The continuous emergence of group-buying websites in recent years has triggered people's concern and discussion about online group-buying. Based on e-commerce network group-buying site, by more and more consumers, at the same time, also for the enterprise's network marketing activities has brought new opportunities. As a result, the construction and future of group-buying websites have become the focus of many businesses. This paper analyzes the current situation and characteristics of the group-buying network, the problems of group-buying website: the model of homogenization, lack of integrity, vicious competition between websites and other issues to optimize the measures, and the future development trend of group-buying website to do a brief analysis. We hope that group-buying websites will go farther and develop healthily in the era of e-commerce.
Keywords: group purchase website; status quo; strategy
Abstract
In recent years. Emerging group purchase website has sparked concern and Discussion on network group purchase. Based on e-commerce network group purchase website, more and more consumers and pursued, at the same time, it also brings new opportunities for Therefore, the construction of the website and the future has become the focus of attention of many businesses. Therefore, the construction of the website and the future has become the focus of attention of many businesses. The paper analyses the present situation and characteristics, the group buys a website to buy network problems: the malignant competition between single mode problems, the lack of network marketing activities of enterprises. The paper analyses the present situation and characteristics, the group buys a website to buy network problems: the malignant competition between single mode problems, the lack of integrity, website optimization measures are put forward, and make a brief analysis of the future development of the website. Hope group buys a net to go further in the era of electronic commerce, the healthy development of.
Key Words: Group-buying websites ,Current situation ,Strategy
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Table of Contents
1Introduction
In recent years, the continuous emergence of group-buying websites has triggered people's attention to and discussion of group-buying on the Internet. Based on e-commerce, online group-buying websites are sought after by more and more consumers, and at the same time, they also bring new opportunities for enterprises' online marketing activities. This paper analyzes the status quo and characteristics of group-buying websites, as well as group-buying websites in general: the model of homogenization, the lack of integrity, the vicious competition between the site and other issues such as optimization measures, and the group-buying website of the future development trend to do a brief analysis. We hope that the group-buying site in the era of e-commerce to go farther, healthy development.
2 The current situation of group-buying websites in China
Nowadays, with the soaring of prices, people's consumption consciousness and behavior are becoming more and more rational. Good and cheap goods has been the ultimate goal of consumers. This is the purpose of the development of group-buying sites. And now the once red-hot group-buying is ebbing, from two years ago, the thousands of group war, now reduced to Internet giants of their own land, group-buying big brothers, "big money" phenomenon is no longer the case, which also shows the development of this industry in general suffered a predicament, sustained burning of money is difficult to continue, to find a new path of development is imminent. Group-buying site only to change the existing profit model, and continue to specialize, in order to bring considerable benefits for consumers, enterprises and the site itself and long-term development.
2.1 Concepts and Categories of Group Buying
Group buying is a web-based business model in which a sufficient number of people gather through a group-buying website to purchase or use third-party company's goods, coupons, or services at a discounted price. Sellers maximize their sales at a small profit, buyers get discounts and save money, and the company that operates the group-buying website receives commissions from the sellers. The concept has appeared in forums, but in recent years, group buying has ceased to be an independent activity in some forums and among some netizens, and has become a series of specialized group-buying sites.
In this era of the Internet, online shopping has become the most sought-after way of shopping for young people, although the income is not high, but the pursuit of high quality of life has become a significant feature of young people. And now many websites are to seize this point, to "save money is the hard reason" as the call to attract more young people to join the army of group buying.
