Why do 360 need litters Regiment?

Absrtact: Not long ago, the new sharp O2O Media cable home has been said that 360 or will buy litters regiment. The news was not taken seriously because it was April Fools ' Day. At present, the group buy five only litters group and handle network also remain independent, but recently a number of senior analysts

Not long ago, the new sharp O2O Media Link home has been said that 360 or will buy litters regiment. The news was not taken seriously because it was April Fools ' Day. At present, the group buy five only litters and handle nets also remain independent, but recently a number of senior analysts to the author revealed Alibaba is about to acquire the handle, if the news is true, then the litters can buy the giant may also only 360.

Why do 360 need litters Regiment?

The author in the "Qihoo 2014, still have to go through these several" a article has mentioned, 360 mobile phone guards and mobile phone assistant layout can not prop up the mobile future. PC-side It can be a spoiler, but the mobile end is especially in the demand side on the platform, it can not only be a spoiler, but should be a leading consumer demand leader.

The real demand for mobile internet is no longer advertising and gaming, but how to jump into traditional businesses, understand their needs, do depth, and do what traditional businesses want. The power of mobile Internet is here. It's not in the old-fashioned way. The advent of mobile internet is the real meaning of the Internet, its impact on traditional industries is fundamental.

1, Money change time, of course, not necessarily in cash. For 360来, this is the only way to O2O the threat of Baidu, and fast. Litters Group in the independent group in the internal management, the number of businesses and offline team has a certain advantage, and Suning, Jingdong, poly-cost and other litters group have cooperated, this Ali is urgent.

2, for the Litters Regiment, under the conditions of limited resources have been maintained in the industry's third is not easy. If Ali or 360 strong import resources to support, there is a lot of room for development. At present, the first three of group buying industry has entered the profit balance period, will not become a burden.

3, 360 to enter the mobile end, must be in the search outside the force. Follow the pea pod use the distribution portal to transform mobile search, and to build integrated services around the user's life and needs, tamping the foundation of mobile business. and map, O2O service, is to create ecological necessary supporting measures. At the same time, can also take this into shopping search and other fields.

4, the most direct, stimulate the share price. With the increase in the search share, 360 of the market value exceeded tens of billions of dollars, but in fact, 360 search commercialization has not really begun to form a real support, but Tencent, Ali broke through hundreds of billions of dollars, and Baidu is bigger. If there is another O2O strategy landing, 360 of the market value can be quickly pulled.

In fact, this is what we often refer to the O2o,bat the three giants are active online layout, as ambitious to become the fourth-largest 360 can not not be a certain action in this respect. In fact, 360 already had their own group buying navigation, this and the original Baidu to buy glutinous rice before the layout is more similar. Baidu through the group buy navigation upgrades, directly to consumers in the Baidu group to complete a one-stop consumption after the acquisition of glutinous rice. Therefore, 360 to enter group buying in my opinion has become inevitable. Maybe we can find out the real reason why Qihoo 360 acquired the litters group from the analysis of the Wired family.

Litters group development process, from industry first to four

Every family has this difficult to read, each enterprise faced with the big environment, although the basic same, but specific to a company's entire development process, but often because of the details of the process and lead to the opposite result. In the face of group buying this high-speed development of emerging industries, litters group has led the development of group buying industry, but now has gradually lagged behind the United States and other competitors. The author Combs The development course of the litters Regiment, helps everybody to understand the reason which the litters Regiment at present is in the awkward realm, hoped can give the O2O practitioner some inspiration.

Group buying is mostly for the local life service industry, many of the businesses are not net. You can't ask for a 100-seat restaurant with full information. Traditional media for these enterprises, marketing costs are too high, these companies have been looking for a low-cost marketing. For the user, they are eager to get cheap quality, novelty and fun services. Under such a background, group buying came into being. An unintentional inserted Liu, a collection of online "Avatar" low price ticket of the imagination, let litters Group founder Wang Yun understand to buy this has the huge development potential business model. Only three months of tension planning, litters group at that time as the first batch of domestic group buying website officially online.

At the beginning of the development of the Litters Regiment, Wang Yun clearly understand that for group buying sites, the biggest sadness is that users buy your products, but never remember your brand. If the group purchase site provides no differentiation of products, we will not remember you. In the market with a large number of competitors in the case, group buying will gradually go into the low price cycle. And low price is never bring the user stickiness, only the continuous provision of a good consumer experience to enable consumers to identify with you. This requires group purchase site staff to experience most of the cooperation, to ensure consumer experience, and to pay attention to continuous innovation, the only way to solve the user "what-play, where-where to play, who with whom" the life of leisure needs.

Later, after the litters group was Xu Maodong acquired, Xu Maodong proposed "The Wal-Mart model in group buying." In Xu Maodong's idea, the group purchase website must like the big business Super Wal-Mart to do the service, can in the quality control, the logistics, the customer service and so on aspect achieves the high standard. For consumers of group buying sites, they are directly facing group buying sites, not businesses. The user buys the service and the product in the group purchase website, the group purchase website should undertake all.

