The mishap of group buying mode

The internal contradictions between the 24-bond founder and the investor have already led to the worst results--starting 20th this month, the 2.5-based company is suspended and will enter a period of "long holidays".

Last month, 24 coupons were exposed to the founder and CEO Du Yinan and investors in dispute, Du Yinan and investors on behalf of KK in the mail to each other accused each other to empty the company, the latter was Du Yinan unilateral dismissal. October 19, Du Yinan with the company's other management and staff signed a statement, said the investment party to take away the company 2.4 million of billions of dollars, causing the company's operations into trouble. In order to gain rights, the 24-voucher management decided to take the full leave to protest and put pressure on the investors to resume normal operations after the shareholder level was resolved on reasonable team incentives and funds.

Currently, the site cannot be opened. "The company decided to temporarily enter a period of ' long holiday ' from the perspective of the long-term interests of businesses, users and employees," the official statement said. Therefore, we will not be able to serve you in the next few weeks. We will resume our service for you after the recent adjustment. ”

24 Coupons Struggling to fall long unprofitable into a mishap

Group buying has entered China since 2010, stimulating entrepreneurial nerves. 2011, under the impetus of investors, group buying industry has become the most popular Internet zone, the market size has reached nearly 5,000. But no one thought, just a year later, the industry is extremely shrinking, once ranked the top ten sites have been transformed, merged, or even shut down.

In fact, the most fundamental reason for the 24 coupon storm is that it has not been profitable for a long time, and the capital chain is tight. Previous sources said that the 24-coupon capital chain rupture, will face more than 60 million yuan debt recovery. At the time, 24 coupons insisted that it had achieved a quasi profit, and that the next stage was to "make a penny and keep it".

But for a year, the brutal promotion of buying money has been proved to be unprofitable, the capital of winter has not yet ushered in a warmer day. According to KK, this August, 24 coupons money is very difficult, has been completely out of money, and based on the continued investment, and the Chinese Internet optimistic, KK representative of the Malaysian investor finite to 24 coupons to add 7 million U.S. dollars investment. The money, which has not yet been fully accounted for, is the trigger for Du Yinan to be on the side of investors.

The cost of continued investment is the investor's further control of the company, which led to the Du Yinan's decision to dismiss KK unilaterally, and now the 24-coupon executive's joint announcement of a temporary outage. In addition to requiring the investor to return the funds as soon as possible, 24 coupons also require that "the shares held by the team be cashed in the latest round of preferred Shares".

In addition to the purchase of the future express concern, many people in the industry do not agree with the 24 coupons of this "hostage-style" approach. "24 coupons with the investor's internal contradictions to coerce merchants and customers, in the love of the law are not tenable, the site will not survive the priority shares what significance?" "So hurry the sleeve now why?" ”

Most people believe that businesses and users are the biggest victims of this game of capital. For people concerned about the "aftermath of the problem", the 24-ticket marketing director said the company's suspension will not affect the accepted user orders, the site was not executed before 20th purchase orders are still valid. But it is understood that, because 24 coupons issued a statement and the official shutdown site only a few hours apart, many users even too late to deal with their 24-coupon orders and account balances.

Burning money to promote failure: outdoor advertising as a "crazy" guide

So, what is the cause of the group buying site once again in the face of the capital game embarrassed exit?

There is a point of view, the rise of the group buying bubble and the collapse of its unprecedented burning money and the relationship. According to statistics, 2011 Group Purchase site Advertising program has more than 1 billion. The logic of group buying practitioners is: money for exposure, change of flow, and then change the revenue, but it turns out that this logic is not going through the reality.

Or you can get a glimpse of group buying at the beginning of the madness-huge advertising spending behind, in addition to the founder of the drift and the acquiescence of investors, the original outdoor advertising media has played a role, or even counted on the group buying site leading to the crossroads of the first person.

In these outdoor media, the media is particularly interesting. In the customer list of the audience, handle, litters, regiment treasure, 24 coupons, F Regiment, full, glutinous rice in a row, said that the amount of the month to spend a long time to maintain in tens of millions of levels. The focus of the CEO Jiangnan spring to sell outdoor advertising on the group buying industry force, even for the Litters Group Financing conference platform.

Ecapital Capital CEO ran once in micro-blog feeling: "Every time I walk into the elevator, I believe more and more: In China's wind-buying market is the best to do the audience." ”

But the last, continued to burn money, low gross margin, vague profit prospects, IPO attempt failed, resulting in the investor attitude loosening, group buying site in the capital market repeatedly hit the wall. In the crisis of the capital chain, the group purchase site or forced to accept mergers and acquisitions, such as high friends and F group, or completely shut down the site to become history, such as corporate treasure, or under the pressure of investors to kick the founder, such as handle ...

The media, including media, has also experienced "great sadness and exultation". A survey shows that this June, group buying site basically stopped the outdoor advertising. A year, a frantic hasty ending.

O2O? The ruin of group buying website model

But some people will buy the site faded reason due to the pattern of shackles.

Electric Business observer Ruzenwang that the group purchase site from the beginning of the wrong way, a large advertising, the formation of a huge team, to compete for price, resulting in the entire industry's low margin, unsustainable mishap. "Once there are one or two problems, it is doomed to lose the full game." ”

And the originator of Groupon once as high as 50% of gross profit margin, the domestic group purchase site's gross profit margin only maintained at 5% up and down. Ruzenwang that the root cause is the domestic group purchase website Blind pursuit of low prices, so that business interests are impaired, so that the quality of service decline, reflected in the previous segment of the user experience also declined, loyalty greatly reduced, sustainable profitability became empty talk.

In Ruzenwang's view, in this environment, group buying mode should look for changes, first should start with the name. "Group purchase should not be called group purchase, called O2O more appropriate, O2O future fight is not low-priced and marketing, but convenient localization services." Mobile applications, smartphones, local shopping district ... These are new opportunities. "

Apparently group buying website also realizes this rule, since this year, shrink scale, reduce advertisement to launch, turn to mobile platform new opportunity already become the operation idea of most site.

Full network CEO Feng revealed that the full network is now in the transformation of the upgrade period, the financial pressure is not big. And the company's reform measures have received initial results, this September has achieved monthly revenue balance. In his view, the full network is currently not considered to be merged, "industry mergers and acquisitions in reducing costs and make up for deficiencies, but the effect of income is poor." The merger model of Groupon and Group F is not the best way to buy and purchase, and a similar route is a more effective means of change, such as the purchase and payment company or mobile development company. ”

For everyone in the listed companies, group buying business and other business integration is more urgent. Chen, CEO of Renren, said in an interview with the media that the sticky rice net is moving toward profitability, with losses shrinking and total merchandise sales likely to exceed $100 million in the next quarter. At the same time everyone is also looking for acquisitions, group buying and mobile gaming companies in the priority list.

Chen revealed that the company has put 45% of its employees into the mobile business, but only 10% of the revenue from mobile devices, mobile gaming products cash flow is positive, buy net glutinous rice moving part looks good, the development of better mobile payment services seems more important.