2.2 in the current group-buying website development status
Data show that in 2021, China's group-buying market overall transaction size of 23.7 billion yuan, in 2022 the transaction size of 34.885 billion yuan, an increase of 93% compared with the year 2021, in 2023, the national group-buying market transaction amounted to a cumulative total of 53.289 billion yuan, according to the group of 800 statistics show that, by March 2023, China's group-buying market transaction amounted to 53.289 billion yuan, according to the group of 800 statistics show that the group-buying market transaction value of 5.289 billion yuan. China's group-buying market turnover of 4.83 billion yuan in March 2023, 2.426 million more than the historical high (December 2022, 71.224 million); 851,000 issues of the group single on sale, 36,000 more than the historical high (January 2019 status quo 815,000 issues). During the same period, the more popular websites in the country counted their sales, among which, Meituan.com, Dianping.com and Baidu Nuomi, had the highest turnover. In the country can be regarded as a group-buying network in the group-buying site with a high degree of recognition. The huge group-buying turnover for the group-buying industry to hand over a score quite beautiful "answer sheet".
But behind the welcome achievements there are also the heartache of their respective enterprises. on February 25, 2019, Baidu and Renren signed an agreement, the agreement said Baidu will acquire all the shares of Nuomi, and become a wholly-owned major shareholder of Nuomi. Alibaba's shareholding is between 10% and 15%. According to the e-commerce research center statistics, as of the end of 2021, China **** 870 group-buying site, the cumulative closure of 5376, closure rate of 86%, is expected to the future group-buying site scale will be a large number of compression, due to group-buying site itself in the operation of the shortcomings of the group-buying site, some analysts pointed out that the group-buying site is slowly withdrawing from the market.
2.3 The main consumer groups of group-buying websites
As an emerging online shopping mode, a new consumer boom has begun since its entry into China, and the group-buying developed on the basis of the Internet and e-commerce has made its consumer groups - young people and middle-aged people - more willing to accept this new consumption mode. Accept this new mode of consumption. The main force of the network group purchase is the age of 24 to 38 years of age of the young group, in Beijing, Shanghai, Guangzhou, Shenzhen, Xi'an, Xiamen and other economically more developed cities is very common, of which 20-29-year-old consumers accounted for 49.52%; 30-39-year-old netizens accounted for 31.92%; netizens under 19 years of age accounted for 8.56%. 8.56%. It seems that the post 80s are more concerned about group purchase. There are many reasons, among which economic purchasing power is the main reason, because in the group-buying website according to the number of group-buying and the number of products ordered, consumers can generally get from 6% to 45% discounts, followed by the degree of use of the network and the degree of attention to the new things, and consumer attitudes and so on the influence of many factors. Among the netizens who pay attention to group purchase, the number of female netizens is slightly higher than that of male netizens, because women are more enthusiastic about shopping.
2.4 The main features of group-buying websites
2.4.1 Group-buying websites have the price advantage
The core advantage of group-buying websites is that the price of goods is more favorable. The nature of group-buying is equivalent to wholesale, and the price of group-buying is equivalent to the wholesale price. Consumers through the group-buying site this platform, you can take the initiative to buy the sparse collection of bulk buying and selling, according to the principle of large quantities at a good price, so that consumers dominate the market, increase the bargaining chips with the merchants, so consumers can buy the same quality of products through the group-buying site this platform, but pay a lower price and enjoy a better quality of service. And online shopping is not limited by time and space, more convenient and faster. So this kind of spend less money, get the same service and product of this way of consumption, more by rational consumers, because this advantage is more attractive than the ordinary online shopping.
2.4.2 Group-buying site variety
The group-buying industry's fire to a certain extent to stimulate the domestic Internet industry have to participate in the current industry group-buying site types are:
1, B2C self-built group-buying platform: such as the Taobao Spotlight, Jingdong Mall group-buying, etc.;
2, classifieds information sites open group-buying channel: such as 58 group-buying channel. channel: such as 58 group buy, mass comment group, love to help the group, etc.;
3, the portal's self-built group-buying platform: such as Netease head of the net, Sina group, Sohu love home group, QQ group, etc.;
4, social networking sites to launch the group-buying services: such as happy happy group buy, Renren nuomi network;
5, independent group-buying sites: such as LaShou network, the United States group network, 24 Coupon, etc.;
6, group-buying navigation sites: such as the group 800, the group spell network, 360 group-buying navigation;
7, the industry website self-built group-buying site: such as Huicong network under the Huicong group.
