Will the group buying site be profitable?

Summary: The group purchase website will realize the profit? A few days ago, Litters Mall Chairman and CEO Xu Maodong said to the media, litters has achieved millions of of the profit, became the last October full network announced 1 Yuan profit after the first to achieve the scale of the profit of the group purchase site. and

Group buying site will be gradually realized profit? A few days ago, Litters Mall Chairman and CEO Xu Maodong to the media, litters has achieved millions of of the profit, became the last October full network announced 1 Yuan profit after the first to realize the scale of the profit of the group purchase site. Recently, there is also news that the U.S. group will also announce profits.

"At present, litters's gross profit margin reached 8% to 10%, the U.S. listing only to the US Capital market window opened." Xu Maodong told reporters. So far, there have been full, litters announced the realization of profits, the United States Group has said it will be in the fourth quarter to achieve profitability. However, as a result of the previous group buying industry brush Group purchase volume, fake, closed or even run away, such as integrity issues, the announcement of profit has also been questioned by the market.

In this respect, group 800 founder Hu Chen said, from the data, the realization of profitability is possible. But whether it is persistent is not good to say. He analyzed that last year the whole year group buying site is in control of costs, and strive to increase gross profit. For example, the previous is ultra-low 12 percent, the industry average is 30 percent, and this year the industry average of 40 percent, in addition, litters mall is to do the normal discount, generally in about 50 percent, so the enterprise margin increased a lot.

But this hard-won profit is likely to be a seasonal factor. Hu Chen Analysis, the end of last year is the peak purchase, movie tickets and catering to buy up a peak, if the seasonal profit is not a sign, but also need to observe the follow-up performance of group buying enterprises.