Group buying website Craze

In just 3 months, the birth of nearly 400 sites, what business model can have so many advocates?

The answer may be coming from Groupon, the American group-buying website. Groupon began in November 2008, a day in a city to launch a single product, through a large discount price to attract users to buy consumer, group buying objects involving catering, fitness, beauty and film format services.

Groupon does not have cool technical innovation, business model is not abstruse, the Web platform's revenue from the extraction of a part of the Service Commission, but it created a new miracle in the history of the United States Internet. Twitter spent 3 years to reach the 1 billion dollar valuation, Facebook spent 2 years to reach a 1 billion dollar valuation, while Groupon only used 1.5 time to set a record of 1.35 billion U.S. dollars, and only half a year to achieve profitability.

With previous portals, search, E-commerce, online video, micro-blog and many other Internet applications from the United States to China's migration route, Groupon's group buying whirlwind quickly spread to China. Starting from March this year, the United States Regiment NET, full network, love to the regiment, handle nets, litters nets, 24 coupons and cool network, such as overnight springing up. According to the industry is not complete statistics, the current Chinese group buying site has more than 400. And, surprisingly, almost all of these sites are clones of Groupon, much like page design, marketing ideas and business models.

Although China's Internet model has almost all traces of imitation, it is rare for such a large scale to replicate in such a short time as group buying. The reason, the industry generally believed that mainly because the threshold for group buying website is very low. "Invest thousands of yuan to be able to do a group purchase website." Wang, founder of the American network. At the same time, the purchase site to use the first pay, and then consumption of the business model, in the short term can bring the flow of circulating funds, which makes the lack of funds of entrepreneurs excited, like to find a gold mine.

But after a brief frenzy, the drawbacks of the group buying site are also exposed. "Group buying sites do not allow us to enjoy the services we deserve." "A number of group buying experience complained that the price of group buying site is greatly compromised, and its services are discounted." In addition, the business model is also maintained quite sober. Chinese Medicine massage Chain "China good Son" related to the responsible person also told reporters, "group purchase site so that the fire of the store more fire, deserted shop is still deserted, and can not bring real business opportunities." ”

400 "Regiment" in 3 months

Talk about the rise of Chinese group buying website, had to mention a person--wang. Perhaps, know the Wang is not many people, but played in the net, domestic network and rice network users must be a few, Wang is the founder of the three major sites. This year, 31-Year-old Wang from the United States after graduating from the University of Interlaken Master's degree, in the 6-year period has started 3 times, by the industry called "Serial entrepreneurs", "kill the Cockroach".

His latest entrepreneurial project is the American network. According to the introduction, July 2009, Wang Rice net for some reason was closed, until January 2010, the rice is still open hopeless, so he germination of a similar idea to create a Groupon site. But before doing this site, the Wang has not done much to assess the required investments and risks.

March 4 This year, Wang of the United States Regiment online since, more or less because of Wang's entrepreneurial experience, the United States network once online, that caused widespread concern. "The United States Group Network is not the first group Buy 2.0 sites (note: fence, etc. belong to group Purchase 1.0 sites), but the first group to attract greater attention to the site." "Some insiders say.

"From the school, the domestic, the rice to the United States network, I have been using human relations to disseminate information." Just used to do SNS (Community class site), now do e-commerce applications. "Wang that the United States and the network adhering to the same line of entrepreneurial thinking, but the application of the angle has been adjusted."

The launch of the United States network has accelerated the proliferation of Groupon Models in China, followed by Beijing's handle network, love to the net, full network and Shanghai's Cool group network. "In just three months, the group purchase site has more than 400." "Wang said.

These sites basically target users between the ages of 20 and 45, with online buying and payment habits, and price-sensitive people who want to pursue a high quality life. As a result of pushing a product every day, it turns the general E-commerce site into a collective game behavior, consumers no longer in the crowded information aimlessly search their favorite goods.

But these sites have different soft power, which makes them develop mixed. Small sites are often only in a certain city operation, merchant quality, price discounts are unattractive, large sites such as handle network will expand the scope of business has been rapidly expanded to 100 cities, and occasionally launched "-1 yuan ipad lottery" and other activities to attract eyeballs, accumulate users.

Full Network Marketing Director Li Ling told reporters that the total network from January to start trial operation, the March officially launched, "Sales each month to show a total growth rate, June is expected to reach 2 million yuan."

The first experience of merchant

But three months after the bubble boom, there has been growing scepticism among businesses and users about group buying sites.

"I personally think that the group purchase site is likely a flash in the pan." "The new Japanese restaurant, which has had two cooperative experiences with group buying sites," will be too no two, "the promise of the marketing department told reporters," group buying sites to businesses and users bring limited value. ”

The promise said, "group purchase discount is very low, resulting in meager profits." Therefore, the merchant is willing to cooperate with the group purchase website mainly for the propaganda need. "Through the way of group purchase, the Merchant is equivalent to doing free brand promotion." At the same time, because the purchase site to take the user first pay after the business model of consumption, product promotion is almost 0 risk.

However, the problem is that group buying sites can not bring effective value to the business users. "More users are running a low discount on the goods, and then leaving after spending once, that is, not the business wants to have long-term" repeat ". Said the promise. This is also the value of Chinese group buying sites and Groupon is not the same place. In the United States, because of geographical diversification, consumer maturity, business through discount promotional information, not only in the start-up period can attract new customers, but also hope that through the membership system and other services to cultivate its long-term customers.

"Because some customers are not our target customers, they have a lack of understanding of our food materials, service levels, etc." For example, there is a customer experience after criticizing our price is too high, and in the public comment network, Word-of-mouth online attack. "This kind of publicity is not only unhelpful, it also brings negative effects to the brand," he said. ”

Chinese Medicine massage Chain "China good Son" related personage also said, "and group buying website cooperation is hope to drive the business of bad store." However, the results found that the operation of a good store can not carry the outbreak of users, the operation of the shop is still not good. ”

At the same time, because the group purchase site to bring a centralized burst of users more than the actual service capacity of the store, directly leading to a decline in service quality. A number of consumers told reporters that business services are not satisfactory.

In addition to extensive management exposure abuses, group buying website Vicious competition is also intensifying. When hundreds of sites scramble for a customer at the same time, there will be no cost or even their own stickers to rob businesses, doing a "loss to make a yell" business.