2.4.3 group-buying site competition
The group-buying site since March 4, 2020, the establishment of the United States began, experienced a capital darling, thousands of group wars, malicious competition, IPO halberd, the capital broke food, layoffs off chopping, intensive cultivation and fine-tuning, mobile spring and a series of development, to the current large number of sites of homogeneous competition intensified along with the arrival. Group-buying site of the technical threshold and capital threshold is relatively low, from 2020 to 2021 this year, the birth of the number of group-buying site surged to more than 5,000, an average of every day the birth of the group-buying site 6 to 7, homogenization of the competition has led to the "war of a thousand groups". However, group-buying site competition behind the fierce situation, is the embarrassing profit predicament, group-buying enterprises, including group-buying giants want to survive the need for huge sums of money to complete the pre-preparation, so in the short term, want to rely on the characteristics of this low-priced to attract consumers is difficult to high-cost inputs can also be profitable, in order to win more market share, a lot of websites have to ask for endorsements, advertisements, with ultra-low prices to attract users, to reduce the rebate, but most of the group buying sites, the number of group buying sites has increased to more than 5,000 every day, the average birth of 6 to 7, homogeneous competition has also led to "thousands of wars". Reduce the rebate, but most of the site did not get the expected results, for example, in April 2021, "beauty group network" closed the Maanshan and other four cities of the substation; "happy network" also contraction of third and fourth-tier cities of the front; in August, Tencent and Groupon cooperation "high punk network" has been exploded layoffs of 400 people, withdrawn from the 13 sites, the implementation of the so-called strategic austerity. Group-buying sites often compete with each other, and when one company launches an activity, the other will soon launch an activity with similar content but at a cheaper price. Even some of the merchants involved in group-buying activities will find some people to buy their own products on the group-buying network, in order to raise the popularity, so as to attract more consumers to buy. This behavior undoubtedly has a lot of negative impact on the market order. At the same time, for venture capital companies, the development of group-buying enterprise status quo is not satisfactory, which will make its investment in group-buying enterprises more cautious, which undoubtedly makes the investment channel is more small, then can get the financing of the enterprise will accelerate the reduction of some small group-buying site inevitably appeared to be mergers and acquisitions or withdrawal from the fate of the market. Now it seems that perhaps now thriving group-buying sites, in the end only a few can survive.
3 group-buying site problems
From the emergence of the group-buying site of people's enthusiasm, to today's Internet giants close to the Internet giants, and gradually reduced to the Internet giants of their own land, so that we can see group-buying site in the process of the development of the existing problems.
3.1 single mode, no attraction
Considering several domestic group-buying sites such as Meituan, group 800, LaShou network of these sites list of commodities, the Meituan, for example, the type of merchants on its website platform is mainly to food and drink, leisure and entertainment-based, less variety and scale are not large, the site and the business of the limited cooperation, the site is only to provide information on commodity discounts platforms. The website is only a platform to provide preferential information on commodities, the upstream and downstream resources that can be tapped and utilized are not many, and there is not enough attraction to recruit more merchants to participate, while the number of high-quality merchants in the website can be said to be few and far between. And then look at other group-buying sites to provide products, nearly 90% of the service category, in which the service category of goods in the catering and entertainment industry, indicating that other businesses for the group-buying sites to provide a platform and not too much attention.
China's group-buying site is a simple imitation of most of the Western countries, their own not too much innovation, and group-buying site products and services, basically small consumption, most of the more than no more than 100 yuan, the overall site transactions are limited, so that enterprises do not have sufficient funds to carry out the industry's innovation and upgrading. On the other hand, it also reflects the problem of the website itself, providing a very single service, group-buying website can provide services mainly in the form of coupons or discounts, there is no more attractive way to guide consumers to spend.
