How does group buying mode deviate from the original intention in China?

"Engaged in group buying industry for four years, the biggest confusion is that I did not find a group purchase ' accompanied by growth ' merchants. Of course, my personal growth is also very limited. June 15, a group from 2010 onwards in the buying industry to fight, has been several group buying companies, has now begun to do sales management Zhang (alias) so sigh.

Group buy "originator" Groupon was founded in 2008, a temporary phenomenon-class products and in 2011 on the Nasdaq listing, its original intention is to centralize the user's procurement needs, and merchants to achieve direct docking. This saves the middle channel expense, the user obtains the benefit, but the merchant also may take the group purchase as a marketing behavior, contacts more users.

With the popularity of Groupon, domestic group buying sites swarmed. Once more than thousands of group buying sites, although after several baptism only a few of the few sites are still alive. But still did not change a status quo, with group buying this mode of development, gradually towards an extreme, become a "read Crooked" Sutra.

More than four years, Zhang see domestic many merchants through the group buying industry to make money, there are many due to group buying failed, but so far has not seen a merchant through group buying to achieve brand value.

Prior to that, he experienced the river border town outside the grilled whole fish from a single shop 200 square meters to the current growth of more than 10 chain stores, learned that vividcake cake from a completely unknown to become a five-star hotel supplier process. It is not objective to say that the public reviews the achievements of these brands, but the public comments on the brand definitely played a value-added role. These brands from the public comment on the promotion period with the public comments have close cooperation, in addition to business page display drainage, but also with the comments on the cooperation of group buying, coupons and other marketing methods, basic and public comments to achieve the "concomitant growth."

So how to buy this mode in the domestic is how to deviate from the original intention?

Double damage in breach of contract

Fundamentally speaking, group-buying connects users, merchants, and merchants to increase the chance of reaching a user by using the low price promotion method. Broadly speaking, group buying is currently divided into physical group buying and service group purchase. In kind, there is a good deal, 1th group, such as Electricity Corps purchase, and only the goods will, Poly beauty excellent product "Flash purchase" mode in fact, also belong to a group. Another group of services to buy mainly refers to the physical store to enjoy the life services related to the group, typical representatives have the United States, the public comments, Baidu Glutinous Rice, handle Regiment, litters mall and so on.

The nature of group buying or flash shopping is a bit like commercial property. Business centers rely on a variety of preferential policies and even free brand to enter the first line, to attract passenger flow can be a number of two or three lines of the brand charging high rents. and buy or flash purchase is the same, through very low prices sell products quickly gather popularity, through the user's additional consumption or two consumption to achieve marketing results.

The essence of the group purchase itself is a marketing tool. such as the chain of hot pot brand small sheep will be in the promotion of new products used to buy, to test the user's preference for new products, as well as the user's price sensitivity. The data will be used as a basis for the next marketing decision.

However, Zhang that the domestic group buy is "read crooked" Reason is, the merchant violates the contract, reduces the service quality, has harmed the user, or is buys the platform to violate the contract, simply in order to increase the trade water, the establishment low price damage merchant.

According to Zhang actual combat experience, in reality there are often two kinds of situation. One is that the merchant gives a very favorable package, the user arrives at the storefront, but the service attitude of the merchant is not good, or the vegetable product quantity is less, even appeared "the steak is changed into beef Willow" "Deceptive" event. Such a merchant can make money in a single group buy marketing, but the user experience is poor, resulting in a group buying user basically no retention rate results.

Another extreme situation is the group buying salesman's performance goal is to trade water and revenue points, of which trading water occupies the bulk. And these salesman will "cheat" some businessmen do not understand the industry to do some very big strength of the package, such a result is the trading water has, but the customer unit price will be pulled very low, long-term to the merchant will also cause damage.

Zhang Introduction, in the catering industry, barbecue and hot pot in the buy package, the profit space will be relatively large. Because the cost of buffet and hotpot is relatively low compared with Chinese food, and the supply chain is much simpler.

In other words, hot pot and barbecue because the dishes are fixed, so the merchant after the package, even from the weight of the dishes to do small movements, can also find profits back. If the consumer adds some extra consumption, this group purchase will be more cost-effective. As a result, the buffet of these two industries is relatively good, although it will reduce the price of a part of the customer, but the overall is to make money.

The most damaging is Chinese food and dinner. Zhang revealed that the customer unit price of less than 200 yuan in the restaurant net profit between 8%-15%, once the online group purchase, the salesman will recommend a 2-person package, a 4-6-person package, a 10-person group meal, and then add a coupon product. Such a structure can be divided into more than 80% of the shop consumers, and the customer unit price will be pulled very low.

And the group buying salesman is best at the rhetoric, group buying in helping catering merchants to sell marginal residual value. It means that the tenant's rent and utilities are fixed, and on this basis, more than one package is an extra income.

