Group buying mode meets cold, litters the future of the group is unknown

In the last few group buying sites after the Hundred-Regiment war, the litters group unexpectedly became one of the closest to the capital markets.

January 10, the litters group to the U.S. Securities and Exchange Commission submitted an IPO application, proposed to raise up to 40 million U.S. dollars, plans to list on the Nasdaq listing.

This is the 2011 IPO failure, the litters group once again launched the U.S. listing plan. But, to the United States and the general public comment on the 700 million, 800 million dollar two sky-high financing news, 40 million dollar fund-raising plan is somewhat "shabby".

In this respect, some capital market Personage said, this 40 million dollar should be in the US regulator's position amount, mainly uses in calculates the registration fee. For Litters Mall, the 40 million dollar is just equivalent to the U.S. listing of the "deposit." At present, litters Mall's prospectus does not disclose the number of shares issued and valuation. The final financing amount should be disclosed in the subsequent update of the prospectus.

However, three years, group buying spree has long receded. The litters group, which did not perform well, chose the IPO at this time.

Group buying mode meets cold

This is certainly not the best time for a litters IPO, if only from a performance perspective.

Statistics show that in August 2011, litters Group had 171 million yuan sales over the handle net of 161 million yuan and the United States network of 133 million yuan, ranked first.

However, the heat wave of the burning money war receded, after the capital cools the group buying market, the litters Regiment once glorious already ceased to exist.

According to the financial information disclosed in the litters's prospectus, the litters group had a net revenue of USD 20.6 million for 9 months 2014 years ago, compared with $27.6 million in the same period in 2013 and a net loss of $32.4 million, compared with a net loss of $21.1 million in the same period in 2013.

In addition, as of the third quarter of 2014, the number of online merchants litters Group 105,000, the number of registered users 34.1 million, online service categories (Group purchase unit) 430,000, covering the number of cities for 150.

According to the third party statistical report, in the third quarter of 2014, the U.S. group, the mass comment 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 group 800 report shows that as of September 2014, the total market volume of the national group buys 51.06 billion yuan, up 111% from the same period in 2013. 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%.

And in the once hit group buying industry, proposed an IPO is not just a litters group.

The handle net was the first Chinese group buying site to launch an IPO in the United States, valued at $1.1 billion trillion. Under the leadership of founder Wu, the handle net was designed to be listed for the purpose, and in October 2011 officially launched the IPO in the United States. However, Groupon was not favored in the United States at the time, one months later, the handle network suspended IPO due to accounting problems. Before the handle nets rely on advertising to return market share is gradually eroded by competitors, to 2012 when the decline of the pull-back network gradually obvious.

In fact, even Groupon, which is finally a successful IPO, is not hiring capital markets.

November 4, 2011, Groupon landed on Nasdaq, but the market has not been profitable for many years, the share price has fallen from $20 per share to 2 U.S. dollars, the current market value of less than 5.2 billion U.S. dollars. As of the third quarter of 2014, Groupon's net loss was $21.2 million trillion, which widened from a year earlier.

As a matter of fact, Groupon is looking for a new model because it cannot withstand the pressure of performance losses.

What's the future?

Ali shares in the United States, Baidu swallowed glutinous rice, suning integration full, the public comments on the network into the embrace of Tencent, handle the network "prostitution" of the three-cell group under the background, Litters Regiment has become a large-scale domestic group purchase site, the only one does not spell godfather "only."

and litters group from 2012 onwards from group buying mode to the Mall mode transformation, the current positioning is "local life service E-commerce platform."

According to the litters group, its business for local life service businesses in the litters platform to open online shops to consumers directly sell their services or products. At present, three core products are: Litters Mall, Mobile client, litters E-commerce operating system.

In this respect, litters CEO Xu Maodong in the media interview said: "Today's traditional group buying business is actually a Red sea, we are not interested in the Red Sea business." Litters do not want to provide the same as others of the same quality of service, so litters do buy a year or so, soon came out. ”

However, the current litters mall's platform use cost of income is not high.

According to the litters group, its revenues in 2012 and 2013 were 27.8 million U.S. dollars and 36.3 million dollars respectively. Among them, the platform royalties income is 2.8 million dollars and 10 million dollars respectively, the platform uses the expense to occupy the total revenue 10% and 28%. 2013 years ago 9 months and 2014 years ago 9 months, the overall income was 27.6 million dollars and 20.6 million dollars respectively. The revenue for platform royalties is 6.7 million U.S. dollars and 7.3 million U.S. dollars, accounting for 24% and 35% of total revenue.

Compared to busy layout group purchase outside the business of the United States and the general public comments, the transformation of the litters group seems not clear, and the industry's concern is that no sign of the IPO litters can provide a more convincing story of the capital market.