The current three major group-buying sites are mainly mail and SMS this traditional marketing approach to consumers to introduce the site, from the short term, this marketing means less costly, more profitable, but the radiation area is small and low impact, easy to be borrowed and imitation, group-buying products are almost the same, resulting in the existence of the phenomenon of homogenization. Consumer word of mouth is the most important means of promotion, and the three major group-buying site sales products are the same, not focusing on consumer preferences and consumption tendencies, and thus the marketing methods have not been effective publicity.
The three major group-buying platforms have a variety of harsh conditions for the use of group-buying cards and coupons, the consumption process needs to avoid holidays and other peaks in the use of the movie online selection can not be refunded, KTV rooms full of guests can not be booked, the refund time can not meet the conditions of the "maximum refund of seven working days," and other issues are more prominent. At the same time, the three major group-buying sites have appeared customer service attitude is poor, belittling consumer complaints, after-sales "kick the ball" phenomenon is prominent, rigid service model can not flexibly deal with the problems reflected in the consumer, so that the user once questioned the integrity of the domestic group-buying sites.
The competition in the market is ultimately a competition for talent, an enterprise if you want to obtain long-term development, management personnel must always be insight into market changes, to make agile response, to tap the potential market, to ensure that the platform's stable operation, and the three group-buying site is still a lack of composite talent. For example, in March 2010, the independent group-buying sites have been on-line, the top management team of the public Dianping did not take action; in June 2010, the public Dianping in the launch of the group-buying business, its slow to make it in the group-buying site list is in a backward position.
3.2 Lack of Integrity
Group-buying websites are also a form of online shopping, so there are also some problems in the process of online shopping. Among them, credit crisis is the biggest problem. In the environment of e-commerce, all the enterprises in the online virtual way to show, of course, also prone to false information, in the face of the virtualization of the goods must be paid to buy the situation, some unscrupulous merchants to take advantage of this, network fraud. Like the seller does not ship in time, the transaction fails to refund, after-sales service can not find the person in charge and many other issues. There are also group-buying goods of poor quality, merchants online to provide false information about goods, goods are not satisfied with the refund tough, fake news hype, etc., so that the consumer's psychology of group-buying site more careful and distrust. For example, "GaoPeng", which claimed that 100% of its products were genuine, was found to be selling counterfeit Tissot watches in November 2021, and was pursued by the industry and commerce for its legal responsibility. The lack of integrity of group-buying sites has become a common phenomenon in the e-commerce industry.
The group-buying websites, which were initially established to help offline merchants make full use of their idle services, are now maintaining a low price-driven operation without putting the quality of the merchants' products and services into practice. In addition, due to the entire group-buying market lacks a comprehensive hearing mechanism and clear policies and regulations, which leads to the whole industry's service level of good and bad, transaction disputes, the industry lacks an effective way to solve the problem, the group-buying model drawbacks are increasingly prominent.
3.3 Market Risk
The emergence of group-buying is mainly due to the pursuit of more affordable goods, so the price of consumers is a more sensitive and concerned about the issue, many consumers to participate in group-buying is mainly to run to the discounts on commodities, so it is difficult for consumers to a particular group-buying site to maintain loyalty, once the other site to provide a more favorable price When, then the user will easily betrayed, for enterprises if they want to get more market share, and market share, must provide more attractive prices than other enterprises, which will usher in the intensification of industry competition and profit shrinkage, which can also be considered a more passive involvement in the price war between enterprises. With the intensification of price competition, the group-buying site itself is to provide high discounts to operate. This to a certain extent has made the merchant's profits more meager, resulting in the merchant to participate in group-buying activities of the enthusiasm, initiative and quality of service is not very high, which makes it more difficult to retain consumers.
