Ah Ya Huang Zhihua: "Let Them Burn For A While!"

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"Every day we receive dozens of advertisers calling for cooperation, and hundreds more are related.

Advertisers are all arrogant now. It seems that our group buying website is not like advertising.

Ah ya CEO Huang Zhihua said so recently.

More fear of being reduced to a group buying site, and began to rush to smash advertisements.

Almost overnight, the major group buying websites, including handshake, beauty corps, glutinous rice net, and public comment network, turned into a big advertiser.

From CCTV to the subway, from the media to the outdoors, all kinds of group buying advertisements are covered by all kinds of media under the line.

Even personal e-mails, from time to time, will receive a promotional email from a group buying network.

However, not all participants can afford to play this capital game. Some small and medium-sized websites have actually withdrawn from the group buying stage, and Internet recruits have begun to shrink their fronts after experiencing the labor pains.

Small and medium-sized websites are out of nowhere.

In January this year, Mr. Lee sold his group buying website, which he founded by himself, to less than 20 thousand yuan.

Later, one of the three entrepreneurial partners went to the civil service and the other returned to the insurance salesman.

"The threshold of group buying website is low. Several friends have spent ten thousand yuan to buy a domain name, and rent a server has started."

Mr. Li said frankly.

Mr. Li believes that if we want to succeed in the group buying website, we must have a good marketing channel, and the two is to have a strong business development team.

"For example, glutinous rice, there is Renren, mop so that their own channels to promote publicity, pushing a product can immediately attract a lot of popularity, do not worry about users."

During his pioneering work, the biggest single group sale he bought was a movie ticket near the Songjiazhuang subway station in Beijing, which sold more than 50 copies.

Each two movie tickets, group buying price of 42 yuan, but the cost from the theater is 40 yuan, plus some 10 yuan coupons to some users, "not a penny earned."

"If you don't get it, group buying will never make money."

Mr. Li said, "now these websites are burning money and burning.

Several of our newly graduated students can only afford to quit when they can afford advertisements.

Small and medium-sized websites can not afford advertisements. There are also "heterogeneous" advertisements that do not advertise in the online group buying websites.

In 2010, the Arab League group, which invested hundreds of millions of yuan in Shanxi coal boss's investment, did not have much movement in advertising recently.

"They burn us dollars, and we use Shanxi people's money, which is the essential difference between the Arab League and their people."

Huang Zhihua said, "we want to use every penny of the management to maximize input.

Of course, this is not to say that we will easily withdraw from the first camp of group buying website, but to adopt a more effective marketing strategy.

This rational attitude is fully reflected in the current advertising war.

Huang Zhihua said that in 2011, the group buying market competition was becoming increasingly fierce. The first group to benefit was not the group buying website. The crazy advertising investment made advertisers full of money, and most of the group buying websites had gone through a spell.

"Obviously, they burn money so that they can grab shares and make the next round of financing.

This is also a good thing for the group buying industry, which has lifted the group buying into a mainstream industry.

Huang Zhihua said, "let them burn, burn more netizens, burn more Internet consumption habits, and burn more group buying fans."

Huang Zhihua said: "now the group buying advertising war is very similar to the Internet bubble period 10 years ago. This is neither rational nor healthy.

According to the current situation, group buying website will burn a batch of "burning", a group of "scared to death", and a group of "starved to death".

Group buying websites are very popular nowadays, and the fundamental reason is that the prices of the products are cheap.

Statistics of China group buying market statistics in 2010 showed that the total sales volume of group buying websites from June to December last year amounted to 1 billion 785 million yuan.

If the average discount rate of group purchase items is 67% off, the domestic group buying website has saved about 4 billion yuan for the netizens throughout the year.

According to happy group's own estimate, the website has already saved billions of money for consumers.

Happy group buying for the Beijing Shanghai white collar launched the "Happy Hour" the first single - 1 yuan to buy fresh air paper, 1.5 hours, 2000 products will be sold out; happy group shopping April Fool's Day "happy moment" second single - 1000 1 yuan Jingjia whitening mask, 50 minutes will be sold out.

The industry believes that the group buying network "small profits but quick turnover" sales strategy, so that consumers get tangible benefits, and many brands are willing to buy the platform through the group to give the brand promotion of this added value.

Dare not reduce advertising

This is a crazy advertising campaign.

In February of this year, the group launched tens of millions of dollars, and signed 3 big stars, Peter Ho, Lan Qin and Yu Na.

In March, the group announced that its 2011 full year advertising will cost 550 million yuan, which will be fully publicized in the media such as CCTV, Hunan satellite TV, Jiangsu satellite TV, national subway, Focus Media, bus body and other media.

Waxy rice network announced the launch of 200 million yuan advertising, the first landing on CCTV, and then spread to the local satellite TV and local channels, including Jiangsu satellite TV, "if you are the one" and so on, and also includes the major cities subway and building sub advertising terminal.

During the Spring Festival, the 24 voucher group purchased its advertisements in CCTV's seven days of the Spring Festival. Besides, the 24 coupons also indicated that they would intensify their efforts in 2011 to launch mass advertising such as TV, subway and outdoor.

