Singing crooked buy through

"In the group buying industry four years, the biggest confusion is that I did not find a group buy 'growth' businesses. Of course, I have very limited personal growth." June 15, from 2010 onwards Group buy the industry hard, after several group buy company, has now begun to do sales management Zhang Xin (a pseudonym) so sigh.

Groupon "originator" Groupon was established in 2008, became a phenomenal product for a time and was listed on the NASDAQ in 2011, its original intention is to focus on the user's procurement needs, and businesses to achieve a direct docking. This saves the middle of the channel costs, users get the benefits, and businesses can buy as a marketing act, contact with more users.

With the popularity of Groupon, domestic buy sites flocked to. Once more than thousands of buy sites, although only a few after the baptism of a few sites still survive. But still did not change a status quo, with the development of this mode of group buy, and gradually toward an extreme, as a "crooked" by.

Over the past four years, Zhang Xin saw many domestic businesses make money through the group buy industry, there are many due to bankruptcy, but so far have not seen a merchant through Group buy to achieve brand value.

Earlier, he experienced the growth of roasted whole fish outside the riverside from a 200-square-meter single store to the growth of more than a dozen chain stores. He learned that Vivid Cake has transformed the cake from a completely unknown source to a five-star hotel provider. Say that the public comment on the achievement of these brands is not objective, but public comments on its brand has definitely played a role of value-added. Comments on these brands from the public Comments on the promotion time with the public comment on the close cooperation, in addition to business page display drainage, but also with comments on the group buy, coupons and other marketing methods, basic and public comments to achieve "accompanied by growth" .

So buy this model in the country is how to deviate from the original?

Double damage in violation of the contract

Fundamentally, the group buy connected users, merchants, merchants through the use of this low-cost group buy promotional means to increase one to reach the user's opportunity. Broadly speaking, buy now divided into buy-in-kind and service buy. In-kind buy a poly cost-effective, No. 1 group and other e-commerce buy, and the only product will be, the United States and the United States excellent product "flash purchase" model is actually a buy. In addition, the main service refers to the group needs to enjoy the life of the physical store-related buy, the typical representatives of the United States Mission, the public comment, Baidu glutinous rice, handle group, nest Wo mall.

The nature of buy or buy is a bit similar to commercial real estate. Commercial centers rely on a variety of preferential policies or even free first-line brand settled, to attract passenger flow after some of the second and third tier brands can charge a high rent. The group buy or flash purchase is the same, through very low prices to sell products quickly gather popularity, through the user's additional consumption or secondary consumption to achieve marketing effectiveness.

Study its essence, buy itself is a marketing tool. Such as the small pot of hot pot brand will be used in the promotion of new products buy, to test the user preferences of new products, as well as the user's price sensitivity. These data will be used as the basis for the next marketing decision.

However, Zhang Xin believes that domestic buy is "crooked" because the merchants breach of contract, reducing service quality, hurt the user; or buy platform violation of the contract, simply to increase trade flow, the development of low prices damage to businesses.

According to Zhang Xin actual combat experience, often appear in reality in two situations. One is that the merchant gives a very favorable package, the user arrives at the storefront, but the merchant's service attitude is not good, or the dish component is less, and even the "pitcher" event of "steak being replaced by beef." Such businesses can make money in a single group marketing, but the user experience is poor, resulting in a basic buyout users did not result in the retention rate.

Another extreme situation is the performance of buy sales clerks trading water and revenue tips, including trading water dominate. And these clerks will "flicker" some do not know the business sector to do some very aggressive package, so the result is the transaction flow, but the business unit price will be pulled very low, long-term business will also be Cause damage.

Zhang Xin introduced in the restaurant industry, barbecue and hot pot do buy packages, profit margins will be larger. Because compared with Chinese food, the cost of buffet and hot pot is relatively low, and the supply chain is much simpler.

In other words, because hot pots and barbecues are fixed, the merchants can make profits even after they have done a small meal from the serving size. If consumers add some extra spending, this group buy even more cost-effective. Therefore, relatively speaking buffet of these two industries, although it will reduce part of the customer price, but in general it is profitable.

The most damaged is Chinese food, dinner. Zhang Xin revealed that the customer price of less than 200 yuan in the Chinese restaurant net profit between 8% -15%, once on the line buy, the salesman will recommend a 2 course, a 4-6 course package, a 10-person group meal, Add another coupon product. This structure can be divided off more than 80% of the shop to consumers, and customer price will be pulled very low.

And buy the salesman is best at saying is, buy to help catering business sales marginal residual value. The implication is that the rent and labor costs of a business unit are fixed. On the basis of this, more sales of one package are additional revenue.

