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    Group Buying Websites Turn To Physical &Nbsp, And Pformation Prospects Are Not Optimistic.

    2012/2/27 11:53:00 18

    Group Buying Website Group Buying Physical Group Purchase

    Some experts predict that in 2012, the first camp in China

    Groupon

    More than half will be eliminated.

    Faced with this situation, many small and medium-sized group buying websites began to abandon local services and turn to physical group buying.


    The Beijing city commerce and Industry Bureau met with the head of the Bao Bao network who was deeply involved in the financial crisis the day before yesterday, and gave a hint to its behavior of neglecting consumer complaints.

    Since then, the group has removed most of the group purchase projects that have already been unable to complete consumption in cooperative businesses, but can still be purchased before, retaining dozens of objects.


    Group buying websites have abandoned local services to group buying.


    The crisis of group Bao network is not a case, but the coldness of capital market has made the group buying industry vigorous.

    And the company is under the pressure of the complaints under the pressure of the house and stay, but also with the many group buying websites are now in the process of pformation coincides with - that is to give up local services, to the kind of kind of group purchase.

    Hu Chen, a co-founder of the independent group buying navigation website group, told reporters that their statistics show that in the past month, the direction of group buying website operation has changed very obviously.


    Hu Chen: before we had a docking website, 99 to 100 websites were indeed put forward before the Spring Festival, from group buying of the original local service providers to group purchase of express delivery in kind.

    From the beginning of last year's large-scale verification in 8 and September, we found that only 22% of the group buying stations were purely physical group buying websites, but by the end of January this year, the proportion has risen to nearly half of the websites, and the proportion of physical group buying has risen sharply.


    The so-called local service is

    Groupon

    Services that are offered in collaboration with ground businesses, such as group buying, a movie, a big meal, or a massage.

    And physical group buying, as the name suggests, means buying things directly through group buying.

    However, according to the data, the total sales volume of domestic group purchase market exceeded 11 billion yuan last year, and the total sales of local service products amounted to 7 billion 830 million yuan, accounting for 71%.

    It can be seen that local service is still the main channel to earn money for group buying websites.

    Is the group buying website willing to give up this big fat meat? Hu Chen said that such a choice is really a helpless move.


    Hu Chen: after last year's excessive competition, the large group buying website will take some more stimulating measures for the dominant brand merchants to take reimbursement or even product commitment, so small group buying stations will be more and more difficult to win these local service businesses.

    Another reason is that the profit margin of local businesses is less than 10%, and you may have earned a lot of money if you have worked so hard to negotiate.

    But if there are more physical objects, the cost of personnel can be greatly controlled and reduced.


    Group buying websites are not optimistic about the pformation prospects of physical objects.


    To a large extent, such a move is the frustration of group buying websites. Can such a pformation help them survive the crisis and get reborn?


    For the effect of group buying website pformation, Lv Benfu, vice president of the Chinese Academy of Sciences Graduate School of management, is not optimistic.


    Lv Benfu: because the gross profit cost of physical goods is not high, so group buying can bring little space to consumers, because its hard cost is there.


    In addition to the limited profit space, the independent group buying navigation website group 800 co founder Hu Chen analysis thinks that the traditional B2C website has its own warehousing and logistics system, but after the pformation of group buying website, there is such a vacuum area, it is difficult to guarantee the quality of service.


    Hu Chen: one is that logistics express service can sometimes be controlled. Another problem is that because these products are not checked in warehouses, they often appear in the wrong version of goods. It is precisely because they do not have the logistics and warehousing line. Therefore, many group buying stations will encounter new challenges after being pformed into physical group buying.


    Lv Benfu: deep tillage subdivision industry is a better way for small and medium-sized group buying websites.


    Nevertheless, in order to survive in the short term, small and medium-sized group buying websites crowded into B2C, which has been dominated by giants such as Taobao and Jingdong.

    Is this the only way out for them? According to Hu Chen, in fact, there are many small and medium-sized group buying websites trying to survive in other ways.


    Hu Chen: the way they live is to make use of the vertical classification method, and no longer crave food, food, entertainment and life services to be packaged.

    It is possible to pick out a very small category, so that when it puts its professional energy in a narrow industry, it may get some protection and resource barriers.

    Large group buying station is precisely because its traffic is huge, it is difficult to meticulous service to a specific category.


    Lv Benfu also believes that deep tillage subdivision industry is medium and small.

    Groupon

    A better way out, after experiencing the warmth and loss of the "thousand regiment war" in 2011, he believes that the territory of the whole industry will be clearer in 2012.


    Lv Benfu: I think there will be no more than 5 domestic comprehensive group buying websites. Vertical subgroup buying websites are the most common in every small industry. If you can't reach the top, I suggest that we stop the other 3.

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