Group Buying Websites Lose Money And Layoff Points Disappear: Huge Amounts Of Advertising Can'T Make Ends Meet.

Since last year, many VC and powerful predators have been involved in the group buying field. The whole market is in a state of fanaticism. They are burning money to endorse, advertise, and speed up their expansion.

However, as consumers become more rational, more and more enterprises begin to think about their market core values and how to do well in services. VC's investment is also rational.

Group buying industry grows from barbarism to marketing war.

Huge sums of money can't make ends meet.

In today's intense competition in e-commerce market, it is difficult to get a large number of users if they do not burn money for advertising, but spending money on advertising may not necessarily bring the corresponding benefits.

Jingdong mall CEO Liu Qiangdong said recently that the end of this year and the first half of next year will be the advent of e-commerce, and this winter has arrived nearly a year earlier. Judging by the coming of this winter, the marketing cost of many companies has exceeded sales.

In the unaudited earnings report released by the first year of the first year of the social networking website, the net income of the company's first group was $900 thousand, but its operating expenses reached $4 million 600 thousand.

In fact, the 4 million 600 thousand dollars are mainly the expenditure of brand advertising fees, that is to say, the waxy rice net needs 5 yuan to exchange for 1 yuan business.

However, the latest Chinese group buying statistics report released in May 2011 shows that the group buying market has experienced unanticipated stagnation. In May, the total sales volume of the 40 major cities in the country was 649 million yuan, representing the first decline compared with 650 million yuan in April. 800

Money should also be allocated.

On the one hand, it is a large amount of money to put money into advertising. On the other hand, sales are significantly reduced.

The problem is not only that, in order to win more market share, many group buying websites have launched sweepstakes, ultra-low prices to attract users, have reduced the rebate, and even pay their own money to do the market.

A well-known group buying website staff told reporters that the Sinopec oil card project before the F regiment in Hangzhou may need to be posted to about 10 yuan per card.

"They bought the oil card at the original price, then sold it at a 10 percent off discount, and they could also make an invoice. It was a loss making money."

The source told reporters that the current industry market habits have been formed.

Reducing staff wages in disguised form

The group buying practitioners revealed that in order to save money, many group buying websites began to cut people or reduce wages in disguised form.

He said that before the crazy recruiting and digging, the company's internal staff redundant, "more time, a small stop and even hundreds of people."

He said that some colleagues had switched jobs from another group buying website. "They gave employees very large task targets, which led you to fail to complete them, so that the company had reason to fire them."

He told reporters that some group buying sites generally only stay for 2 months after recruiting people, "no correction, dismissed employees do not have to pay more than 1 months of wages, and this person will be signed by the old employees to take over."

The second tier camp will be hard to get investment {page_break}.

At present, sales of group buying websites are stagnant, which is in sharp contrast to mass advertising, which leads to more considerations for venture capitalists in the new round of investment.

Zhu Xiaohu, a venture partner at Jinsha River, has said that investors are now in a hurry to cash in, but it's harder to get new funds.

Analysys International analyst Chen Shousong believes that there are still some group buying sites have the opportunity to get follow-up.

Financing difficulties will undoubtedly accelerate the death of the two or three line website. Chen Shousong believes that the turning point of group buying industry is now available. In the end, there may be only about 10 nationwide group buying websites, and the number of local websites will also show a sharp decline.