Friday, March 11, 2011

Domestic group purchase financing deficiency Mong Kok profitability worrying

Zhang Ai-ling said, known as early as possible, is at the moment “ battle of the thousand ” whirlpool group buy domestic enterprises are well versed in this. Spent “ first year of group buy 2010” after the group purchase companies, are moving into a new wave of fighting.

This wave of fierce fighting signal is significantly, subway, transit stations, office buildings, elevators and other public places to fasten everywhere brand advertising, group purchase enterprises began to throw money to advertising regardless of cost, big up marketing brand, at the same time for the online channel expansion and the expansion of the business resources of busy.

after financing in advertising

however, requires a lot of these marketing funds to support, and this is the must-have chips of enterprises survive. Obviously, behind these moves, pushing hands of venture capital are important, the momentum even in a slightly out of last month's investment market is also still strong.

display information provided by the Center for venture research, industry is still investment hotspots in February, a total investment of 23 cases last month, Internet industry, 8 of which investment cases, 34.8% of total investment cases; in that which has entered a “ scrimmage time ” group purchase website has been the object of venture capitalists Chase.

“ financing of the success of the first thought is through advertising and marketing, after all, who first recognized in the market was to have the first mover advantage, this advantage is not only reflected in marketing results, and low cost, more easily in the industry quickly based on. ” Qiming Venture Partners Tong Shihao said.

Tong Shihao told the China business news reporter, group purchase industry will continue to finance last year warm this year, top enterprises will thaw more money in the industry, promote competition more intense.

investors hesitate

behind the competition, is that investors see the domestic development of group buy weakness. One unwilling to disclose the names of investors told reporters, before the Spring Festival there have been two group buy enterprises got a letter of interest, but ultimately investors chose the divestment.

“ advance into the Group buy Enterprise often can make money in the area, but with the fierce industry competition, many enterprises approach deformation, coupled with many giants of the Internet for customers involved in the field of, is that investors become cautious to investment in the sector. &Amp;rdquo;

light industry was born with the Internet assets of imprint, this property determines the group purchase sites attract investors when talk to rely only on the size and performance, so easy to let the industry into a vicious circle.

the above investor revealed to reporters, only profitable channels is currently part of the Group buy website point of sale, each done before a group purchase item, group purchase sites can make money by takes, but many customers now website in order to attract popular and merchants, does not extract any group purchase Commission, there are even many dianqian itself, losing money earned.

“ now whether it is marketing channel expansion costs are a significant upgrade, this also means that its ongoing financing needs to be increasingly, expect to bulldoze the competition rely on economies of scale and low price, but the actual profitability is poor, this situation is clearly unwilling to let investors are willing to pay for this continued.
&Amp;rdquo he said.

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