Handle Network Mall new mode localization service abandoned?

"Billion Power network," February 15 news, the United States capital market is trying to find a breakthrough in a number of areas, which handle mall opened by the industry is considered to be its transformation. There are insiders said that the reason handles the network opened the mall, because of its own localization services group buy encounter bottlenecks. "The purchase of beer and Skittles business may give up." ”

Is it difficult to get a good deal?

"This (handle shop mode) should be meaningless, do not Taobao." "One of the top ten group buying site insiders pointed out that the handle mall in the supply or flow can not be compared with the cost of a good, but to go and a similar model, the prospects are not optimistic."

According to media reports, handle mall last December on the line of the public test, and in early February officially online. Its cooperation with the offline entity store merchants to pay rent to the way into the mall. Billion power network to see the handle mall, there are already Arctic velvet, nano-grain, Taiping Bird, Song Yun Lu, Lang, Spokane, such as the Emperor card 24 apparel merchants stationed. These brands are still sold in the mode of group buying, with discounts maintained at around 20 percent to 40 percent.

Billion power network view handle mall on the men's Amoy brand Spokane in the discovery, currently a total of 10 products, sales of the best is a 26 percent-coat jacket, price 99 yuan, a total of 242 ginseng Group. Second, a 45 percent of the leisure pants sold, has 226 people to buy. Several other sales were not more than 50. Spokane in the handle shop total sales of 655 pieces.

Relative sales of the more attractive is Rosa's stockings, underwear and other categories. More than 15,000 people are currently involved in the purchase.

"At present, the sale of the handle shop is very limited, and can not be compared with the cost of the deal." "Hangzhou Brand Huchangchai, the head of women's electricity dealers, said, settled handle mall is an attempt, in addition, has not been with other pure group purchase website to carry out cooperation.

According to this day cat (Taobao Mall) women's sales ranked seventh of the merchants revealed that the grain in the gathering cost of 3 pieces of winter clothing can sell more than 4 million yuan sales. and billion power network to see its handle shop in the goods, on-line one week, 15 items sold only 469 pieces, sales of about 50,000 yuan. The assumption is that according to a 15-day mission, sales are about 120,000 yuan.

"Taobao resources to accumulate far over the net, the two sides originally go is a different model, but the handle is bent on the transformation of the mall, how many of the eggs to touch the stone." "A traditional women's shoes brand electric business owner pointed out that if let her choose, will be the first choice for a cost-effective."

"Like the cost of such activities can be brought to the merchants are very high conversion rate of customers, a store can get millions of a day traffic, who do not want to participate?" If there is no order, no deal, no credit, it can not sell. "A businessman in charge of Taobao Women's operations, said that the cost of the business in a short period of time to solve the flow of conversion, sales promotion and other issues have a significant effect."

"In fact, the cost of clustering is also constantly expanding in the localization service group buying business." Therefore, both the handle and the cost, are in the area of expertise to each other to penetrate and expand. "Regiment 800 co-founder Hu Chen thinks.

In addition, some industry insiders pointed out that merchants settled handle shopping mall, it may be regarded as the distribution channel of the reverse season marketing, to digest the inventory of goods more helpful. Billion power network found that Spokane in the handle mall on the line of a group buy cotton-padded clothes, Taobao store in the same time to search for 99 yuan, and the original price of the cat is 199 yuan (50 percent), not handle the identification of 388 yuan (26 percent).

Abandoning localization services will die?

Some insiders pointed out that the handle network to do similar to Taobao and the business of good, because the localization of service groups do not ideal.

"Handle to the localization of the beer and skittles buying business is basically going to give up. "A group of people inside the site to speak bluntly.

However, through group buying navigation 800 to 2011 group Buying market analysis, handle nets to 1.63 billion yuan revenue ahead of the entire industry, market share accounted for 13%, and the United States network, litters group. and a Amoy network survey results show that the handle nets in the first line, second line, three-tier cities in the frequent access to the proportion of consumers accounted for 38.66%, 36.55%, 29.32%, the user's brand awareness of the lead in other sites.

"Online shopping mode and group purchase mode of users are not equal." Online shopping for female users is relatively more, but the proportion of men in group buying is even higher. "Regiment 800 co-founder Hu Chen inform billion power network, limited by user habits, handle network using mall model can be extended to buy products, relying on merchant warehousing logistics, so that the company's business becomes lighter, operating and expanding pressure will be relatively reduced, thus avoiding the risk of pure O2O group purchase."

Compared to the handle network in a hurry to expand the network shopping market, the United States network is sticking to localization services. "Today's services group buying is in a very broad blue sea, the current market size is only about 1% of the overall market size." Wang Huiwen, vice president of the United States Group Network, announced.

