Group buying will not die, many group buying sites will die

First Look at 2 news:

1, Group purchase website Groupon11 4th officially in the Nasdaq listing trading, the first day of the IPO price rose nearly 31%. Groupon's IPO price is 20 dollars. On the first day of the IPO, Groupon's shares rose 40% per cent in early trading, closing the times at $26.11, or 31%. According to the closing price, Groupon's market value is $16.6 billion trillion, surpassing the old technology companies such as Adobe, close to Yahoo's market capitalisation.

Groupon's market capitalisation after the Friday close was also closer to a 15 billion to 20 billion dollar valuation of the company's investment bank when it submitted its IPO application in June.

2, according to media reports, the domestic group purchase Web site handle Network 28th to the U.S. Securities and Exchange Commission submitted an IPO (initial public offering) prospectus, plans to finance 100 million U.S. dollars through the IPO.

The handle net says in the prospectus, the IPO proceeds will be used mainly in 6 areas, including: strengthening marketing, expanding sales networks and releasing and delivering infrastructure, building a call center and an operations center, research and Development, improving the company's ERP (Enterprise resource Planning) system, and further strengthening the technical infrastructure General business objectives, including operational capital requirements and possible mergers and acquisitions. However, the handle network can not determine any acquisition target at present.

Let's look at a few sets of data:

1, on the number of group buy sites: According to media reports, from shopping search a Amoy network monitoring data show that September more than 8% of the site has not updated in 30 days, that is to say, in September at least more than 400 small and medium-sized group buying site for a variety of reasons for revision or closure. According to the three-party group buying navigation site network statistics, September domestic Group purchase site closed the number of up to 419, as at the end of September 2011, Nationwide has been 1027 group buying sites in the fierce competition to close, quit the group buying market, accounted for all the total number of operating group purchase site 18%

2, about advertising: from the third party media monitoring company data shows that from July onwards, the entire group buying industry's advertising amount from July more than 160 million directly down to 100 million, into August, the group purchase site media ads in about 60 million, and then a new low. According to industry sources, at present in TOP10 group buying site, at least 80% have stopped the television, outdoor, building and other media advertising program.

3, on the downsizing: Following the previous high-peer network, happy group buying bursts of mass layoffs, September, including litters Regiment, such as the Mission treasure Web sites have begun to undertake large-scale "optimization" action. Group Treasure net was exposed to layoffs more than 50%, and the litters regiment of layoffs or up to 70%, only Shandong area has Heze, Liaocheng, Zaozhuang and other 7 urban substation was abolished.

Will the group buying site die?

The answer is yes. As the American group net Wang says, 99.9% group buying website all will die. Group buying in the experience of the expansion of the war, advertising war, endorsement war and talent war, group buying site burning money market model began to appear problems. From financial issues, integrity issues to after-sales service issues, group buying industry surface prosperity behind the crisis.

Handle nets Why rush IPO, because there is no money, and also not melt money, and group buying mode is facing the pressure of the revenue, the model of doubt, VC worry, want to take back the money, buy vicious carry out need to burn money.

Moreover, none of the above problems can be solved in the short term. So many group buying sites will die.

Group purchase will not die

On one side is the crisis of independent group purchase site, side of Taobao, Pat, Jingdong Mall, such as the purchase of E-commerce site business has been booming.

Alibaba Group announced September 20, Taobao's group buy platform "ju.taobao.com" ("poly") will be in the form of a company to operate independently, as Alibaba Group, another independent subsidiary.

According to "Poly-cost" general manager Shanli said, "Poly-cost" is currently issued daily sales of goods and services to 100, daily turnover of 20 million yuan, is expected to achieve 2011 full volume of 10 billion yuan, the end of the daily turnover is expected to break through 100 million yuan.

Shanli revealed that "poly-cost" is currently in the country 17 cities opened business, in various cities in the country, the local market share is located in the former three strong main local life service group purchase site, through Taobao open shop, so as "Taobao sellers" identity more conveniently in the "Poly cost-effective" platform to release the group purchase items. These main local services to buy the site Taobao, to pay the standard Taobao different "wind control Gold", the first-tier cities and second-tier cities are 300,000 yuan and 200,000 yuan respectively. "The money will be frozen in these sellers ' Alipay accounts and used for payment in future transaction disputes." Shanli said that there are thousands of Taobao sellers every day to participate in the "poly cost-effective", often to go through more than a week of scheduling, and from Amoy to the selection of the qualification, from a daily pick out 100 products into the day of "poly cost-effective" promotion.

According to He Yi observation, the major E-commerce platform are basically online their own group buying channel, Tencent's Pat buy, Baidu Group purchase, is almost entirely in reference to move Taobao gather cost-effective mode, and Jingdong group buy, Mai Lin group buy, where customers buy and other electric business platform, is the use of the United States Regiment mode, a variety of goods each day to buy.

From the above electric business platform Group buy channel can be seen, group buying has become the standard of the electric business platform, has become its indispensable marketing means, the electric business platform has become the biggest winner of group buying.

Conclusion: Group buying will not die, but many group buying sites will die.

Why? A person who wants to eat a fat man is often easily swallowed. Most people who are obsessed with trickery will not succeed, but they may have various unfavorable conditions. In the end, but the man made a wedding dress.