Group buying industry bubble big full net 50% cities have been profitable

Source: Internet
Author: User
Keywords nbsp. buy Bubble Feng full net
Group buying industry bubble big full 50% cities have been profitable

October 21 News & ">nbsp; For the group buying industry, the harvest of the autumn of October, but shrouded in winter clouds. No doubt, after more than a year of barbaric growth, group buying mode really met the first crossroads: Groupon adjusted valuations will be next week in the IPO roadshow, one side is thousands of of small group buying site into a zombie station, one side is handle, litters, high friends, 24 coupons, such as large layoffs, one side is full, The United States and other plowing, to seek breakthrough ... What happened to the group buying industry? Where is the future of the group buying industry? An interview with the old Cat full network CEO Feng, on the group buying industry hot issues, Feng exposed all the inside behind.

In response to the current group buying industry in the scale of layoffs, feng that mainly because the group buying model is too attractive, resulting in a bubble too big, margin fell to less than 5%. In addition, as the competition for talent leads to a bubble in overall pay, the cost of falling incomes rises.

Groupon will conduct its IPO roadshow next week, with an overall valuation of about $10 billion trillion to 12 billion. Feng said that China's group buying site has been a great opportunity, the key to see what kind of team is doing, not to make too many mistakes, the company will have a more stable forward opportunities. Chinese group buying site before the practice is too radical, come out sooner or later to return.

Feng said that VCs still think there is a big opportunity for local services, group buying mode is very good, the capital is now cautious to take into account the industry bubble is too obvious, need to have the process of bubble.

In addition, Feng revealed that the full of full already in 50% of the city to achieve profitability, the established December to achieve the goal of profitability may be early arrival.

Full Network CEO Feng

The old cat: handle, litters, high friend, regiment treasure and so on now is carrying on the scale sex layoffs, the full net now is what kind of situation?

Feng: In fact, group buying is a very good business model, for businesses, on the one hand, through group buying can predict some raw materials in advance, so he can enjoy the advantages of raw material collection from upstream, reduce the cost, on the one hand through the marketing platform to buy their own brand characteristics directed to the interested, Combinations can be diverse, pricing can be diverse, the inventory, vacancy to take out the cost, the merchant is willing to do group buying; for consumers, faced with a complex, overwhelming advertising, they easily lost their own needs, how to consumers of consumer demand mining out, to consumers to push their interest in local boutique services, At the same time through the form of group buying to the business of advertising into concessions, to consumers, consumers are naturally more willing to accept. and the group-buying site as an intermediary platform to do both ends of the demand is its job, but also his value.

But early because this model is too attractive, leading to the industry bubble is too big, some group buying website after the crazy underwriting, subsidies, smashing ads, these actions changed the model of group buying this wonderful, resulting in a serious decline in the entire industry, from the beginning of the 20% decline to less than 5%, At the same time, as a result of the competition for talent, the overall pay appears a clear bubble, the cost of income rise, this is the status of the group buying industry.

The full of this deformity was not long before the full time of the whole year. So take the "you hit you, I hit my" strategy, urban expansion to maintain positive but not radical, do not follow the story of innovation, clear positioning of white-collar users, product selection on the exquisite route, operation to take intensive cultivation.

Of course, we have made some mistakes, for example, when the market is crazy expansion did not hold back some of the market potential of the city, so we in recent months, also shut down some of the market is not ideal three-tier site, about 10 sites. After several months of intensive cultivation, the company's goal of achieving profitability by the end of the year may be completed ahead of schedule. At the same time, through our attention to user experience, full brand is the business, consumers form a good trust, this good reputation is very rare.

Old cat: News that Groupon will be doing IPO roadshow next week will raise $500 million trillion, while the company's overall valuation is about $10 billion to 12 billion. Do you think Chinese group buying will be revived?

Feng: China's group buying site has been a great opportunity, because our competitive environment is worse, so we have more innovation, while our consumer market is still in the embryonic stage, need more service platform for businesses, consumers. Of course, whether there is a chance to see what kind of team is doing, do not make too many mistakes, the company will have a more stable forward opportunities. Chinese group buying site before the practice is too radical, out of the mix sooner or later, there is no delicate operation of the sense of the group buying site will pay the price, may be ranked the top ten of the group buy site will have more than one, but the enterprise will usher in greater development.

Old cat: Big group buying site is also different style of two representatives, a camp is handle, litters this radical type, the other camp is full, the United States such a robust, in this sudden turn of the environment, you think which more potential to break through the bottleneck?

Feng: Of course I would think that a company with a healthy development has a better chance. China too many enterprises for quick success, want to eat a big fat, 1 years to become a listed company target, this is unrealistic. We operate a platform to provide marketing services to local service providers, and there is a lot of work to be done in the local service industry in China, whether it is a building or a service system. Whether or not in the forefront, I think enterprises must be down-to-earth, steadfast to consider how to help businesses increase revenue, how to improve the operation of the industry efficiency.

Old cat: Before you mentioned now full network has a "corner overtaking" the great opportunity, and the first step to make the profit of the action, full net began to profit?

Feng: Full is already profitable in 50% of the city, and the established December target for profitability may arrive ahead of schedule.

Old cat: What do you think about the buying market now?

Feng: Venture capitalists first think that there is a big opportunity for local services, the mode of group buying is still very good, the capital is now cautious to take into account that the industry bubble is too obvious, need to have a bubble process. Capital will never be timely, is always playing the role of doping, is now the bottleneck of group buying industry, who can break through this bottleneck who can usher in a new big development.

Old cat: There are some group buying sites are preparing to go public, is not the capital chain before the last stroke? If the IPO fails, what are their trends?

Feng: That's a bad comment.

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