011 that the launch of the U.S. IPO process, and later shelved.

After the war, the group buying market tends to concentrate. According to statistics, the third quarter of 2014, the United States Regiment, the public comments group, Baidu Glutinous rice occupy the top three of Chinese group buying market share. One of the U.S. group ranked first, occupy the market share of 55%, the public comments group accounted for 22% ranked second, the third of the glutinous rice accounted for 13%.

The litters group not only has less market share, and the market performance in the past two years is poor. According to statistics, 2014 years ago 9 months net revenue of 20.642 million U.S. dollars, down nearly 26%, while the first 9 months of last year, the company net loss amounted to 32.447 million U.S. dollars, the same period of the previous year net loss of 21.121 million U.S. dollars.

In order to enrich the blood, it is reported that May 2014, the Litters Regiment has received 50 million U.S. dollars strategic funds, about 310 million yuan. However, there is a point of view, operating costs increase, operating losses have increased significantly, in the background of the group buying spree has already receded, "buy the remaining" litters group performance is not excellent, the ranking is also relatively dependent upon, in this time to choose a listed IPO, far from the imagination of so optimistic.