On the one hand, e-commerce is a sunrise industry in recent years, and the group-buying sites in a few years of the sudden increase in the demand for talent in the industry and the supply of asymmetric gap quickly highlighted. On the other hand, the group-buying industry for professionals with high requirements, not only to be able to skillfully use the site operation, marketing, systems management and other related skills, but also good insight into the market's subtle changes, with a certain degree of emergency response capabilities, in order to be able to work within the enterprise, the group-buying site did not attach great importance to the group-buying industry, the recruitment of talent and training.
4 China's group-buying website business strategy and suggestions
4.1 mode of innovation
4.1.1 business system innovation
In order to improve customer satisfaction and loyalty, enterprises must find their own development model, not only in the consciousness of the need for managers to have a change in the business system within the enterprise is also the need for innovation.
Now exists in people's consciousness of the "group buying" is to business as the initiative to publish some stores or commodity discount information, to attract consumers to order to buy, in the future, it may develop into a consumer is the initiative to "group" to publish some demand information, so as to take the initiative to compare the provision of products or services to the business, and to choose the best. In the future, all kinds of possibilities will appear, which requires merchants to constantly change the inherent mode of thinking and constantly according to the actual situation of innovation. In the merchant's internal management platform, continue to improve, make more convenient, more simple, for example; business cooperation application, merchant information modification, customer reservation, customer evaluation, order processing, consulting and complaint processing, fund management, consumer reservation function, order processing and management function, group purchase goods resale, personal funds account, personal information modification and other operations are not only convenient for the merchants, but also allows consumers to quickly understand.
The lack of innovation in group-buying sites, due to the entry and exit thresholds and low operating costs, many companies are eager to try, began to flock to this industry, just by rough copying and pasting on the flag, from the web page layout, design, profitability and even to the product are all the same. Thousands of uniform marketing methods and similar operational model is difficult to form industry barriers, but not inevitably low prices to attract consumer attention. The market share and customer loyalty thus declined, and it is difficult to maintain the business advantage.
4.1.2 Identify the positioning, marketing innovation
Not only in the traditional business, merchants need to find their own unique attraction to consumers, group-buying sites want to pursue long-term development also need to identify their own positioning.
For example, Taobao Jushu will position itself as an experiential group-buying site, providing value-added, fashionable, and surprising group-buying commodities; Where to go will mainly provide hotel group-buying and travel group-buying; Jumei Yuping will position itself as a fashionable and high-quality Chinese cosmetic group-buying site, providing value-added and genuine cosmetics, skin care, and beauty products; and Tuanbao will provide consumers in 368 cities with a selection of local delicacies, Hairdressing, KTV, cinema, SPA and other boutique merchants, launching a variety of boutique group buy every day; "beauty group" services throughout the country's major cities, providing consumers with as low as 1 percent off the food, entertainment and leisure, wedding photography, beauty salon and other local consumption, these focus on their unique business advantages of the enterprise, in the minds of consumers to set up a good brand image of the site to help consumers understand their own The core point of difference, and thus gathered to the target user group, and thus flourish.
4.1.3 Profit model innovation
The main profit model of the current group-buying site is to rely on advertising revenue and trading commissions to increase revenue, you can open up a new profit model, such as direct sales of goods (in the name of "group-buying" directly on the site to provide information on the direct sale of goods, the source of goods can be their own into the merchant can cooperate with the agency to sell) membership card (drawing on the means of retaining customers in the offline business). To retain customers by means of membership cards to enhance the form of user "identity", and further concessions to enhance customer stickiness) and sub-station to join (learn from the traditional economy in the form of chain franchises, the development of regional partners, both complementary advantages, to achieve **** win) these ways, at the same time, as the merchants should also actively explore their own profit model.
4.1.4 key resources innovation
a. Innovation in website design: group-buying is essentially born with the market demand for local life services, with some regional characteristics, can be used to more subdivided administrative regions or geographic location to dynamically launch group-buying goods. For example, the "thousand products network", is committed to providing users with a can be anywhere at any time according to their own location, willingness, preferences and other factors for life services
choose the platform. LaShou.com's mobile client software allows you to dynamically search for group-buying discounts from surrounding merchants based on your smartphone's location.
b. Customer resource model innovation: a use of existing customer resources to carry out business, for example, some of the more popular website registered users of a large number of Internet users, you can take this part of the people as the basis for customer resources. Second, market segmentation, open up new markets, and gradually cultivate their own customer resources.
