End Of Group Buying Website Myth

　　 24 vouchers It is a group buying website launched by Beijing red micro-blog culture and Arts Co., Ltd. Its official website says that in more than 200 cities across the country, it provides the most valuable and latest City fashion consumption service 24 hours a day, involving restaurants, movie theaters, bars, hairdressing, beauty, KTV, SPA, night clubs, outdoor sports, tourism, sports events, concerts, fitness and other fields.

Fushun Railway Station staff Xiao Wang introduced, 24 tickets Fushun Railway Station opened in April, June on-line, though achievement Rising, but never realized. Profit and loss Balance. Base salary plus performance and subsidy, their average wage is around 2500 yuan.

"The company said that if it does not sign the Severance Agreement, it will not get the October salary, but we still have to fight against this unequal turnover agreement." Li Qian said.

Fushun Railway Station is only one of 24 vouchers. epitome 。

It is reported that the 24 ticket group buying network HuaiAn Railway Station was deserted overnight, and there were millions of merchants who had not accounted for hundreds of thousands of dollars. Many cooperative businesses come to ask for money. At present, the police have been involved in investigating the matter.

In fact, 24 tickets began to adjust staff structure from the end of September. At present, 6000 people have been laid off to 5000.

　 Group buying deep Mire

A group buying website, a mid level employee, said it was lucky that it had not dried up early in the group buying network, otherwise it could only be drunk if it was cut.

The joint venture funded by Tencent and Groupon, the largest group buying company in the United States, was deeply bogged down in the false lottery trust. In October, on the Internet of Gao Peng, a group purchase price of a Tissot watch was 690 yuan, which is lower than 1/4 of the market price of this Tissot watch. But then consumers complained about the poor quality of watches and suspected counterfeit goods.

In November 4th, Tissot China said that all the consumers sent from Tissot group were fake. In November 7th, Gao Peng announced that the supplier of Tianjin Jin three commerce and Trade Co., Ltd., using "false agent qualification information", admitted that the quality inspectors were negligent in observing the process of business inspection. Gao Peng network statement: in addition to a full refund, consumers who have not received the bill will receive 200 yuan in cash compensation; consumers who receive the watches and return will receive 400 yuan in cash compensation. {page_break}

As of September 30th, the net loss of Gao Peng net was US $46 million 450 thousand, and its revenue was only US $2 million 140 thousand during the same period. Previously, Gao Peng network had abolished 13 sub stations a month ago.

According to the data from a panning network, the volume of transactions in the Chinese group buying market decreased by 11% in October compared with that in September, and the total transaction volume between the commodity group and the life service group was unchanged from that in June.

Group buying navigation website group 800 released the "third quarter 2011 China group buying and consumption observation report" shows that there are 754 group buying websites can not be opened or has not been transferred to group buying, of which more than a month did not update the website of 9%, and 5% of the site to reprint, internal adjustment and other reasons closed group buying business.

According to the bulletin of census data of the national group buying website, as of the end of October 2011, 1483 group buying websites in the whole country had closed down and withdrew from the group buying market in fierce competition. Among them, the number of group purchase websites closed in October alone was as high as 456.

According to the monitoring data released by Amoy, as of the end of October, more than 20% (20.5%) of the group buying websites in China had not updated the goods in the past month. Over more than 5000 group buying websites in China had over 1000 group buying websites or stopped updating, or the website was revised or shut down.

What is more worrying is that VCs no longer favor group buying networks. The top five of the group buying website in China is ready to invest in the market, but the outlook is not optimistic at the moment.

In November 8th, the relevant documents submitted by the SEC to the US Securities and Exchange Commission (ADS) showed that the company would issue 5356990 US depositary shares (ADS), and 1ADS would be equivalent to 36 shares of common stock with a price range of 13 to $15. According to the highest price of 15 US dollars, the handshake net will raise up to 80 million US dollars. According to the previously announced plan of the handshake net, the company should register on NASDAQ in November 14th.

In November 10th, Tu Hongchuan, managing director of plateau capital venture capital, broke out on Sina micro-blog. According to the investment bankers of Wall Street, the IPO has been cancelled. In November 14th, the handshake net failed to list on schedule.

According to the financial report, the half year loss of the handle online has reached 391 million yuan, 6.8 times the net income of the same period. The industry believes that such a burning rate, the cash flow of the handshake net is difficult to support for a year. {page_break}

The independent group buying website has also dragged the parent company back.

In November 11th, Renren company (its Renren net and glutinous rice net) announced the third quarter earnings report in 2011, and its glutinous rice net lost a lot, which had a great impact on everyone's net profit.

The quarterly report of Renren disclosed that in the third quarter of 2011, the total revenue of glutinous rice net was $1 million 700 thousand, the cost of revenue was $141 thousand, and the operating expenses amounted to $8 million 100 thousand. The total two expenditures of the waxy network in the current quarter amounted to 8 million 241 thousand US dollars, and the operation loss of glutinous rice net was 6 million 541 thousand US dollars. The revenue of waxy rice network in the first quarter and the second quarter of 2011 was 900 thousand US dollars and 1 million 100 thousand US dollars respectively.

