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    Inventory Group Buying Website Ups And Downs In 5 Years

    2015/1/19 12:43:00 25

    Group BuyingWebsiteWo Wo Mall

    New year's day has just passed.

    Wo Wo mall

    The IPO document was submitted to the securities and Exchange Commission of the United States for the first part of its listing in the US in 2015.

    Today, many people are very strange about the name of "Wo Wo", which makes people feel that the Chinese group buying market has changed over the past 5 years.

    In just 5 years, after a series of drastic changes such as the 1000 regiment war, barbaric growth, capital bubble and survival of the fittest, China's group buying market is more rational.

    In the past 5 years, ups and downs were like a dream. The Chinese group buying website began to change its life, extending its tentacles from the field of group buying to a wider range of local life service consumption.

    The future group buying website will be farther and farther away from its original appearance.

    Inventory

      

    Group buying

    5 years of ups and downs

    Every year, China's group buying market is changing.

    From the beginning of 2010, the first batch of group buying websites in China was set up to the end of 2010.

    In 2011, players used capital to market, and the industry problems of rapid expansion and concealment were gradually exposed.

    In 2012, the United States and the public comment on capital and grain conservation, advocating intensive cultivation.

    In 2013, the "opening group" has gradually normalized, focusing on services and mobile market trends to seize the top two, further consolidating the "first camp" status.

    In 2014, with the favor of capital and the investment of Internet giants, the group buying website gradually relied on money struggle for its independent development.

    In 2015, group buying website has become a trend of multi line operation in O2O field.

    Total turnover was 2 billion yuan in 2010.

    The thousand regiment war opened.

    Mr Li, who was once the head of a large group buying website market and has been on the market for nearly 5 years, is still alive to the horror of the 1000 regiment war.

    The Groupon model of the US buys a fascinating atmosphere on the other side of the ocean. China's Internet entrepreneurs are like sharks who smell blood smell and swarm into the group buying market.

    In January 2010, the full line online was set up on March, the 4 day the US delegation was established, the Wo Wo Group was founded in March 15th, the handshake net was established in March 18th, the glutinous rice network was established in June, and the public comment that was established in April 2003 in early 1990s was also pferred into the group buying market in the year from the commenting media.

    Mr. Li recalled that in the early days of China's group buying market, physical commodities accounted for a large proportion in the regiment list, because the local life services sector needed a large number of ground promotion personnel.

    The Chinese group buying website, which has just been born, does not have a large number of offline teams, but is also subject to geographical restrictions. The threshold for reproduction is not high. As long as we get some special products and talk about some businesses, a college student can build a group buying website by downloading a group purchase website template.

    Group buying website, because of the pre payment and verification code closed loop verification system, has rapidly hit the issue of electronic coupons, but has not formed a closed booking website.

    In the same year, the restaurant and discount website website began to get involved in group buying business.

    According to the statistics of relevant organizations, by the end of 2010, the number of domestic group buying websites exceeded 1700, and the "1000 regiment war" was kicked off.

    The total turnover of group buying in 2010 was 2 billion yuan.

    Total turnover was 11 billion yuan in 2011.

    Crazy mergers and high salaries

    "Everywhere."

    Group buying

    Advertisements.

    Mr. Li said that in the first half of 2011, there were more than 5000 group buying websites, and the group buying was mainly based on advertising, but in fact, they were losing money.

    He laughs: "the real money making this year is Focus Media and group buying navigation website."

    In fact, unlike the US group buying website Groupon, which makes up 40% of the gross profit business, the Chinese group buys only 5% of the pactions from the merchants, and the low margin business.

    In addition to advertising, crazy mergers and high salaries have created a great leap forward in the group buying industry.

    Take Wo Wo Group as an example. In the six months of 2011, dozens of local group buying websites such as Shenyang 19 regiment, Wuxi group shrimp, Changsha group customer and Xiamen flash group were continuously purchased.

    In July 2011, Wo Wo Group CEO Xu Maodong even announced in a high-profile manner on micro-blog that the more than 100 mainstay of the original US group network joined Wo Wo Group.

    "Group buying websites dig each other, and job hopping is doubled. In a three or four line city, the wages of the local pushing personnel can reach seven thousand or eight thousand, which is obviously too high."

    Mr. Li revealed.

    In November 4, 2011, Groupon, the founder of group buying, landed on NASDAQ. It has been less than two years since the establishment of the handover network. It also submitted a IPO document in a high-profile, and plans to register in the US in November.

    Unexpectedly, the US Securities and Exchange Commission ordered the handshake net to clarify some accounting problems, and the listing plan for the handover network had to be shelved temporarily.

    In the first quarter of 2011, the total income of the handshake net was 22 million 610 thousand yuan, a loss of 219 million yuan, and by June 30th, the loss expanded to 391 million yuan.

    This unsightly performance report has lifted the embarrassment of the group buying industry, but the market share is more than that of Wo Wo Group. At this point, the IPO announced its opening.

    Total turnover was 21 billion 390 million yuan in 2012.