Since its establishment in the past 8 years, there has been little public comment on advertising. It has also announced plans to spend 300 million to 400 million yuan on the group buying business advertisement.

In addition, F group, jumei.com and so on also joined the advertising war.

Most of the first group buying websites have already absorbed two rounds of venture capital, and the pressure from the capital to the website is increasing.

Investors value the growth rate of business, crazy advertising, will naturally give the website a high volume of traffic, so now everyone is spending more money.

But this kind of carpet bombing advertising input and output ratio is not high, group buying market is too irrational now.

Xu Gongjun, a senior marketing personage, said.

Xu Gongjun believes that at present, the advertising competition level of group buying websites is not high, and the media selection and advertising appeals of homogenization reduce the communication effect.

Advertising communication is only natural performance based on solid product and excellent service.

Wu Bo CEO has felt that there are irrational factors in advertising such as group buying. At present, the biggest cost of the handover network is also the marketing cost. However, he admits that he is afraid to cut down advertising, just like a short track speed skating. He does not want to take the risk of being thrown away.

Long Wei, vice president of the public comment network, also has some helplessness: "in such a noisy situation outside, when people put a lot of ads, and you do not vote, you will be drowned."

Tactically speaking, the public comment network is sniping.

Others believe that the bubble in emerging industries is not terrible.

Chen Weiguang, a blue chip venture partner, believes that every new industry will always have bubbles, because investors have high expectations, mainly depending on whether the start-up companies can do their best to achieve their expectations.

In the e-commerce industry, even if Dangdang and other mature companies, it is not easy to completely monopolize the market. Instead, it is a start-up company that can quickly find opportunities.

"Group buying is the most important two points, to solve the needs of small and medium businesses, and to maintain cash flow, first to receive the money."

Chen Weiguang said, "entrepreneurs should pay attention to whether they can ensure the quality of service provided by the business to meet the needs of users, and large websites also provide group buying services. Simply buying group websites can not compete with large websites."

Service quality is the root.

The investment power of the Arab League group, the Beijing alliance power Cci Capital Ltd, is almost the same boss of Shanxi coal. Huang Zhihua himself had opened a coal washing plant in Shanxi Linfen in his early years.

This group buying website, which doesn't take the US dollar venture capital and rely on the Transformation Fund of Shanxi coal boss, is experiencing the labor pains and redefining its strategic direction.

"Ah Ya" is not "burning", nor is it afraid of "frightening". At present, efforts are being made to "eat" and let the sub station "eat enough", so that employees can "eat enough" and "eat enough" to work harder to fight again.

Huang Zhihua said, "in fact, after the adjustment before and after the Spring Festival, ah Ya has introduced new shareholders to join, and the strategic objectives are more clear."

Huang Zhihua said that as a test field for new Jin merchants to invest in the Internet, ah Ya group can effectively control costs and respond to market changes more rationally and calmly.

He also revealed that ah Ya is planning to launch a vertical group buying website specializing in the sale of cosmetics before and after May 1.

The headquarters of the Arab League group is located in the 24 floor of Hualong building, North Third Ring Road, Beijing, and another group buying website jumei.com has also been working on the 14 floor of the same office.

In March of this year, jumei.com got tens of millions of dollars in investment and then moved to Kun Sha center in Yansha business circle.

According to Chen Yu, one of the founders of jumei.com, female cosmetics are rigid demand. Jumei.com sells 20% of the best selling cosmetics, so as to draw more energy to do service to ensure the quality and service level of the goods.

This unique group buying mode has been recognized by angel investors Xu Xiaoping and the top venture capital institutions Sequoia Capital.

This vertical group buying website, which was built up under its own eyes, gave Huang Zhihua a lot of inspiration.

At the time of the completion of the medical operation, the Arab League decided to be the largest group buying website for girls in China, and plans to launch a vertical group purchase website specializing in selling cosmetics.

Even if we don't take us dollars and rely solely on Shanxi's capital, we need to build the largest female group buying website in China.

Huang Zhihua said.

Groupon, the originator of group buying website, provides only group buying services in the United States, "because services and specific products are totally two different practices."

NEA Jiang Xiaodong, general manager of China, believes that group buying products will inevitably involve after-sales service, quality assurance and inventory.

However, the Chinese group buying market is not the same. In the female market and mother infant market, vertical group buying websites appear to be a trend.

The analysis report of independent third party statistical analysis service provider CNZZ also shows that physical online shopping occupies a large proportion of the whole group buying paction. Currently, more than 2/3 group buying projects are physical online shopping.

Together, the founder Wang Weiming set up a training course group buying website and started a vertical group purchase for training.

Wang Weiming said, "in fact, most group buying websites are just hanging on the cloak of group buying and doing B2C things."

In the unique Chinese group buying market environment, jumei.com, which makes cosmetics group buying, is also pforming to B2C, building its own purchasing, warehousing, logistics and distribution teams.

As the "light company" continues to gain weight, both the Arab League and jumei.com are eager to work hard in terms of product quality and service.