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Gao Peng's Groupon Listing Accelerates &Nbsp Revenue, And Margins Are Still Squeezed.

2011/6/3 15:41:00 81

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Gao Peng CEO Ouyang Yun

Introduction: foreign media wrote today that

Groupon

Starting IPO (initial public offering), the company's joint venture in China, Gao Peng is also accelerating revenue generation, but under fierce market competition, margins are still squeezed.

Fierce competition

Groupon's joint venture in China needs more time to make profits. Not only that, its profit margin is also lower than that of its parent company, which highlights the differences between China and the United States in the Internet market.

Ouyang Yun, head of Groupon and Tencent's joint venture, Gao Peng, said: "too many competitors are squeezing.

Profit margin

Yunfeng fund also owns a stake in Gao Peng.

"It will take much longer to recover the investment," he said.

Ouyang Yun said.

His comment is at the moment when Groupon starts IPO.

China now has more than 2000 emulated models.

Groupon

The group buying website is fighting for market share. In order to attract users, many group buying pactions do not even receive commission at all.

Ouyang Yun disclosed that the group buying activities of movie tickets were very competitive, and the profit margin was zero.

He added that in order to increase users, Gao Peng could not avoid being vulgar.

But he refused to disclose Gao Peng's income and profit margin data.

At present, Gao Peng has 3000 employees and has covered 50 cities in China.

Coping strategies

The company hopes to adopt more

Electronic Commerce

Group buying makes up for the loss of profit margins.

E-commerce retailers provide products such as cosmetics, footwear and clothing through group buying pactions.

In such pactions, group buying sites can often get a maximum Commission of 100% of the coupon value, because these retailers only consider group buying as a promotional activity.

"Compared with Groupon's business in the US, we hope that e-commerce can occupy a higher proportion of revenue."

Ouyang Yun said.

However, the industry believes that the competition pressure of e-commerce group buying is increasing rapidly as the competitors of Gao Peng want to increase revenue before IPO.

According to the volume of pactions, the U.S. group network in May this year, China's group buying market is in a leading position.

An industry insider said the company has launched zero Commission trading.

According to people familiar with the matter, Groupon has set up a very radical June revenue target for Gao Peng, and is trying to raise revenue before Groupon IPO.

Gao Peng is also expanding through acquisitions.

Ouyang Yun said that the company has acquired several group buying companies to help them enter some smaller cities, and this strategy will continue in the future.

Ouyang Yun is an executive of Tencent. His title is COO, but he has exercised CEO's responsibilities and has introduced 4 general managers from Gao Peng.

"They offer me tips on selling skills, quality assurance and editorial work."

Ouyang Yun said that when Groupon's business matures, these executives will leave.

Groupon's top executives include helping the company expand its market in Brazil and South Africa.

It is also reported that Groupon CEO Andrew Mason (Andrew Mason) will visit China next week.