introduction: foreign media published an article today, because of the appearance of fake products and increasingly fierce competition, the once popular Chinese group purchase market is rational. Recent reports show that there are a number of buy site closed, while venture capital is exiting the Chinese market.
below is the full text of the article:
buy site to provide consumers with daily discount information, and at the same time according to the agreement with the merchant to sell goods or services at a discount price. China has nearly 6000 group buying sites, most of which are backed by venture capital. However, according to the data gathered to buy the service group announced last month, in October the Chinese market has 456 buy site closed, making the total number of closed this year to buy the site reached 1483.
analysts pointed out that almost all of the sites are operating at a loss. Michael, managing director of RedTech · Advisors (Michael Clendenin), said: at present, investors want to make money will no longer buy in the industry to spend more money."
he also said: the overall attractiveness of the e-commerce industry is also declining, because the Chinese market is very competitive, only the most powerful financial strength of the participants in the final victory."
The success of
Groupon business model, as well as low barriers to entry into the industry led to the emergence of the Chinese market thousands of imitation Groupon site. A large number of these sites advertising marketing, and through the revenue sharing with the merchant to get revenue.
handle network earlier this month to enterprise development as an excuse to postpone the listing in the United states. As the world’s largest buy site, Groupon’s current share price has been lower than the IPO (initial public offering) issue price.
Qiming, managing director of Gary · Lihill (Gary Rieschel) said: "in this area, the current liquidity has rarely. Groupon’s share price has fallen by 50% from its peak, and you can expect that there will be no new investment in this sector in china. Over the past 18 months, the Chinese buy site has received $700 million in investment, of which 80% of the investment will not be any return."
due to the group purchase selling fake Tissot, Gaopeng online public opinion has become the focus of the end of the month. Gaopeng is Groupon and the Tencent joint venture. In August this year, Gaopeng has closed 10 offices and hundreds of layoffs. The site is also not recognized by McDonald’s sales through the sale of coupons, resulting in a large number of consumers to participate in the purchase of coupons can not be consumed.
analysts pointed out that in China, due to the supply chain and suppliers of unreliable, fake is a common problem, and buy site is not deliberately selling fake. In addition, only to carry out group buying business will not have much prospect, but at the same time