The fact is, with the development of mobile Internet, many users arrive at the merchant to start to consult have no group purchase, the scene orders to buy use. It is difficult to define whether the customer came to the merchant on line, or the merchant's own users got more concessions through group buying. But on the whole, the price of Chinese merchant customers will be pulled down because of the participation in the group, is no doubt the fact.

Group buying is not a complete business model

Aside from the extreme situation mentioned in the previous section, can a group purchase become an independent business model even if the parties do not violate the contract? Industry insiders believe that the reason for group buying did not appear some accompanying growth of the brand, more due to the lack of their own mode of purchase.

"If such as Fang Dou, Qiao Jiangnan out of a particularly cheap buy package, users will only think that group buying is really cheap, will not thank these brand catering businesses." Zhang said a group buying industry is very common phenomenon. "Even if you get the same service as a regular customer, the user who buys it will rarely spend it at the same price, he will choose another buy package." ”

As a result of group buying customers overall "cock silk" characteristics, brand merchants in the time to do group buying is usually more than the existing user "degraded" group, and such a downgrade theory for all levels of the Pyramid restaurant brand. Therefore, Pizza Hut, Starbucks and other front-line brands rarely participate in group buying, they will do some of the most modest coupons.

According to the Zhang analysis, for more alternative relatively strong small and medium-sized catering businesses, although the overall demand for catering industry is increasing, but specific to many small and medium businesses, business is increasingly difficult to do. Loyalty is getting lower because of more user options. And these merchants to buy as a "life-saving straw", repeated use.

If a frequent online merchant forcibly stops buying, a single shop owner or shop-keeper will have to endure the time of the store from the crowd to the scarce, perhaps months, or never recover. Most people are unwilling to take the risk.

It is well known that marketing activities should be staged rather than long-term. such as the cat created the "Double 11" shopping festival, Jingdong Mall provoked the "618", these are staged promotions.

If the promotion of the whole year, will create a brutal result, in the merchant, user, third party buy platform tripartite relationship, the most damage is the merchant, the user and Third-party platform are profit side. This kind of "blood-sucking" development, naturally will not be born a brand based on group buying development.

Zhang made an extreme assumption that if all the small and medium-sized restaurant bosses joined together, they would not do group buying. Then everyone's business will return to do not do group buying time, even if not better than now, but definitely not worse than now.

Where is the future of the group buying industry?

The future of the group buying industry is closely related to the future of group buying sales. In view of the current group buying industry is still in the "Happy enclosure", do not know when to realize the status of profit, sales staff either choose to devolve to a new city "open Xinjiang", or stay at Headquarters with the team. But this is not a long-term solution.

What can be expected is that group purchase sales of the work of the technical content is getting lower. A few years ago, sales staff need to explain to the merchant, what is a group purchase, what is the Internet, how to set the package, how to marketing. And now, the market education is very clear, sales do not even need to go to the store, as long as a telephone maintenance can update the package.

Another reality is that the group buying industry has developed to the present, only in the less competitive three or four-line city can achieve profitability, and in Beijing, Shanghai, such as the Super City, all group buying business are boiling each other, consumption. And the performance of the sales staff is a water commission plus profit Commission, the biggest head of the performance of the Water Commission.

In Beijing, group buying industry has many more than three years old salesman, although the income has not increased how much, but still in line. These people stay in the company is not for the industry prospects, but to endure the listing of companies hoping to have a chance, of course, there are many people do not want to wait to choose to leave.

"Compared with the development path of the traditional industry sales profession, the group buying industry is more like a pure consumption." "Zhang thinks. Of course, if the company has a variety of business and not just rely on group buy a single item, leaving the choice of grass-roots staff more space. If you can understand the catering industry internet marketing, to the catering group party A, or their own business, are good results. But apparently, the sales staff in the group buying industry did not enjoy the benefits.

It is understood that the United States are now relying on group buying started the U.S. regiment is also trying to force the cat's eye film, the United States Regiment hotel, commercial WiFi, such as the transformation of local O2O attempt. and the public comments on the original construction of a relatively complete ecological, group buying is just one of the business, to provide a comprehensive marketing solution for the merchant is its main direction. and Baidu Glutinous rice is also packaged into Baidu's lbs strategy, has not been completely independent form.

In addition, the group's most advantageous users in the three or four-line city, and even if the increase in the hotel, film vertical industry, but also to buy as a single point of view, its user base on the price is more sensitive. And the advantages of the public comments in the one or two-line city, because of its integrated marketing approach to the aggregation of users is relatively diverse, many users care about experience, service and quality of the synthesis, not only care about prices.

It seems that the "read crooked" group buying is destined to be a transitional product. Even the originator of Groupon is not immune. Groupon's share price fell from $20 to $2 and is now stable at around 5, 6 dollars, and is no longer favored by capital. It seems that the limited group of the United States to try to go public, need to find another story.