In 2022, there is no war for community group buying

2022-06-07 0 By

Take shiyang community group buying cool, the head of the commission dropped in the community group buying between the ups and downs, the heads of the community group buying felt the tremendous changes, experienced a “fire and ice”.When the community group buying platform was trying to grab leaders, Henan Shengsheng preferred to recruit “leaders” with 10% to 15% of the commission, and told the leaders participating in the platform that “they can earn more than 5,000 yuan a month,” which is a very competitive salary in many places in Henan.Zhang Zhi, who joined the community group-buying platform in late 2020, told Weekly Caijing World that the platform initially offered a commission of 10 percent of sales, and sometimes offered other subsidies with an extra 50 yuan for sales of 1,000 yuan.But less than two months into the subsidy war, Mr. Zhang said, commissions dropped to about 7 percent from 10 percent and event rewards were reduced.The war of burning money in 2020 did not last long. In 2021, the subsidies of the community group buying industry also tended to be flat.But in some areas, the platforms are still fighting each other.In January 2021, Yang Yang, the owner of a community supermarket in Langfang Dachang, had just taken over a supermarket. He told The Weekly Caijing World that the two men had failed to make money working together before, but finally gave up.He paid a transfer fee of 30,000 yuan and took over power equipment, community group buying and cooperative delivery services.”When I first took over, community group buying was also quite wonderful. The rewards varied. Meituan took 10% of the commission, and the first few days were all bought by community acquaintances.”Yangyang said that after a short period of work, due to various force majeure, “Meituan, Duoduo and JINGdong all stopped selling.”As far as he knew, Wumart also joined in at that time. Wumart was relying on multi-point delivery of goods, but there were few categories and high prices. After Meituan and Duoyumen resumed delivery, few people placed orders for Wumart.Another community group buying platform, Orange Heart Best, has only been doing it for half a year.”Orange heart preferred to enter our area, the first month to make money, after the ‘soy sauce’.After the reward shrink, the leader is not willing to promote, dry orange heart optimization for half a year, gave up.In the summer of 2021, he recalls, The Orange Heart Option was shut down for half a month, and suppliers were reluctant to work.The big money war appears to be settling into a stable pattern from the second half of 2021.According to media statistics, after the old players fell down, the community group buying platform formed the first echelon of meituan preferred and Duoduo to buy vegetables, accounting for more than 30% of the market.The second echelon is taocai dishes, Xingsheng preferred, Jingxi Pin-pin people.Since Yangyang participated in community group buying, he also found that since the second half of last year, there are only three platforms left on his platform: Jingdong District Buy, Duoduo Buy vegetables and Meituan Select.Among them, the competition between Meituan Preferred and Duoomai is particularly fierce.In August 2021, among the platforms in which Yangyang participated, the commission income of Duoduo Mai was only 77 yuan, meituan Youxuan was only 60 yuan, and Jingdong Zhougou was 80 yuan.In October, Tao Chaicai opened kaesong near him, but it did not make waves.Until January 2022, Due to a number of force majeure, Duoduo Maicai’s warehouse in Tianjin was affected and replaced.”During that time, the orders of the group that bought more dishes were cut at 9 PM, which made many users who placed orders between 9 PM and 11 PM very uncomfortable.”It was at this point that Meituan’s preferred order volume exceeded duoduo Mai’s, Yang told The weekly Business World.The commission brought by Meituan Preferred is sometimes twice as much as that brought by Duoduo Shopping. However, after jingdong Diangou changed its name to Jingxi Pingping, the commission decreased gradually to less than 100 yuan per order.Yang Yang laments that for a small supermarket, the monthly commission of the group buying platform can be maintained at about 5,000 yuan. With express delivery and supermarket sales, the monthly income of 10,000 yuan is still ok.”You can’t make a lot of money, you have to earn pennies to live on.”Langfang Dachang, where he works, is just a corner of the battle of community group-buying platforms, and the whole industry has been in trouble since 2021.The original “big three” have either disappeared or gone silent, leaving behind a bunch of “debt collectors”.Life and food clubs have been closed down, and Party of Ten has been in the midst of layoffs and debts.According to media reports, the party’s Beijing headquarters has been emptied of offices, as has its changsha headquarters.Every day, security guards in Beijing