Group Buying Network Crazily Increasing &Nbsp; Eating Huge Amounts Of Precipitation Funds

Although the top ranking group buying websites are financing Later announced that hundreds of billions of dollars will be advertised this year, but the enthusiasm of the successors to enter the market is still high. The market expected "shuffle of group buying websites" has not yet appeared. Some third party statistics, only in March this year, the new domestic Group buying There are 732 websites. News shows that the current two or three line city group buying market competition has also been hot.

Behind the chaos, the shocking is not the gamble of capital, but the profit expectation of group buying website. In the words of an industry analyst, "these people are more sophisticated than monkeys, so they will throw money away, and there will surely be a way to get them back."

Crazily increasing

The Internet started from scratch. Entrepreneurship Passion on the group buying website is most vividly reflected. Statistics show that the first group buying website appeared in the domestic market at the beginning of last year. By the end of last year, the number of domestic group buying websites had reached nearly 1800, with an average of nearly 6 group buying websites per day. The frenzy of venture capital is better. Data show that the number of domestic top ranking group buying websites has exceeded 100 million US dollars.

Since the beginning of this year, the expected "shuffle" has not appeared before, and the frenzied degree of funds has been increasing. Data show that in March this year, an average of nearly 25 group buying websites were born, which is 4 times more than that of last year.

There is a rumor in the bookshops that basically 35 people can open up without supervision and zero cost group buying websites. From the end of last year to the beginning of this year, more than 10 journalists from the IT industry have already joined the market, and the group buying area is nothing more than catering, entertainment, leisure and daily necessities.

The information that the group buying website that has already been financing conveyed is even more crazy: the glutinous rice net only smashed 200 million yuan advertising fee only in CCTV and other satellite TV, the advertising bidding plan of the US group was 130 million yuan, the advertising budget of the group Bao network was 550 million yuan, and the advertising budget of the public comment network was close to 300 million yuan. The advertising budgets of these websites are close to 1 billion 200 million yuan, and outsiders should feel that they are suffering from flesh pain.

The two or three tier city is the main battleground.

Statistics from the third party organizations show that in March this year, the domestic group buying sites totaled 515 million yuan, an increase of 26.8% over last December. Although the total growth rate is good, the total sales can be spread to hundreds of group buying websites. Can sales support the current craziness? This is doubtful.

This growth has already included the achievements of the two or three line cities. In the total sales in March, the sales volume of first tier city group buying websites was basically around 30 million yuan, while the two or three line cities broke through 10 million yuan and 5 million yuan respectively. Obviously, the two or three line city has become the main battlefield. A few days ago, an entrepreneur told the Beijing Morning Post reporter that their market layout had already entered the provincial capital city.

The statistics of group buying websites are not worth boasting about. When other types of online shopping in China expand to two or three line cities, the total sales volume has exceeded several billion scale. Obviously, behind the crazy expansion, there are other supporting reasons.

The ratio is much lower than that of foreign countries.

It is reported that in Europe and the United States, the proportion of group buying websites is 30% to 50%, but in China it is even hard to imagine. At present, domestic group buying websites and businesses are mostly divided into 1 to 9 distribution ratios, or group buying sites impose additional fees on the prices given by merchants.

Because the profit of group buying website itself is relatively weak, coupled with fierce competition in business, many websites share nearly 30% to 50% of the business personnel, which leads to the low profit of the company and even the salary of the group buying website operator.

For businesses, brand value promotion and short time traffic increase can hardly be sustained. In fact, the over exploitation of group buying websites to merchants has been very obvious. Even in the two or three tier cities, some businesses have sprouted conflict. A head of a chain restaurant in Nanchang told reporters: "what is not group buying now? It doesn't make sense.

Merchants' resistance can be understood. After all, for group buying websites, they are only supporting roles. The group buying website sells customers and funds instead of businesses.

Eat huge sums of money

"From March 4, 2010 to March 4, 2011, the amount of user expired is 10 million yuan." In early March of this year, Wang Xing, the boss of the US group network, called "breaking the industry's hidden rules", returning the funds expired by members due to not having enough time to spend, which amounted to 10 million yuan.

Previously, the head of the Bao Bao network had publicly stated that about 40% of the group members were unable to consume in time because of busy work. Wang Xing pointed out that in the current group buying website industry, the proportion of expired funds is about 5% to 10% of turnover.

If the data released by these two websites are true, according to the rough estimate of the current market data, in the total turnover of the group buying website for nearly ten billion yuan, the funds for the group buying website will eventually be 500 million to 1 billion yuan.

In fact, the fund precipitation effect of group buying website is far more than that.

"Zero cost financing" without supervision

An industry source said that under the background of increasingly difficult financing, unregulated sources of funds have become more and more valuable. Like the "Qian Shun" and other shopping card issuers who had criticized the media, the group buying website has become a channel of "zero cost financing" with a slight change.

"As a result of the inter company agreement, the general group buying website and merchants will sign a long time account, usually 1 months to 45 days, which can bring long-term and stable cash flow to the group buying website without any supervision." Earlier, some people who joined the group said that the amount of cash flow in the group buying website could not be small by counting the turnover of hundreds of millions of dollars a year.

According to some previous industry figures: if 500 million yuan of stable stock capital is deposited in the bank and entrusted loan business, it can get annual interest rate of 6% to 8%. This part of the revenue plus the above 5% to 10% expired consumption funds, group buying website can get more than 10% of the net profit in one year. Perhaps this is the key to the problem.