Group Buying Website Bidding Burn Money Feast Or Curtain Down

In order to grab a large business, more than a dozen group buying websites are sitting together. Bidding Every family tries to tell business What does it bring? At the end of the day, the group buying website, which is arguing with each other, resorted to a killer trick: not to improve. Sales volume "How much performance do you have? I will underwrite you."

Second days, 5 million yuan to the account.

This is the most intense time for group buying this autumn. A group buying website's customer director said that in the most intense months of competition, every group purchase was all about shopping. Underwriting, advertise and advertise. Incomplete statistics. In the past year, group buying websites burned nearly $400 million in these crazy ways.

However, he feared that the feast would soon come to a close. Originally planned to enter the capital market on the 14 day of the handshake net crashed at the last minute. This makes the whole industry feel cold - the market share of crazy burning money, and the capital market may feel worthless. Looking back, they are in the train with the speed of crazy.

Bidding for burning money

There are more than one bad news.

In November 16th, there was news of 24 coupons buying HuaiAn Railway Station. Overnight, 24 tickets for HuaiAn Railway Station were deserted, and hundreds of thousands of dollars had not yet been cleared. The 24 ticket senior public relations manager, Zhang Yonggang, said that this is not the escape of the rolls, but that the three or four line cities failed to make profits and shut down some sub stations under the pressure of "unbalance of payments".

24 coupons closed off the storm, let the group buying industry's financial crisis spread to the business, after the hard built group buying website image destroyed.

Cao Yizheng, general manager of Tianjin CGV Star International Road East Road shop, said: "I saw 24 tickets HuaiAn Railway Station news very angry, as a businessman, group buying is a good thing, but the result has caused a lot of losses, this is very painful. So when we choose the group buying website, the request for reconciliation period is very reasonable. If the account period is unreasonable, even if the conditions of the website are better, we will not cooperate.

Nowadays, it is also difficult to find a movie ticket of 9 yuan for all group buying websites.

Before, cheap movie tickets have always been a battleground for group buying. When a movie line comes out to buy a group, there are often more than a dozen group buying websites, and merchants put a sign on each group buying website so that everyone can sit down and start bidding.

At this time, glutinous rice and full seats will say that we have a full year advertisement, which can be attached to advertisements; handshake and 24 coupons will say that I have advertisements, too. And businesses feel that group buying can be done anywhere. If you can earn an advertisement, why not?

A senior member of the F group said that bidding is very normal for merchants. It is the same as advertising companies holding tenders for bidding, not only for large restaurants and cinemas, but also for many businesses. "Peers are enemies and friends. When competing for a bid, they are all red faced and privately friends. At that time, my colleagues often grabbed business with advertisements, then smiled at me, meaning "look at us," said Xiao Yuan.

Finally, every 9 yuan group buying movie ticket, group buying website should pay 9 yuan for this purpose. Paying money has become the most common way to make a horse race.

Xiao Yuan, a first-line sale of a group buying website. Xiao Yuan told reporters that this year, when talking about a cooperation with a steak house, he had to finalize the cooperation plan. Suddenly, one day he called to say he didn't want to buy a group purchase. After careful questioning several times, he realized that he was willing to pay the group to buy a group purchase.

"Just when I heard it, I thought it was unbelievable. Later on, more and more things like this happened to fight for a good businessman. Often, dozens of group buying websites bid together, and everyone goes all the way through the eight immortals."

But she soon discovered that paying money is still a small investment, underwriting and sending advertisements. Underwriting not only brings business pressure to group buying, but underwriting generally requires payment in advance. Once the goods are unsalable, cash flow from group buying websites will be occupied.

The way to spend money is to advertise for yourself.

A considerable number of group buying websites have chosen outdoor media such as buildings, subway, buses, etc. soon after Renren's listing, they launched a 10 million advertising campaign for Focus Media under its sticky rice network. Internet media has also been fired to the sky. A Sina marketing staff revealed that most of the website advertising costs were based on the "bottom price + link rebate" composition, and the rebate cost was sometimes as high as 200%. That is to say, if the user who consumed the past link consumes 100 yuan, the group purchase website will be returned to the portal for 200 yuan.