This seemed to be a certain subversive at the time, to a large extent to solve the trust in the initial group buying market, the important issue, The Litters Regiment in August 2011 is more than 171 million yuan sales over the handle net of 161 million yuan and the United States network of 133 million Yuan, ranked first, and in the subsequent long period of time to maintain a relatively advanced. However, in the group 800 released March 2014 China Group Purchase Market Statistics report, the Litters Regiment to about 417 million yuan turnover only ranked fourth, far behind the former rival United States network.

These three big reasons, perhaps the main factor that litters will be shuffled

Reason one: Lack of team cohesion caused by rapid expansion

The formal development of the litters Regiment began with a merger. October 2010, Xu Maodong wholly-owned acquisition of litters Group. At that time, the monthly sales revenue of the group purchase website was only 2.6 million yuan. The month litters group carried out the first foreign mergers and acquisitions, after 3 months is Bang won the Xiamen Flash Regiment, Guangxi Good Orchestra, Jilin Meimei Group, Ningbo dumplings, Shanghai shrimp, Jinan 0531 group, including more than 20 local group purchase website. With other group purchase site rolling development, litters group in a short period of time through the "Mergers and acquisitions" of the way quickly in the country 150 cities in full swing. Group buying enterprises have a large number of practitioners, in the face of hundreds of urban stations and thousands of or even tens of thousands of employees, such enterprises must have a unique corporate culture, in order to unite so many young people. And through the rapid merger and acquisition expansion, the new employees can not be well integrated into the team, the team cohesion is seriously inadequate.

Reason two: The power system is too fragmented to standardize the experience

has been litters group relish the rhetoric, is the United States Regiment headquarters centralization system. This model of a consistent pattern, in the later more intense competitive environment can not maintain the advantage. It is true that consumers in different regions may have a certain degree of difference in the services they need, and are flexible in adopting effective strategies for local business morphological features. Fully decentralized management system, to some extent, can indeed solve the deep regionalization of the operation, but the service, the standardization of the process is undoubtedly a major mishap. For group buying site, no matter how many city stations, a specific branch of the service provided by how high quality, but for users to handle the net is the handle nets, litters Regiment is the litters Regiment, he values the entire site's brand effect. When users feel dissatisfied with a certain service in a certain city, they may not be able to experience the service of the group purchase site. Centralized and decentralized system is the best of the bad, here is not good judgment, but we from now the United States Group to become the first group buying site, can spy one or two.

Reason three: Early collisions with giants, but lack of platform genes

China's internet can not leave the shadow of bat three giants, life service group buy as a fast growing industry, the Giants are not likely to give up such a piece of the trillions of dollars in the market big cake. In Xu Maodong view, group buying industry is going to a spiral cycle, there will be more consumers want to skip the group buying site, from the merchant dimension to find a long time to sell, more freedom of consumption of the ' big discount ', they would like to buy the activities of the sale and appointment time, space more abundant, perhaps in the future may enter a ' Pan group Buying era ', this is also why the Litters Regiment on the line 55 mall exerting force platform reason. In my opinion, this is precisely the biggest failure in the course of its development.

For a platform, traffic is life, and litters group as a group buying site does not have enough to support the flow of the platform, so the litters group will be combined with other group buying sites and Jingdong, market and other traffic giants, but these flows are obviously the need for resource output. In China, only 10% of the site's profit margin is even lower, in a country where even food safety is problematic, group buying sites also need to carry more social responsibility, do a good job in the management of products and services, these will undoubtedly require huge cost. Originally the profit is not high litters, also need to pay a huge amount of traffic costs, which may result in Jingdong, the market to make money, businesses make money, users enjoy the preferential services, but for the litters it has no advantage of fishing.

For the platform, the business Self-Service mode of offering group buying service although it seems to have a lot of development space, but think, the business can provide the service is uneven, the number of service items relative to the traditional group buying mode, so how to be a platform to ensure a good user experience?

For businesses, although group buying can to some extent make their idle service capacity to be fully released, but this fundamentally does not guarantee a stable sales. They want to be able to sell their service capabilities through group buying and develop potential customer base. Group buying sites help them do marketing, localize ads, and find our potential customer base. That is very stable for a specific area of consumer groups, when a saturation threshold is reached, the platform may no longer help enterprises to bring sustainable passenger flow. Those who do not come after a consumption of consumers to the business, in fact, the significance is not. A long period of time to provide discount services for businesses is not realistic.

For users, the choice of group buying site is because they can directly provide enough concessions to experience good enough products and services, this mall model so that a large number of group buying, special products, cash vouchers and other information explosion in the eyes of consumers, will let them have a choice dilemma. Especially for food and beverage consumption, many businesses provide prices, food is roughly the same, if the group purchase site in advance do not help consumers screening, they often do not know how to choose.

Once known as the group buying industry "dark Horse" litters Regiment, in the group buying industry, based on innovation, focus on the premise of local life service, gradually stand firm heel, and then rise. The author found that, then it's a series of rapid expansion, the team's internal cohesion, the giant's boundaries and other issues, resulting in such a dilemma. As for the litters group's once IPO dream, it now seems to have become a mirrors. The litters group is likely to be the next shuffle of the object, this is really sad unceasingly.