    Group buying problem concentrated outbreak

    In 2012, because of Groupon's stock price cut and poor performance at the end of 2011, it was accused of the Ponzi scheme, and the whole group buying industry was shrouded in shadow.

    In the first half of 2012, the problem of group buying industry focused on the outbreak. This year, CCTV's "3. 15" action column exposes the situation of the group buying website, such as the handover network, the existence of false qualifications, the number of empty participants, and the businesses buying their own group buying products.

    Mr. Li said that when the industry was developing rapidly, the group buying website could be a small agent, because the group buying website had previously worked hard to win the share of the merchants under the subsidy line.

    "To what extent does it exaggerate? A post-90s ground promotion worker who has just entered the group buying industry can quickly accumulate wealth and buy a suite in Beijing a year."

    But in 2012, the whole group buying industry was completely incapable of money. Many companies that had once been very aggressive had to shrink their fronts, reduce staff and carry out internal anti-corruption. In the middle of the year, group buying websites had been reduced to 3000.

    This year, 24 coupons broke out the news of arrears of wages and business settlement, a large number of local stations were forced to close down or exist in name only; group Bao network fell into rumors of bankruptcy; F group and Gao Peng network announced formal merger; in June, the handover network IPO announced abortion; in August, the founder of Wu Bo's handshake network resigned from the CEO post; Wo Wo Group IPO shelved, resolutely renamed "Wo Wo mall", layout local life service business.

    However, the US group network and the public comment network have been on the rise in this year.

    According to the report of group 800 at the end of the year, the volume of us group turnover exceeded 5 billion yuan in 2012, while the public comment network ranked second in the scale of over 3 billion yuan.

    At the same time, the local life service group purchase has accounted for about 90% of the paction volume, far exceeding the commodity group purchase.

    Total turnover was 35 billion 880 million yuan in 2013.

    Pattern adjustment and intensive cultivation

    In 2013, the US group and the public comment network ranked the top two, and third of them were hand in hand, Wo Wo Group and glutinous rice net.

    In early 2013, the top five group buying sites accounted for 90% of the total group purchase website.

    At the end of the year, there were only 213 group buying websites that still operate normally.

    "Group buying industry in 2013 has become rational."

    Mr. Li said that at this time people realized the significance of intensive farming.

    "Later, the US group and the public comment network, which get the best out of the picture, get users through the online conversion and word of mouth communication, and study the consumption habits of various cities, the sales of merchants and customers, and improve their operational efficiency through technical means."

    Mr. Li found, "when the platform for merchants to reduce or stop the subsidy, the stronger the ability to change the natural order, the platform is more attractive to the merchants."

    As early as 2011, the group spent a lot of effort to develop a set of IT systems, combing a complete set of business processes from business communication, auditing, editing, online to later consumers and business services, and the operation efficiency of the US regiment increased by nearly 3 times.

    At this time, the group buying market itself has undergone new changes. The first notable change is the normalization of group buying and the optimization of services.

    Group buying has become a normal practice of clearing up, promoting sales and finding new customers from the unusual "kill" method of advertising, which has become the norm for local life services.

    Another change is mobile.

    Group 800 data show that by the end of the year, mobile phone group buying accounts for more than 50% of the total turnover, while the US group and the public comment network first seized the initiative of mobile technology.

    At the end of this year, Suning denounced tens of millions of dollars to buy the full net, and Baidu began to buy glutinous rice net.

    At the same time, the US mission announced its annual sales revenue of 16 billion yuan in 2013, and realized its profit.

    Total turnover was 70 billion yuan in 2014.

    Fighting for money is coming.

    In 2014, Mr. Li judged that the group buying industry had become a game of "leftover", and the group buying website opened a new round of pformation. The process was difficult and difficult to predict.

    After repeated hesitation, he left the group buying business at the end of the year.

    "It's time to fight for money."

    Mr. Li plans to start a new business.

    The group buying industry this year has no shortage of attention.

    In January 24th, after the holding of glutinous rice net in August 2013, Baidu announced that it would buy all the shares of glutinous rice net held by everyone.

    In February 19th, the public comment announced that Tencent would be a shareholder. The amount of Tencent's stake is about 400 million dollars, accounting for 20% of the shares. The two sides will cooperate in depth in terms of product form and user entry.

    In March, Baidu Nuomi completed the "3. 7" girls' Day promotion, blocking Ali's "3. 8" mobile Taobao life festival.

    The United States mission also launched a big promotion campaign worth 400 million yuan from the end of March 4th to the end of the month. Although the US group had introduced Ali into the stock market in 2011, the US group has repeatedly stressed that the proportion of the shares occupied by Ali is very low.

    In March 31st, the tick group, which once ranked third in the market, officially closed its group buying business, saying it would turn to the new business model in the future.

    In April, the rice unification network collapsed and was involved in a wave of arrears of wages.

    In October 22nd, the handshake net stated clearly that the three cell group would become the controlling shareholder of the handle network.

    The industry sighs, under the current situation, selling or pulling the net is the best way out.

    At the end of the year, the US group and the public commented on the news.

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