receive dozens of door-to-door suppliers who owe millions to tens of thousands of yuan.Even the security company’s money, party of Ten can’t afford it.The collapse of the Party of Ten seems to have been foretold.Around August 2021, Party Ten began large-scale urban evacuation and layoffs, and shut down its business in 21 urban areas across the country.At that time, Lao Liu, the supplier of Party TEN in Shanghai, noticed that the company was in trouble. At that time, Party Ten’s business in many regions of China “retreated”, including Guangdong, Fujian, Shanghai and other regions, and jinan was the only one left in Shandong.But liu was reassured by the company’s “strategic retreat to find a better direction.”By the beginning of December last year, Liu’s arrears had accumulated to 160,000 yuan.By the end of December, as far as he knew, there were only 5 people left in Hangzhou. The financial department of Beijing headquarters allocated funds every week to remit money to suppliers in batches. Only one withdrawal per week could be applied for, and each withdrawal was no more than 10,000 yuan.For Liu, it will take at least half a year for him to come forward, and he may not get the money.Near the end of the year, suppliers have to collect debts, close to the Headquarters in Beijing, and even some suppliers directly find investors, drive to Hangzhou Ali headquarters, the name of the double flash, drive to pull the banner around the company a circle of turn.Until January 25, 2022, there was a “one-time settlement plan table” circulating in the Collection group of Party Ten.Party Ten offered a solution to the suppliers. The company offered the suppliers a 30% discount to settle the overdue payments due to “its own limited funds and the uncertainty of subsequent funds”. The final deadline is Before February 10.If after February 10, there are still outstanding merchants, the company will implement a 20% discount plan.Party TEN advised the suppliers to try their best to solve the problem before this date, “the later the solution, the lower the benefit of the supplier”.With only a few days to go until February 10th, suppliers still don’t know whether to sign on.(Photo: VCG) The exit of the food festival is more “low-key”.By July 2021, the club’s headquarters was empty, and the official website and mini apps were unavailable.When the outside world speculated that its closure, but the founder came out to respond to the “Food club is a transformation”, the transformation of the new business for “Love Snacks”, positioning as a community snack convenience store.But the bitter is a group of a group of suppliers have not been paid.On January 14, 2022, a supplier posted a message in its moments, asking “who has the contact information of the food club”.It is understood that the food club still owes him hundreds of thousands of payment has not settled, so far can not find the relevant person docking this matter.The supplier told Caijing World weekly that since 2019, he has cooperated with community group buying such as Food Club and City Life to provide a full range of products.”When I joined, everyone thought I was in a pyramid scheme, but I was one of the biggest suppliers by volume.””He said proudly.As of early 2020, the platform supplied by the aforementioned supplier would have given him a net profit of 7 points.However, in August 2021, “performance costs are so high that only two points of net profit will be made”.As far as he knows, he lost nearly 3 million yuan during the same trip.The “third group” is still struggling, with only prosperous selection left.Although Xingsheng preferred to get 3 financing in 2021, in the face of the collapse of the two old players, xingsheng preferred to some anxiety.Recently, Xingsheng optimized small program in the category of clothing increased a column, online a large number of women’s clothing styles, covering young users to middle-aged groups.In fact, as early as November 2021, It bought a 40 percent stake in hunan Enyi E-commerce Co., LTD., according to the Tianyan APP.The company was just established in October 2021, and its business scope includes clothing production and sales.This is also prosperous preferred strategy after contraction launched new measures.Since the second half of 2021, Xingsheng preferred in Shandong, Shaanxi and other places daily single volume decline serious, Zhejiang, Jiangsu, Anhui and other places also encountered “not satisfied with the soil”, Xingsheng preferred to suspend new and expansion plans, back to Hunan, Hubei area.A number of suppliers interviewed by The weekly Caijing Said that they had been trampled on by multiple community group buying and were afraid to join other platforms because they could not find anyone to recover the payment.At present, they insist on supply, only meituan preferred, duoduo buy vegetables and a few other platforms.A user described the changes of community group buying in this way: “The ups and downs, orange heart is down, more and more, Meituan