Amoy Collection Social Bankruptcy Business Simulation Game When To Rest?

With the development of Internet technology and the continuous improvement of the economic strength, the traditional electricity supplier's traffic dividends are exhausted. The social business operators use the social network to achieve low-cost drainage, and rely on the users to infiltrate the shopping information into people's lives, so that users can spread the shopping information and stimulate users' shopping behavior.

According to the relevant data, the scale of the social e-commerce industry is growing rapidly. In 2018, the peak period of its development is booming. Many social networking providers, such as mogujie.com and other social networking providers, are pushing the social business to the outlet.

But in 2019, its growth slowed down, the competition in the social e-commerce industry was fierce, the business operation mode was similar, and the last month of taoji set broke down in 2019, which sounded the alarm for the social networking industry.

　　 Social networking Road

In December 9, 2019, Amoy collection released through official micro-blog, "sorry to our partners, this may be our last micro-blog". The announcement said that we had tried our best to do nothing. Due to the failure of the funds to arrive on schedule, we had to declare that the merger and reorganization of the Amoy collection company failed. Then the company will seek bankruptcy liquidation or bankruptcy reorganization. It was only 16 months from August 2018 when the online collection of Amoy collection was launched.

Amoy set a collection on the line will rely on low prices to fight down the market, with a lot of cheaper models of competition for the masses, hoping to occupy the demographic dividend of the three or four line cities as soon as possible. Taoji Ji's early sales volume is mainly based on the volume of sales, the compression of commodity profits, the low price of goods, and the imitation of many subsidies, haggle, flocking and fission marketing, which has made rapid growth in the early stage. According to public information, the collection of the collection line has only 130 million registered users and 40 million active users in 9 months.

Amoy collection has been welcomed by capital after its success. In October 2018, only two months after its establishment, Tao Ji Ji won 42 million yuan A round of financing of investment institutions such as tiger Global Fund and DST, and its valuation reached 242 million dollars.

In June of this year, Amoy Ji announced the launch of the B round of financing, to raise $200 million, and to invest $800 million in post investment. However, because the mode of burning money to pull customers is no longer optimistic, taoji Ji has to spend more money to win more users and even divert some of its merchant's money for marketing. In the end, due to the lack of payments, the debt restructuring agreement, which was adopted in the 90s reform of state-owned enterprises in October this year, has been completed after two months.

The phenomenon of rapid growth in the early stage is burning money for users, relying on various "profit making activities" to get customers, obtaining high cost and serious losses. Moreover, under the volume sales mode, the quality of goods can not be guaranteed, and it can bring more negative effects. The mode of this kind of money burning enclosure, even if it obtains a large amount of users in the short term, is not a reasonable operation, and it can only be a short-lived false prosperity.

Jianghu Lao Liu team believes that Tao Ji Ji only burns money. The operation mode has no unique advantages in the era of large numbers of social networking providers. It is not a permanent solution to get capital by pulling users alone. We should think about how to improve user retention and create innovative profit models.

　　 How long will it take to imitate social games?

From the peak of the development of social networking business in 2018 to the gradual weakening of 2019, the coincidence of the marketing mode of the social e-commerce industry has also led to more and more bottlenecks in the development of social e-commerce enterprises. Social networking companies are collectively trapped in the crisis of operation and growth, which not only causes the problems of their respective companies, but also changes the overall competition pattern and business background.

In January of this year, the social networking platform of the listed companies in Kunlun on the world wide web has been silent for a few months, but there has been no sound in the past few months. The development of social networking business is also gathering trouble. The latest three quarter earnings report in 2019 shows that the total GMV value of the company is 9 billion 200 million yuan, up 69.8% from the same period last year, with a net loss of 51 million 300 thousand yuan, narrowing 4.3% compared with the same period last year. However, the total revenue in the quarter was 10.1%, down 2 billion 773 million 100 thousand yuan.

Tao Ji Ji learned and spelled a lot of ideas, imitated many spells and started, but there was no unique ability to innovate. It was difficult to imitate other giants by imitation alone. In addition to Amoy collection, many social networking platforms are imitating subsidies, grouping strategies and so on to get users, focusing on the sinking market, such as Ali launched the "Taobao Special Edition APP", Jingdong's "Jingdong purchase", Suning's "happy to buy" instead of "Suning to buy", NetEase strict selection in APP launched the "strict selection together" plate.

Jianghu Lao Liu's team believes that the mode of many platforms such as teamwork in the social e-commerce market is not enough to attract users. It is difficult to have new breakthroughs in the mode of imitation alone, and it is necessary to change the market strategy.

Tao Ji Ji's rapid growth to the last stage of bankruptcy, let the social business people introspection, although all because of a successful imitation, but to achieve the leading position, or need to innovate. In addition, in order to grow in a frenzy of burning money, the operation mode of retained users is also beginning to cause public reflection.