Group buying site savage growth side effects

Summary: Zhang met the entire May, handle nets, litters group, the United States and other groups of the network group of the true and false news in the spread of the rumor. First, there are reports that the handle net East China region all the core backbone of a total of more than 200 people collectively job-hopping litters Regiment; the next day, there are rumors

Zhang met

Throughout the May, "handle nets", "litters Regiment", "American Group Network" and other group purchase site of the true and false news in the spread of the wind. First, there are reports that the handle net East China region all the core backbone of a total of more than 200 people collectively job-hopping litters Regiment; the next day, there are rumors of the handle Nets Chongqing station 60 employees also collectively defected to the new owner. For the "Handle net", the total sales of 1/3 of the East China region, this will inevitably be suffering from human losses and bones. In a short period of time thereafter, the microblog quickly broke out the "United States network director of eastern China to lead the collective separation of 300 employees" news, and the United States Group Network insists that they are "job-hopping" and "be spoof."

Of course, whether the news is true or false, this is only a lot of group buying site "mutual poach" a microcosm of the phenomenon. The talent scare has already begun with Groupon's plan to enter China. "Regiment treasure nets, 24 coupons are the earliest to start advertising, we are mainly afraid of the hearts of Groupon, we also have such a mentality, so very clear." We were worried about high friends, so we melted the C round. "Handle net Wu revealed, Tencent and Groupon joint venture of High peer network has not yet started, it will be out in a number of group buying site Dug corner news." Most of the employees in the group buying site, such as the full net and the handle net, have received calls from headhunters.

Although the domestic 5 group buying website has reached an oral agreement, opposed to group buying site malicious digging people, but, group buying site strength average and the characteristics of turbulent development, still triggered a large-scale flow. According to people familiar with the industry, Groupon first tried every means to recruit people, such as "high salary", "Power promise" and other ways to lure, after the success of the excavation crackdown on competitors, these have made "meritorious" subordinates are not rewarded, but "Tusigoupeng" type of dismissal notice. Innovation Workshop Chairman and CEO Lee also indirectly confirms Groupon's practice of undermining industry rules.

Not only in the personnel reserves, the city site has also emerged, group purchase site Most of the scale is not stable. A few days ago, happy group purchase in Nanjing, Ningbo and other cities, large-scale layoffs caused a storm, according to the internal staff of Happy Group purchase revealed that the job losses directly led to the city's site in the short term no new single, only a few days before the old single, or even completely from the city to withdraw, closed the site. Coincidentally, the United States before this network also on the three or four line of the city's site has been reduced, the closure of Chifeng, Longyan, Yulin, Ma On Shan Four cities of the substation.

The acceleration of the flow of personnel, the frequent closure of the site, increased the purchase of the site's consumers and the industry's concern-buy consumption is reliable? Can money be cashed? How long can the group buy net of "thousand Regiment war" still hold?

The side effects of barbaric growth

Whether in personnel or site, group purchase site turmoil, and its development of quick success even thirst, not unrelated.

is excessive competition causing the phenomenon of enthusiasm? According to one of the large group buying site sales staff said, in order to quickly expand and occupy the main points, many group buying sites are not ripe for time, they are eager in some small cities online group buying channel. The impatient group purchase website simply did not have the time to guide, to nurture and penetrate to the local consumption, not to mention the excavation, makes the group buying consumption pattern become the roots. In addition to the three or four-line city of merchant resources and user groups are not abundant, in such a quick buck, it is difficult to support the rapid development of the market.

Since then, the brutal growth of vicious competition intensified, profits fall again. Group buying site Crazy Horse Rodeo, most of the cost of earning a profit, even to achieve "every single lose money!" "Situation.

In the United States, Groupon and business can often achieve a profit of 5:5, compared to the domestic, the industry recognized level is 1:9, and according to the Shenboyang of glutinous Rice network revealed the number, the current domestic group buying industry profits even lower, "now 10% has not been able to hold." "According to an insider at another group buying website," in particular, group buying site in a new market in a certain area, are in the sticker money grab a single, the site played below the price of the store to attract consumers, sell a single compensation, plus local staff wages and other operating costs, the basic cost of 500,000 yuan per month. ”

If this is not cost-free operation, that is, the Web site subsidies businesses lose sales of the original intention, is the training market, so a lot of money to burn the market to promote, will buy the site's fragile capital chain life hangs.

Tens of thousands of people's sales force, hundreds of billions of advertising input, so that most of the group buy sites are living beyond their means. To handle the network as an example to buy the site to calculate the account, according to its current size of 4000 people, its monthly human operating costs about 60 million (the payroll, work and other operating costs to each employee, according to 15000 yuan/person calculation), and each month's advertising in about 80 million yuan, last month, The site also invited GE as its image spokesperson, cost or up and down in tens of thousands of dollars.

In the back of the house, the earning power is unspeakable. April, the public data from the handle net shows that the total water amount of the month is 100 million yuan. and the current group purchase site each single common gross margin is 8%, then its income is only about 8 million. So rough, every month to "burn" off about 100 million. Although, the handle net outside claims to obtain 110 million dollar financing, but according to such "Burn" money, it is unsustainable. Industry insiders said, "A lot of group buy nets and handle network ideas are the same, are looking forward to listing as soon as possible to solve the problem of capital chain." But if you do not go to the city, you will be stretched. It is also likely to have an impact on users at a time when business operations are difficult. ”

At present, this shortcoming has already appeared in some regions. There are reports that a large group buying site in east China closed some city substation, resulting in the user purchase coupons all expired, the user caused a lot of damage. In addition, "3 15" period, handle the net "false number of doors", the United States Regiment of "silk stockings Door", are from the front of the group to start to deceive consumers, this also shows that group buying is an urgent need to standardize the industry.

Who can realize the IPO dream

In fact, after the group buying model has just been introduced into the Chinese market, it is expected that there will be localized innovations while replicating. However, after the irrational entrepreneurial venture into the group buying mode, the exposed is the quick success of the group buying site: A simple copy of the mature business model, malicious attacks against competitors, and at all costs of data fraud. The fraud includes two aspects, including the face of the consumer, the original price of the commodity to show the competitiveness of its discount rate, while the number of sales of the site is also mostly water, in order to boost the purchase of popularity.

The current competition situation of group buying sites has been almost "absolute" and crazy.

Obviously, the management confusion, capital chain tension, vicious competition and low service have become the obstacles to the further development of group buying website. Shenboyang points out that at present, in the group buying mode, squeezed up more than 4,000 group buying website. On the one hand, it shows that the internet industry is not mature "rashly follow" and "can amoy a stroke is a sum" idea; on the other hand, it also shows that the integration and elimination of group buying website Storm has not yet come. Clearly, the ultimate realization of the IPO dream will not fall on the head of most group buying sites.