The fact is, with the development of the mobile Internet, many users arrive at the merchant before they start to consult whether the group purchase and the purchase and use of the site order. It is difficult to define whether a customer is coming online to a merchant or whether the merchant's own user gets more offers through a group purchase. However, on the whole, it is beyond doubt that the unit price of Chinese businesspeople will be dragged down by participating in group buying.

Group buy is not a complete business model

Put aside the extreme conditions mentioned in the previous section, even if both sides do not violate the contract, that buy can become an independent business model? Insiders believe that the reason why the group did not buy some accompanied by the growth of the brand, more because of buy their own models Defects.

"If a square beans fishing, South Beauty out of a particularly cheap buyout package, the user will only think that buy really cheap, certainly not thanks to these brands catering businesses." Zhang Xin said a group buying industry is very common phenomenon. "Even with the same services as regular priced customers, sellers who purchase for the group seldom pay at regular prices, and he will choose another group purchase."

Due to the overall "reeling performance" of group purchase customers, brand merchants usually attract demographic groups than existing ones when doing group buying. Such downgrading theory is applicable to catering brands at all levels of the pyramid. Therefore, Pizza Hut, Starbucks and other first-line brands rarely participate in group buy, they will do less with the most coupons.

According to Zhang Xin analysis, for more alternative small and medium-sized restaurant operators, although the overall demand for catering industry is increasing, but specific to many small and medium businesses, the business is more and more difficult to do. With more and more user options, loyalty is getting lower and lower. And these businesses buy as a "life-saving straw," repeated use.

If a regular online merchant forcibly stop buying, a single store owner or manager, to endure the arrival and departure of people from store to shop in sparse time, may be a few months, may never be able to recover. Most people do not want to take this risk.

As we all know, marketing activities should be phased, rather than long-term. Such as Lynx build "double eleven" shopping festival, Jingdong Mall provoked "six one-eight", these are stage promotions.

If the annual sales promotion, will result in a brutal result in the business, users, third party buy platform tripartite relationship, the most damaging business, users and third-party platform are the profit side. This "vampire" development, of course, will not be born a reliance on group purchase development of the brand.

Zhang Xin made an extreme assumption, if all small and medium restaurant owners together, do not buy. Then everyone's business will return to do not buy the time, even if not better than now, but definitely not worse than now.

Where is the future of buy industry?

The future of the group buying industry is closely linked to the future of group buying and selling people. In view of the current buy industry is still "staking their land", do not know when the profitability of the current situation, the sales staff either choose to go to a new city "to open up", or stay in the headquarters with the team. But this is not a long-term plan.

It is expected that buy and sell the job of the technical content is getting lower and lower. A few years ago, sales staff need to explain with the business, what is buy, what is the Internet, how to make packages, how to carry out marketing. Now, businesses are very educated by the market, sales do not even need to go to the storefront, just a phone call to maintain the package can be updated.

Another reality is that the group buy industry to now, only in the less competitive third- and fourth-tier cities can be profitable, but in Beijing, Shanghai, such a super city, all buy business are boasting each other, consumption. The performance of sales staff is commissioned by the profits and profits commissioned, commissioned by the highest percentage of performance.

In Beijing, there are a lot of old clerks who have been in the group buying industry for more than three years. Although the revenue did not increase much, they are still in the forefront. These people stay in the company is not for the industry prospects, but boil and other companies want to have a cash on the market opportunities, of course, there are many people really do not want to wait and choose to leave.

"Compared with the traditional industry sales career development path, the group buy sales more like a pure consumption." Zhang Xin believes. Of course, if a company has multiple businesses instead of relying solely on a single buy-in, leaving more choices for grassroots personnel. If you can understand the Internet restaurant industry, marketing, food and beverage companies to Party A, or their own business, are considered good results. But apparently, group buy salesmen did not enjoy this benefit.

It is understood that the current group relies on the United States also started trying to force cat film, the United States Mission Hotels, Business WiFi and other transformation of the local O2O landing attempt. The public comments on the original build a more complete ecology, buy one of only one business, providing integrated marketing programs for businesses is its main direction. Baidu glutinous rice has also been packaged into Baidu's LBS strategy, is not completely independent form.

In addition, the most advantageous user groups in the U.S. delegation are located in tier-3 and tier-4 cities. Even with the deepening of the vertical industries of hotels and movies, the group still has a single-point view of group buying. Its user base is price-sensitive. The advantages of public comments in first and second tier cities, because of its integrated marketing approach is relatively diverse users, many users care about the combination of experience, service and quality, rather than just care about the price.

It seems, was "crooked" group purchase is destined only a transitional product. Even the "originator" Groupon can not be spared. Groupon shares once dropped from 20 US dollars to 2 US dollars, but now stable at around 5,6 US dollars, is no longer favored by the capital. It seems that the United States group is limited by the group buy if you try to market, need to find another story.