Group buying industry Shuffle soon handle net why sales fell by 33.7%?

Groupon is on the market, but its negative public opinion is on the dust.

"Ponzi scheme" is hard to prevent the domestic group buying industry crazy

Jos Ferrare, founder and CEO of Knewton, an online education firm, wrote in Friday that Groupon, unlike new social media companies such as Facebook, did not create value but created an unstable equilibrium. Its entire mode of operation is like a Ponzi scheme that will disintegrate within 5 years.

Whether the "Ponzi scheme" is correct or not, Groupon-induced buying spree is still a big play in the Chinese Internet in 2011, and the frenzy of group buying at home confirms the huge "pitfalls" of China's economic development and national consumption capacity.

Under the impetus of the capital, the domestic buys the heat not to decay. According to Analysys International statistics, 2010 China Group buying site has received 13 financing, involving 9 group buying website, financing amount of nearly 700 million yuan. Data show that 2011, the group purchase site advertising program has more than 1 billion yuan.

It is reported that up to the end of May, the number of domestic group buying site approximately 4,500. The Battle of the Thousand regiments is still in progress, but the pace of industry shuffling and integration is also accelerating.

A few days ago, group buying navigation Station Group 800 issued the "MAY 2011 China Group Purchase Statistics Report", the report showed that the United States Group network to 75.2 million of the sales ranked first. 24 coupons and handle nets are divided into second and third places, with sales of 74.53 million and 68.18 million respectively.

The handle net slipped from the sales champion position for the first time, from April to 102 million yuan to May 68.183 million yuan, the decline reached 33.7%.

Why does the handle net sales drop by 33.7%?

I think there are two main reasons for this:

First of all, handle network too much emphasis on advertising offensive, in the marketing thinking there are misunderstandings. May spent heavily hired GE endorsement, a series of ads landing CCTV, outdoor road signs and other media. But in real time media era, in the "increasingly declining advertising, public relations rising" era, advertising will never solve the credibility of the problem, if the value of advertising is to maintain the brand, so the current in the happy enclosure of the group buying companies, PR should be the first, because PR create brand;

Second, the handle net in May suffered a virtual lifting of the original price, suspected fraud and other crises, Chongqing, Nanjing, Hangzhou, Suzhou, Wuxi, Changzhou, Jiangyin and other regional teams of more than 300 people were also brutally rivals litters group "Even nest end", the turnover rate is frequent, mainly due to the salary and welfare, equity incentive system and staff expectations of the gap between the huge, This makes the handle network constantly in the public opinion and team stability crisis, how can such a team organization structure to ensure that sales do not decline?

American Regiment net small step run steady superior

It should be said that E-commerce in the domestic has been developed for more than more than 10 years, group buying also appeared in the domestic more than two years, consumer behavior has become more rational, consumers to fake group purchase and all kinds of false, fraudulent group buying recognition ability is also getting higher, group buying industry competition threshold is becoming higher.

If the group buying industry is compared to a marathon, the key to race and competition is not how much capital, how much advertising, but service, experience and quality. And handle network thinking is different, the United States Group Network will choose VC money into the bank, flagship Word-of-mouth marketing, 70% of new users by the old users word of mouth, in the city stronghold to take steps to develop a sound strategy, not blind expansion, walk the fine line of operation, in order to be in the new round of group buying industry reshuffle in the leadership position.

In capturing the minds of consumers, the United States Group Network in the group buying industry's first to introduce expired returns, the establishment of "seven days of approval, consumers are dissatisfied with the United States to pay, expired on the back of the" and other perfect protection services, investment, tens of thousands of building customer service Center, Constantly through the strict business audit system and beautiful site text pictures presented to achieve a differentiated experience, and constantly upgrade their brand in the consumer mind ladder position.

"The May 2011 China Group Purchase Statistics report," said the sample group buying site and the city May total generated sales of 597 million yuan, slightly lower than April. The drop in sales is highly likely to herald a period of adjustment for the group buying industry. Intensified competition in the industry, the credibility of the problem more and more serious, gradually improve the industry norms and other factors accumulated pressure will lead to buy to face all kinds of "stubborn" period.

Looking from the big environment, the new round of the internet bubble storm, the Chinese concept stocks in the United States collective crisis of trust, for group buying industry, rather than fighting for the first share, as steadfast, steady in the new round of the industry shuffle in the top, after all, domestic group purchase site, from the number of thousands of, but from the size and quality, 90% belongs to the speculators, the industry final competition will present the Matthew effect, tends to the oligarch mode, handles the net and the American Regiment net competition case's win and loses, is worth the industry reconsidering.