Declining Sales Of People And Rising Complaints, Group Buying Website Faces "Shuffle"

A few days ago, a group released the Chinese group buying market report. In May, the group buying sales and purchase times in China declined for the first time compared with April. At the same time, the satisfaction of consumers to group buying websites also dropped significantly.

Industry experts say that the group buying website will undergo a shuffle process after more than a year's "great leap forward", and the rough development mode such as homogenization competition and price war is difficult to continue, and specialization and product quality control should be strengthened to win the living space.

Miss Zhu bought a photo buying coupon on a group buying website in April, with a discount of only more than 90 percent off points.

Miss Zhu did not expect to pick up the big bargain. Until the end of June, she failed to make an appointment. "When they make an appointment, they say that there are too many people. They are already booked up and can only be pushed and pushed again."

Depressed Miss Zhu asked the photo gallery to refund, but was told that they had been

With Miss Zhu's similar experience, group buying consumers are few, making appointments difficult, service shrinkage and quality discount.

More and more consumers are no longer "cold" to group buying.

"As long as there are low discount goods hanging out, many people will rush to the top, and many young people will accumulate several group buying vouchers," said a person in charge of Internet marketing in Zhujianglu Road. "But now consumers are becoming more rational, no longer attracted by low discount, and their service and product quality are more concerned by them."

Only burning money does not make money long and hard.

Recently, Renren, which listed overseas, released its first quarter earnings report. According to its publicly posted data on its packaged and listed group buying website, the net revenue was only $900 thousand, while its operating expenses amounted to $4 million 600 thousand.

It is understood that the profit level between domestic group buying websites and businesses is 1:9, while the US is 5:5. "Losing money and making money" is already a common problem faced by thousands of group buying websites in China.

Those in Zhujianglu Road say that competition between group buying websites is fierce, and websites are competing to introduce products with lower discount to attract consumers.

"Super low discount and free raffle are all aimed at attracting popularity and rushing traffic up to attract VC."

Zheng Chengde, a professor of e-commerce at Nanjing University, said: "in the short term, it may attract VC, but if there is no improvement in long-term performance, venture capital will also cut grain."

Specialization is the trend of future development

Speaking of the trend of the development of domestic group buying websites, Zheng Chengde believes that the group buying industry will gradually shuffle, and the "thousand regiment war" will not last long. Eventually, only a few large group buying networks will be left.

"Group buying website is only an intermediary between product suppliers and consumers, and its quality control of suppliers is particularly important."

Zheng Chengde told reporters that the current group buying website only solicitation for cooperative businesses, lack of necessary checks on the quality of their products, "the price discount space is always limited, to attract customers depends on the quality of the key."

In addition, the vicious competition of homogenization is also a disadvantage of the group buying industry.

Zheng Chengde believes that specialization is a trend in the development of the group buying industry in the future. We must rely on unique products to attract customers. "Create a professional team to do a certain field of products first, instead of catering, clothing, department stores everywhere, and wait until the quality control of a certain field is more mature, and then turn to comprehensive development."