[China Glass Network] Group buying websites rely on intermediary information from buyers and sellers to make money, and generally concentrate on providing local services in one city. This also reminds me of the past advertising model in the same city. The Internet has also been established. It relies on information to attract users and make profits by advertising or paying. In addition to advertising in the same city, I also think of housing leasing agents. They rely on tenants to make money, and of course they have to provide information and services to consumers. I think group buying is very similar to the combination of these two types of services, looking for potential sellers of discounted goods, providing this information to consumers and drawing from them. If you encounter an ideal situation and find the sales revenue data of the discounted goods in the retail industry, we can roughly estimate the size of the group buying market in each city. At present, my estimation result is very pessimistic, the scale will be very small, and I can't accommodate so many competitors. In Beijing, you can count out hundreds of them. If the group buying websites all over the country are put together, this market space is estimated. The current state is also considered to be a not too big industry, and only a few group buying websites that specialize in group buying survive.
Later, let me summarize, why I am not optimistic about the current group buying model and the problems he needs to solve:
1. Face competition from other preferential discount industries.
2. Can it bring the increase in sales revenue or the improvement of advertising effect to the merchant? This is a question to be answered. For example, luxury goods, too many group purchases will affect the income of stable sales.
3. The product is not what the customer wants, but the product is selected from the taste of the website. In this way, only a certain percentage of the total number of users of a group purchase website will be purchased. Matching demand and supply is currently not efficient.
4. The merchant will not use the group purchase website as a stable sales channel, and the product will be purchased when the product is promoted.
5, the experience is not good, consumers will lose. This has a negative impression on group buying websites and even group buying industries.
The group buying industry is also a discount commodity intermediary industry. I think that compared with the current fierce competition, so much money is invested in this industry. In the future, the money earned by this industry may not be able to make up for the investment. A good trend is that group purchases can be integrated into vertical domain websites for promotion and sale. Consumers are more homogeneous, information diffusion will be efficient, demand is clear, and it is easy to get approval from merchants. Such demand from buyers and sellers will make group buying of vertical websites a promotional channel or a wholesaler of mass goods.
A new model will inevitably have a bubble. At the beginning, there are always brave people and stupid people who will bet. The difference is that brave people will see the opportunity, whether the industry can be as big as the oil industry, the energy industry or the financial industry, they can always gain a foothold in it, get their share, and then earn money.
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