4.2 Establishment of integrity mechanisms, rectify the market order
Currently, China's network consumption of legislation is temporarily imperfect, so strengthen and improve the group-buying site legislation is necessary to better regulate the network group-buying market.
4.2.1Enterprises to strengthen their own construction
The group-buying website and merchants are the most important to establish the integrity of the environment because of the need to strengthen self-restraint. Ensure that the products or services announced on the site and the description of the same, true, and do a good job before and after the sale of a series of work and improve the after-sales related guarantee services.
4.2.2 Consumers to improve the awareness of self-protection
Consumers should be careful in the consumption of merchants to choose, do not focus on the pursuit of low prices, we should try to choose a good reputation, good credit site shopping, be careful to order, more comparisons, carefully read the site description, to do rational shopping, to prevent being cheated. After consumption, you should also save the consumer vouchers in a timely manner, in order to prevent after-sales problems can not be resolved, or unsatisfactory service when the right to defend.
4.2.3Establishing and improving relevant laws
The governance of the problem of breach of trust requires the constraints of laws and regulations. Relevant government departments should establish a set of laws, regulations, systems, guidelines, norms and penalties for breach of trust constraints on the management of the relationship between citizens and market players, and effectively strengthen the relevant supervision. Through the laws and regulations and supporting institutions and mechanisms to clearly stipulate the legal responsibility of merchants and group-buying sites, in the auditing mechanism of merchants, must be strict. The review of professional qualifications of specific industries require specific, benign development of the entry and exit mechanism.
4.3 Enhancement of sticky consumption
Most users of group-buying sites are rushing to a variety of concessions to go, there may be the first time there is no second time, the turnover rate is too low, the business can not keep the customer, can not get the long term benefits.
As a group-buying site to be clear about what consumers focus on consumption, dissatisfied with where, for example, for all aspects of the product problems or complaints, as the site of this platform can not just simply answer customer questions, but also for the specific issue of the choice of methods to deal with the dissatisfaction of consumers in a timely manner, so as to attract consumers to shop again.
In order to enhance user stickiness, the site should be for their specific target customers, consider the choice of products and site content, provide humanized services, improve the site's added value, attract consumer attention.
5 group-buying site development prospects
Group-buying industry is difficult to realize the high cost of the intervention of Internet giants, but also a new mode of development, not only to solve the group-buying development of the capital problem, but also help establish industry rules, and further promote the orderly development of the industry. But as the site itself, if you do not want to buy, you can also try to rely on their own "change".
5.1 Business Specialization
Specialized network group-buying market business positioning is accurate, a single service, the site's brand imprint is deep, easy to be remembered by consumers; Jumeiyuping positioned as a fashionable and high-quality cosmetics group-buying site in China to provide value-added genuine make-up, skincare, beauty products group-buying Although the site's product range is single, but as long as the number of consumers, the site's sales terminals can still be guaranteed, the site's sales terminals can also be guaranteed. The site's sales terminals can still be guaranteed.
5.2Promotion mode to lasting business model upgrade
Group-buying sites are no longer low prices as the core competitiveness of their own sites, to create their own new profit model, in the business strategy is also focused on the future.
5.3To the vertical field development
Today's group-buying site mode of existence is mostly integrated type, the website platform to provide services containing food, clothing, housing, transportation and go out to play in every small detail, in the future segmentation of the market to find the target consumer groups, derived from a specific group of people in the community of the vertical group-buying website platform, this is the group-buying site to adapt to the market competition strategic initiatives.