Since the Spring Festival last year, the agency for CCTV has begun receiving calls from these new customers. In the end, the handshake net launched tens of millions of advertising fees on CCTV, together with outdoor and Internet media. It is said that there are 30 million yuan brand promotion fees per month. According to the prospectus published by the handshake net, as of April this year, three rounds of financing have been completed, a total of 166 million US dollars, which will support less than half a year according to the monthly investment of 30 million.

Merchant turn

"In October, this kind of thing stopped abruptly." Tan Chenhui, senior manager of the marketing department of the US group, said that the wind direction has begun to change.

The core value of group buying network is to provide sales promotion platform for merchants. Its mode is simple entry threshold is low, for consumers, the user stickiness is not high. This has led to the fact that even if the price is exchanged for a temporary flow, once the low price advantage goes away, the user will lose quickly.

F group responsible person said, we need to consider the emphasis on advertising effect, after all, marketing cost is the biggest input of group buying website, so we must spend money in the most effective place.

With 24 tickets coming out of the book, the trust of the group buying website has fallen back to the starting point. Liu Zeyan, a promotion manager of Yue you pregnant baby network, said that compared to half a year ago, the effect of group buying has declined greatly from quantity and response, mainly due to the uneven group buying websites and the distrust of consumers and businesses.

Businesses with group buying needs to conduct self screening in the face of different advantages of group buying websites. Apart from the temptation to add advertisements and pay back, businesses consider more of the platform's promotional effect.

Liu Zeyan said that in order to compete, group buying websites have launched family ties, creating communication and contacts at ordinary times, and giving better locations, including external mail or advertising support. The focus of each group purchase network is different, and the emphasis of each choice is different. As for the temptation of advertising, Yue's consideration is mainly on sales, so it is not very cold for advertisements.

If the goods are electronic bills, they will focus on the widely publicizing group buying websites, such as Gao Peng and QQ group buying. They can take the initiative to push different information out or send them to the relatively prominent position of the mailbox. If it is a physical commodity or tail goods and promotional items, it will choose a website based on sales, and then choose the US group or the 58 group.

A restaurant owner who has often worked with group buying told reporters that the distrust of the market is more of a problem between merchants and customers. Merchants' choice of a group buying network is not a big problem.

Capital trap

The venture capital investors after this banquet are like a big head. The stock market was blocked and capital withdrawal was suspended in the air.

In addition to the handshake net, the US group, F regiment and full seat network have completed two kinds of financing, with a scale of US $50 million. Wo Wo Group also called its A round of financing 200 million US dollars, investors are Ding Hui, Tian you, Qing Ke and so on. According to statistics published on the Internet, the scale of the Chinese group buying industry has been close to 1 billion US dollars in the past year.

The handshake net prospectus shows that the largest shareholder of the handover network is Jinsha River venture capital, with a shareholding ratio of 38.9%, while its founder Wu Bo and his family share 22.6%, the second largest shareholder.

Capital has promoted the advertising war and horse racing enclosure. Their aim is to get more market share and tell a better story to the capital market.

In a scuffle, whoever comes first will be jealous. An insider close to the handshake told reporters that the night before the launch of the listing, the US Securities Regulatory Commission received the materials submitted by competitors, indicating that the financial problems of the handle are serious and do not qualify for listing.

This made Wu Bo feel sad. This is the third time he has started his own business. He has always believed that the market share should be the biggest as soon as possible, landing in the capital market, and then one by one to solve the problems arising from rapid development.

The attitude of the financing market to group buying has begun to change. At the beginning of the year, when a venture capitalist talked about group buying, he said, "this industry is too competitive, but there are still opportunities." But now, his attitude is: "the industry rules have been chaotic, and will not be considered in the short term."

Stingy may be the way to winter. When CEO Wang Xing of the US group moved into the new office building, only one ordinary station was chosen to sit down. He declared that the US group lost about 10000000 yuan a month and 40 million dollars on its account. Wang Huiwen, vice president of the US group network, said that the US group maintained a 20% growth rate every month and entered a stable development period. It is expected to make profits in the fourth quarter of next year, and there is no listing plan at present.