CEO Feng Xiaohai, who was interviewed by the China Youth Daily, said that the larger group buying websites wanted to continue to raise funds from private equity, but the number of people who could take over the plate had not been much, and once the financial situation appeared, "it would be very crazy to lay off employees".

　　 Group buying bubble crazy expansion too outrageous

Lawyer Zhao Zhanling has taken over several labor arbitration cases caused by layoffs, including Wo Wo Group, Bao Bao and Gao Peng.

Zhao Zhanling said he represented the labor arbitration case of Wo Wo Group Erdos branch staff. Wo Wo Group Erdos substation was established for three months, and there was no single list, but the wages of employees were there.

"Gao Peng net, group Bao net has hundreds of sub stations in the whole country, those three or four line cities, one quarter also has two or three lists."

Group buying websites have been "putting up flags" everywhere, with the aim of getting financing from investors under the pretext of hundreds of sub stations. Zhao Zhanling said that the crazily expansion of group buying websites was too far off, without taking into account the acceptability of the market.

"The Suzhou sub station of a group buying website is in the best office building in the city center, and works with a bank and an oil company building. If it asks how much gross profit margin it is, dare to rent such an expensive office space?" Feng Xiaohai said that some group buying websites spent investors' money in a big way, and buried the curse of blind expansion.

"The whole group buying industry is huge and has been rotten." Blog network founder, Internet Laboratory chairman Fang Xingdong said.

Group buying website is too eager for quick success and instant benefit, which surpasses the growth rule of the enterprise. Today's big Internet companies have gone through ten years and eight years of development to form a scale. Group buying website from zero to thousands of people, only experienced less than a year's efforts, management and finance are unable to bear such a "swelling".

"Group buying website has turned a marathon into a 100 meter sprint." Fang Xingdong said. {page_break}

It is only a matter of time before the bubble bursts. Group buying is brutal growth, and venture capital is indispensable. "These venture capitalists are rushing out, like the shareholders, catching up and killing. They are not the ones who voted, but who are more willing to invest." Fang Xingdong said, "group buying can not become the mainstream consumption mode and normal business mode." Fang Xingdong said that it is a specific commodity that is suitable for group buying. "Group buying website will slowly reduce, inflection point has appeared, 2012 is group buying shrink year."

Feng Po, an analyst at CIC group, said that after June this year, professional investment institutions no longer invested in group buying except strategic investors.

The group buying website that lacks funds will have to cut costs to survive. The two biggest cost of group buying websites is advertising and human resources. Feng Po said that compared with the previous months, the advertisements for group buying websites can be reduced greatly.

Group buying is to help businesses expand their businesses and help businesses to make money in marketing process. "But China's group buying industry is disorderly competition, each business contacts with different group buying websites, group buying websites are free or even paid to businesses for promotion, so that many businesses are out of balance." Feng Xiaohai said, there are costs to help businesses to promote products and services, but fierce competition in group buying has led to a vicious circle of businessmen's "no spending" mentality, which has finally destroyed the rules of the whole market.

Feng Xiaohai believes that once a group purchase website is laid off on a large scale, arrears of merchant loans will result in strict supervision by the state regulatory authorities, so that the entire industry will be affected by the increase in operating costs.

　 Where is the group buying road?

According to the data from a panning network, the proportion of consumer goods to physical group buying increased continuously from June to October this year, and exceeded 50% of the total market consumption for the first time in October this year, reaching 52.75%. However, the market share of catering services, tourist tickets, entertainment and leisure service group buying projects continued to decline.

Wang Tingting, an analyst at Ai Rui network, said that in the e-commerce industry, group buying is a high cost mode of operation, with a lot of money spent on manpower and advertising, but little income. {page_break}

The rise of physical group buying is not a good omen. Wang Tingting said that the direct competitors of physical group buying are Jingdong mall, Dangdang and other B2C enterprises. These enterprises are large and well funded, and have entered the supply chain upstream and distribution system. Group buying does not involve warehousing, logistics and distribution. It is a "light" mode compared with the traditional e-commerce mode. Only by catering, hairdressing and other local service industries can we get out of group buying characteristics.

　　 Group buying website rational return to consumer driven

Wang Tingting believes that the contribution of China group buying website is to cultivate the market and users, the group buying market has become mature, and consumers have increasingly recognized this consumption mode. Now is the time when group buying websites return rationally, driven by investment and driven by consumption.

Feng Xiaohai said that according to local conditions, cities with developed local services can develop group buying even if the cities are small. Some economically developed cities and cities are not necessarily suitable for group buying. In general, group buying is still a good mode.

He believes that group buying should deepen cooperation with merchants in marketing, provide solutions to businesses, stabilize turnover, instead of running horses in various cities. By reducing wages, optimizing services, reducing costs and increasing profits, the loss of full net is decreasing. "We expect to break even in January 2012." Feng Xiaohai said.

Although the network is also actively looking for the next round of venture capital, Feng Xiaohai stressed, "do not rely on venture capital transfusion, and enterprises will have hope of survival if they make profits."