In 2010, three major dramas: "The Orphan of Zhao", "If You Are the One II" and "Let the Bullets Fly" were extremely popular. In 2011, the group buying industry also staged a drama of the same name. It's just that the film in the cinema won word of mouth, but the three-act play of the same name directed by the group buying industry made itself famous. Group buying websites, offline merchants, and online scalpers have become the main actors in the three dramas, hurting the new year drama of "self-excessive consumption" of group buying.
Act 1 "The Orphan of Zhao"
Merchants are trapped and helpless by group buying websites
In order to take advantage of the booming group buying market in 2010, many businesses cooperated with group buying websites at all costs, believing that they could make money through group buying with small profits but quick turnover. However, as everyone knows, group buying is not as simple as imagined.
According to insiders, during the group buying process, the group buying website not only collects commissions on the corresponding goods, but also participates in setting the prices of the group products; in most cases, the merchants cannot determine the final group buying price.
In other words, whether a product can become a group product or the price of a group product is decided by the group buying website. Unknowingly, group buying websites have become the leaders in formulating rules, while merchants are left in an isolated and passive position.
In order to attract consumers at low prices, group buying websites not only suppress merchants on price, but also often make unreasonable demands. Many merchants are angry but dare not speak out for group buying.
The old catering company Jinwanwan revealed to reporters that in order to stimulate consumption, Jinwanwan launched a group buying activity with city branches and suburban branches. However, during the negotiation process, a certain group buying website relied on its industry status to make an unusual proposal. The company has strict conditions, claiming that it can only accept branches in the city and refuse branches in outer suburbs to participate in group purchases. In the end, the cooperation ended on bad terms. However, the Jinwanwan incident is just the tip of the iceberg. The conflict between merchants and group buying websites will become increasingly prominent in the future, and this will surely be a protracted battle.
Act 2 "If You Are the One II"
Group buying faces credibility nuisance due to attacks by scalpers
In fact, it is not just merchants who are trying to do group buying. Group buying websites are also trying to do this. Even "online scalpers" have taken a fancy to this new business model and are trying to sell goods to take them all.
It is understood that by registering vests, they first buy large quantities of goods online, and then sell them through online stores, offline transactions, etc., and the profits are very considerable. However, the scalpers' behavior of wantonly reselling group buying coupons to earn the price difference has aroused the dissatisfaction of many consumers. Some group members even suspected that this was a secret operation of the group buying network, with the purpose of increasing profits and issuing second group buying orders under different identities. From this point of view, rampant scalpers not only disrupt the normal trading order, but also seriously impact the credibility of group buying websites.
In order to curb scalpers and meet more consumers' demand for group buying, group buying websites have to lower restrictions and increase the number of group purchases. However, the consequence of this is that frequent group buying will disrupt the normal marketing rhythm and bring excessive cost burdens to merchants. Moreover, the power of scalpers is still very small in the early stage of group buying. As demand increases, the phenomenon of scalpers will inevitably increase. Intensifying.
Opening more group buying is treating the symptoms rather than the root cause, and is also consuming the entire group buying industry in advance. Judging from its essence, the popularity of group buying second-hand trading platforms also reflects the irrational consumption of the public on another level. The inducement is a kind of impulsive consumption. Under the trend of low prices, consumers ignore the restrictions of time and place. Unconsciously excessive group buying.
Act Three "Let the Bullets Fly"
Relying on group buying to attract money hit who committed suicide marketing?
As mentioned at the beginning, there are 1,726 group buying websites, including movie tickets, beauty coupons, dining coupons... almost every industry is involved in the group buying trend without exception, but have businesses with the idea of group buying made money?
Group buying websites attract people who are sensitive to online consumption, and the word-of-mouth effect is particularly important among this group of people. In this regard, Hu Chen, co-founder of Tuan800, believes that the ultimate meaning of group buying is the accumulation of word-of-mouth. In layman's terms, it means losing money and earning praise. What merchants should really focus on is the advertising platform of group buying network. Compared with huge advertising costs, participating in group buying is to attract customers at low prices and gather popularity. The effect is similar to that of trial products, allowing more people to recognize the products and win good reputation. reputation.
Beijing Jinwanwan has group buying activities on many group buying websites, and netizens can get a roast duck for 25 yuan. The person in charge said, "The cost of a roast duck is 78 yuan," which is equivalent to losing 68% of the money to gain popularity and spending money to gain reputation.
It is reported that the purpose of most merchants participating in group buying is to make small profits but quick turnover, in order to make money. Many merchants regard group buying as a life-saving straw for their enterprises, trying to use group buying to clear out hoarded goods and achieve short-term cash flow, without considering other consequences. By using low prices to attract consumers, they chose to lower quality and service under the requirements of profit costs, and promotion turned into suicide marketing.