5.4 Reduce the danger of "burning money"
Local group-buying sites in the establishment of the beginning, most of the "first scale after the profitability" of the development of the enclosure strategy, in the case of a high enough market share, can be priced independently. In recent years, the group-buying industry at an alarming rate of investment in a large number of entrepreneurial capital and development capital, but also the rapid emergence of a number of new members, but due to the first investment can not be recovered in a timely manner, forcing them to cut costs, expand the scale, increase the attractiveness of the customer, and because many sites are competing for potential customers, they would rather lose money to grab, resulting in a reduction in profits. According to relevant information, the entire group-buying market gross profit margin of 4% to 9%, and some even less. In many related industries, there will be a similar situation, because their products are standardized, coupled with their own advantages, so they will be in this area under more money. However, the difference is that the group-buying platform on Dianping, the main focus is the combination of high frequency and low frequency. For example, for their overall income, the most important is the wedding, which is a very low-frequency service expenditure. Hungry, cool group network, full seat network and other small and medium-sized group-buying sites, are in order to combat the three companies of the crazy burning money and take a means, that is, to join forces. Both sides can *** enjoy resources, and gradually expand their own business scope, like LivingSocial in the U.S., started from a little-known "hunger machine" consulting company. But they have been making changes and merging with other companies.
5.5 Implications for China's group-buying sites
China's group-buying sites are growing rapidly, and as of March 2021, there were as many as 3,600 group-buying sites in the country,
Not only are listed companies and intermediaries to blame, but also the system that regulates listing behavior and the government agencies that act as the "referees" are also to blame. As the regulator of the Securities and Futures Commission (SFC), often played the "hindsight" image, in the enterprises to be listed on the review, only read the report, but not to go to the field to investigate and so on problems, the responsibility for all the company itself and intermediary structure, and their own stay out of the case, to the public informed of the case, which is a kind of extremely irresponsible behavior.
The profit model of group purchasing mainly includes the sale of products, advertising costs, business service fees, transaction fees, franchise fees and so on. Their business, one is to control the real world materials, one is to control the message, and their profits, often are to the price difference to earn. In the long run, a successful group-buying site will gradually become the core of many users' consumption habits, and will accumulate to a certain extent of resource data, through this center gradually published to motivate more and more third-party developers to develop more and more wonderful services, so that the entire business ecosystem becomes more prosperous. In recent years, the group-buying network has invested a lot of start-up funds and development funds, and a large number of newcomers have emerged rapidly. Group-buying in the process of soliciting customers, the cost is also getting higher and higher, dozens of sites are competing for a special target users, some sites in order to compete for users, at the expense of losing money, this fierce competition will allow them to make more money, or even a loss. They have invested the maximum amount of money, but up to now has not made money, profits are absolutely negative, which shows that the future of the group-buying market, will become very difficult.
The combination of Meituan and Dianping is due to Baidu's 20 billion investment, as well as some other factors, which is a good thing for them. At the beginning, Volkswagen Dianping injected 80 million U.S. dollars into Hungry Mou (Hungry Mou), which is a large group-buying platform, but today, both companies have become allies of Tencent. However, the competition between Hungry Mou and Meituan is much more intense than that between the popular Dianping website and Meituan. Nowadays, different times, Hungry Mou lost the opportunity to merge with other companies, alone in the industry to compete with Meituan, and sometimes may also face a blow to the popular Dianping. This shows how fierce the competition is between group-buying sites in China.
Conclusion
From 2020, group-buying has been in the country into the fifth year, in the experience of the previous red-hot, to the present few, the group-buying market is facing reshuffling, is relying on the Internet giants to establish the rules of the industry, to further promote the orderly development of the industry, or to maintain an independent operation, seek their own way of life to open a new mode of development are group-buying sites to cope with market changes, positive initiatives. Group-buying sites to cope with market changes in the positive initiatives. Group-buying site does not mean that the group-buying market no longer have prospects to speak of, marking a new round of capital, technology and flow for the background, each constantly constructed and local life-related business empire, a new round of competition is about to enter a white-hot.