ugly, Shihui group can not open.”Back in 2020, community group buying ushered in the outbreak, after the Internet giants joined, the track was very busy.In June 2020, Didi launched its community group-buying platform “Orange Heart Best”.In July, Meituan launched the “Meituan Preferred” business;In August, Pinduoduo launched its “Duoduo Buy vegetables” business, while Hema established hema Preferred Business Division.In October, Suning launched its community group-buying platform in Beijing.By November, Didi had no cap on community group-buying, hoping to take the top spot in the market.In addition to the new players, the “old three team” also got the support of the giant.Party group got The financing of Ali, Xingsheng preferred was jingdong, Tencent investment;With the life behind standing yuan he capital, xianghe capital.Chumcha data also showed that between January and May 2021, the total financing amount of community group-buying industry exceeded 26.2 billion yuan, exceeding 17.17 billion yuan in the whole of 2020.However, the Internet giants into the way is simple and crude, heavy money into the market, the business logic of the whole community group purchase also began to become chaotic, and soon the community group purchase platform also had to join the internal volume.”1 cent to buy eggs”, “1 yuan to buy a carton of milk”, the Internet is also in the community group buying “heart of the universe” changsha set off a battle for the leader.By December 2020, meituan preferred units exceeded 20 million units/day, while Orange preferred units exceeded 10 million units/day.At the same time, the third team is not immune to the Internet’s fierce competition on the track.At this time, the industry also caused the dissatisfaction of suppliers, “on the prohibition of supplying to the community group buying platform supplier notice” single out, community group buying was boycotted by suppliers, the outbreak of supply disruption.In December 2020, the State Administration for Market Regulation stepped in and put forward the “nine Bans” to regulate the operation of online platforms in community group buying.In March 2021, the State Administration for Market Regulation imposed administrative penalties on five community group-buying enterprises, including Orange Heart, Duoomai, Meituan, Shihuituan and Food Club, with a total fine of 6.5 million yuan, due to unfair pricing practices such as low-price dumping.In May 2021, the State Administration for Market Regulation fined Party Group 1.5 million yuan.In June, Meituan and other platforms received another rectification request, among which Meituan’s “kill every penny” products were required to be removed from the shelves, while other platforms were required to continue to tighten subsidies.In September, the General Administration of Market Regulation again launched a severe investigation and punishment of low-price dumping, price fraud and other illegal acts in the field of community group buying.Under the further tightening of regulation, community group-buying platforms have begun to be restrained.But the sudden escalation of the war, but let too late to supplement ammunition with life, food will be captured.Before their demise, both players told the outside world that it was the giants who intervened that blocked their way forward.Some insiders said that the founding team of the community group purchase project was based on wechat business and wechat circle of friends traffic to cash, for the purpose of profit.But when capital came in, the founding team began to cater to capital’s rules of the game, raising money for the sake of raising money, without considering how the project would take root in the consumer market and how to make money.Transaction data has become one of the targets of capital assessment, and also become a means for these people to fight for market share with subsidies, but ignore key factors such as supply chain warehousing and logistics, quality control traceability, procurement and sales closed-loop management.By the second half of 2021, the industry is starting to cool off, moving from excessive pursuit of GMV to a pursuit of profit and modest pursuit of scale.Jingxi Pingping also began to shrink, while Chengxin Preferred withdrew from most areas. Until December 21, Chengxin Preferred was officially removed from didi Chuxing APP. The original entry of “Chengxin Preferred” has been removed from the life column of all services.The disorderly war that community group buys, capital also began to slow down pace, hold wait and see state.In the first five months of 2021, there were only eight financing cases related to community group buying, and there was no financing event in community group buying this year after two financing cases in July, according to Chumcha data.Now the tide of capital ebb, community group buying platforms began to think calmly about their own business model, the former head of the major community group buying platform, suppliers, can only seek their own way out.