Group Buying Website Enters Burning Money Period: Executive Power Is High, VC Is Gambling.

With the power of capital, Groupon They are busy in various cities in China. For many large scale group buying websites, the new year means a new turning point for development, and for some smaller group buying websites, it will be a sad "year-end".

With consumers' discount on group buying and good quality and low price, New e-business mode The whole group buying industry has also fallen into a nearly crazy state. Almost every day, there are new group buying websites. At the same time, there are group buying websites falling down every day.

Wu Bo's handshake net is the largest number of venture capitalists invested in many Chinese group buying networks this year. In his view, the current group buying site's profit model mainly depends on the service charge, and there are still many risks. The proportion is generally 10% of the product sold. "Profitability is not very easy, the service industry is very irregular, and some small businesses do not respect contracts. You can't get money from selling products. " Too low a technical threshold is seen as another risk.

"This is the first time for the group buying website, although other business models are all about holiday economy, but in past experience, the click rate has dropped on holidays, and the winter in the north is colder, which is a traditional off-season." Wu Bo admitted that this is a ridge for group buying websites.

In order to attract more customers, price war It's the only way. The handshake net has been working with the Shandong Tourism Bureau in recent days. On the handle net, the price of group buying tickets for a famous scenic spot in Shandong has been as low as 10 yuan. At the end of the year, the competitor network of the handshake network launched its cooperation with more websites.

But the price war is not valued by many business experts. "Low price is the most stupid business competition." Jack Traut, a well-known marketing expert in the United States, thinks so.

"The chaos of the so-called" thousand regiment war "appears in the group buying network. It will last for some time. Only by constantly eliminating and renewing the chaos will we finally establish a good order. Mei Tao, vice president of network data company, believes that A PE industry said that group buying network is entering a period of burning money, although the threshold is low, but the operation, execution, resource requirements are very high, VC is also in the "gambling".