Wang Huiwen also pointed out that offline, such as catering, film, KTV and other services such as the consumer and the cost can not be done, if the group purchase site to buy only the dead. "The United States has been controlled by the group of commodity group buy control under 10%, resolutely follow the line under the service group buy."

Looking at the domestic network shopping market, the current search for transformation, in addition to the handle network to start the shopping mall, glutinous Rice Network also launched a network to buy channels, mainly in kind transactions. Litters Group is on line new domain name Litters Mall, to more coupons form to retain more users stop. Other group buying sites have not shown the meaning of transformation, the market focus on localization services.

"The psychology of consumers is usually more willing to accept the discounted price of physical group buying, especially if there is a brand premium space." On the contrary, in the catering and other life service consumption, users are easier to compare, and do not have the corresponding brand magic. As a result, the number of purchases in kind is relatively more concentrated. Hu Chen explained.

"Handle shopping mall's launch, can promote the kind buys and localization service more balanced, is equivalent to use two nets to fish." But the United States and other dedicated localization services such as group buy more flat, more single-minded business, more aggressive in the market. "There is an analysis of the industry, the different focus on the embodiment of the group buying site is product and brand building constantly seeking differentiation, is not enough to determine what kind of strategy is more promising."

Raise the Profit is homeward

In addition to handle the mall, handle the network to create the brand effect of enterprises to improve value-added has never stopped the pace of exploration, including handle Hui, handle +, comment on the return of a series of changes, are constantly strengthening the line and offline industry chain close cooperation, so as to obtain more quality customers, improve user viscosity.

However, this series of changes can not hide the handle with other comprehensive group buying sites face the embarrassment of the plight of persistent losses.

According to the handle in the prospectus submitted last year, since the operation, the loss has accumulated up to 73.4 million U.S. dollars. Some media pointed out that 2011 years ago three quarter, handle in sales and market spending more than 520 million yuan, and this three quarters of gross profit is only 88 million. In the continuous sprint and market-scraping process, the expansion of the scale and increasingly cut the gross profit margin (industry gross margin is usually 5%-8%), has made many group buying site unsustainable. The continued loss of the handle has also become the main reason for its attempted IPO.

"In addition to the hunt for Chinese concept stocks in the US capital markets, the group buying market is not bullish," he said. Even Groupon, the originator of group buying, is similarly depressed in equities. So, the loss is so big and the market share so fragmented that investors have little confidence in the growth momentum of the domestic group buying website. Hu Chen that the company's IPO can not only talk about expectations, but in the reality of the rotten.

According to the data provided by the Regiment 800, although the handle net in the annual sales share, sales and purchase number to maintain the leading edge, but its average profit of 1884.8 yuan, only ranked sixth. And the most popular comment group is more than million per single profit.

Group Buy website Average profit

In this regard, the group of 800 co-founder Hu Chen that the single profit ranking more than before the public comment Group and glutinous rice net, because around the one or two-line city to set up high-end business cooperation, the relative price will be relatively high, and handle covering the national scope, business model diversification, the net purchase price and relatively lower than local services, it will affect the average profit.

According to the 2011 Group buying category statistics, although the number of purchases accounted for, in kind group purchase accounted for nearly half of the proportion (48%), but catering, entertainment, travel and life services, such as localized service consumption in the period of the total dominance. In terms of turnover, the kind of group purchase accounted for only 26%. This shows that the kind of group buy high single time and can not be converted into high sales. The average profit for localization services is clearly higher. In kind, the customer unit price is the lowest, less than 20 yuan. Figure）

"Handle Mall to sell more goods at a low price discount, but the very low margin of the situation, whether there is a breakthrough, but also to see in the larger online shopping market, whether the digestion period of their own users, and the formation of user viscosity and consumption habits." According to the industry analysis, the kind of group buy can at least reduce the original ground sales force, from the non-stop reclamation of local businesses, more human cost consumption, the transformation of Taobao Mall-style real estate rental model, create more cash flow can turnover, and to create conditions for its profitability.

In addition, the mall model can also avoid the localization of services due to user needs and on-line activities caused by the time lag of waste.

"From the current group buying market, some group buying companies have begun to consider cost-effective and income, no longer blindly follow the bandwagon, collective race to burn money." "In the industry, the competition to do a sucker for the era has passed, group purchase site transformation must return to the refinement of the operation, can not just act as a business advertising marketing platform."

The Hu Chen of the

Regiment 800 points out that increasing the impact of the platform and user loyalty, through the continuous creation of differentiated value-added points, to improve consumer experience, so that consumers feel more than ordinary consumption more outstanding, the formation of word-of-mouth effect of the site, to produce duplicate purchase. "Let users firmly remember the domain name of the group buying site will be able to compete in the future foothold." The