Community group buying: what do you think is right? How can it be done?

  Community group buying, with its suicide dumping, shopping-style group spot competition, and profit-oriented private domain refreshing, developed “pathologically” once it came out. Extensiveness, eagerness, and forgotten profits led to the collapse of some community group-buying e-commerce companies. In the future, whether community group buying will “demise” or will it be reborn from the ashes? All this will have a big question mark.
What do you think about community group buying?

  The business model is constantly innovating and iterating. Although the technical content of community group buying is low, the macro policy encourages consumer services. The industry needs to be cleaned, integrated, reshaped, and overweighted to form a healthy and orderly development. The key to thinking determines the way out lies in logical thinking.
  Lean extensive expansion or expansion
  based on large-scale, platform growth, drive traffic and financing needs, the community generally go buy the expansion of the extensive expansion of the road. However, focusing on quantity rather than quality has broken the project, smashed the supply chain, warehouse distribution and distribution channels, and caused channels and warehouse distribution members to overcharge their numbers. Since the establishment of Tongcheng Life, Shihui Group, and Food Sharing Club in 2018, Meituan Selection, Dodo Shopping, and Orange Heart Selection have quickly entered the game in 2020. At the same time, Prosperity Selection and Shihui Group have received capital increase blessings, which are basically completed in just one year A nationwide layout. However, haste is not enough. Insufficient support on the supply side, insufficient capacity on the operation side, insufficient funds on the circulation side, and insufficient resources on the service side have led to insufficient marketable goods, insufficient distribution capabilities, and insufficient customer service capabilities.
  Promotion to traffic or for profit
  community group purchase platform generally have giant traffic blessing, preferably behind US group has US group platform; a lot of grocery shopping behind to fight a lot; behind ten Hui group Alibaba MMC; Cai Cai Amoy Alibaba support, Taobao, Taote drainage. However, the flow stock is limited, and it is necessary to fight for the amount from the stock. As a result, the price concession wars with the goal of traffic wars and new pull-outs have continued. As a result, group buying platforms do not make money, cannot burn money, and burn money while raising funds, and eventually shrink or get out of the game. In the past five years, the community group buying track has burned a total of 50 billion yuan in funds.
  Pilot first or synchronous expansion of
  some of the business community to buy eyebrows and beard grabbed, start a comprehensive urban development agents, agents grid positions, blobs head mode, the result of haste makes waste. A full-scale open city model is not advisable. Pilot projects should be selected and “experimental fields” should be selected instead of crossing the river by feeling the stones and making adjustments while expanding. In particular, the regiment leader’s management policy, interest task indicators, and profit distribution policy are three a day. The changes resulted in unstable hearts and lack of confidence in the heads of the regiments, and they even ended up winning the resignation of the heads. Therefore, the first-tier, new first-tier, second-tier, and third-tier city markets can be selected for pilot projects, and the business model and operating mechanism can be summarized so that the strategy is realistic.
  The conversion needs the location. In addition to the mini program, APP, and WeChat community, the physical store in the community (the leader’s side) is also the key location. The failure of community group buying lies in the formal recruitment of group leaders and the eagerness to expand and assess KPIs for BD group sites, resulting in poor group site quality. Community group purchasers lack effective planning for the quality of group sites, especially their community group purchase franchise, controllability and quality, resources and capabilities are neglected to assess and assess. In addition, the management of middlemen (city center warehouse agents, grid warehouse agents) is too extensive, and their determination, capital capacity, and service capabilities are insufficiently considered, which causes the waist of the circulation chain to be broken and cannot continue to operate.
  Customers come first or the platform to make
  the distribution of benefits among community members decided to buy the value chain “total meal” length of time, including suppliers, buy platform, the city center warehouse agents, warehouse distributors and the head of the grid. At present, the practice of group buying platform vendors is to first make money from city center warehouse agents, grid warehouse agents, and group leaders. The logic is okay, but in fact it is the same, even though the platform suffers serious losses. However, there are two issues that affect profit distribution: First, due to the limited scale of platform procurement, it is difficult to obtain a reasonable reserve price. Although the focus is on incubating high-quality, explosive, and essential products, it will take time. Secondly, many of the team leaders are convenience stores. It is inevitable that the brands, categories, and items are overlapped or similar to the platform, but the price system is very different, which leads to the lack of enthusiasm for the team leader to promote certain products on the WeChat private domain.
  Unlimited sinking or sink limited
  target market is crucial, not only to population stratification, also relates to the market level of the hierarchy. There is an abnormal phenomenon in the community group buying market. Data shows that among the markets developed by community group buying companies, 46% are developed in fourth-tier cities and below, 24% in third-tier cities, and only 30% in first-tier, new first-tier, and second-tier cities. , This is an upside-down phenomenon. Of course, in addition to the uniqueness of Pinduoduo’s Duoduomai, it is concentrated in the surrounding markets of large and medium-sized cities and the third to sixth-tier markets. For other community group buyers, it is putting the cart before the horse.
How can community group buying be made?

  The community group buying industry is reasonable and valuable, and it has the advantage of increasing the amount of traffic from the stock. Meituan Optimum, Duoduo Shopping and Hema Neighborhood are still strengthening their community group buying business. In September 2021, Hema Market and Taobao Maicai will be integrated and upgraded to a new brand, Taocaicai, and will adhere to the strategy of steady and steady sales and increase investment. Reflecting on the failure, the future path of community group buying should be changed.
  Variable light asset management as the most important asset management
  performance facility asset-light business may not be effective, asset-heavy operation (primary processing, cold chain, warehousing, logistics, stores from mentioning) through enhanced supply chain and warehouse distribution capability to enhance the vitality of the community buy. Fresh produce is a high-traffic commodity for community group buying. The establishment of planting and breeding bases, processing bases, and production warehouses based on the original place of origin is the foundation of a stable supply chain. These have become the consensus of Meituan, Pinduoduo, Alibaba and other companies, providing community group buying Source agricultural and sideline products support. In addition, the shared warehouses, regional warehouses, central warehouses, and grid warehouses in the community group purchase supply chain and warehousing system should not blindly pursue light assets, and can use sole proprietorship, joint ventures, funding assistance, etc. to control and stabilize the warehousing and distribution system. Community group buyers rely on major Internet companies and have this ability in terms of funds, talents, and technology. Finally, for the construction of the group site (the group leader’s side), in addition to choosing community convenience stores and fresh food stores to cooperate, it can also self-operate or joint venture to establish community convenience stores, and support the group leader to open stores, and carry out visualization, standardization, and digital transformation. In particular, there are 6.6 million mom-and-pop convenience stores across the country, which are the closest to residents, occupying 40% of the market share of fast-moving consumer goods, and can achieve the goal of “a quarter of an hour to facilitate the people and benefit the people in a smart community living circle”.

  In short, if the performance facilities are not sound or unstable, and the city center warehouses and grid warehouses in the channel value chain adopt an agency system, it will be difficult to support community group buyers through the most difficult investment period. Only dedicated, dedicated, and professional can do business well. Community group buying cannot be regarded as a sideline business, otherwise it will not become a climate. Therefore, some community group-buying e-commerce companies adopt the method of “moving the disk” to establish city center warehouse agents, grid warehouses and agency group points, that is, first develop independently, and then transfer to employees or newly recruited partners when they are more mature. But this is the same. Lack of stability. After Hema Neighborhood and Taobao Maicai merged into Taocaicai, they tried multiple models of warehousing and distribution performance asset investment, and actively built offline standard stores to support group purchase users to pick them up.

  Hierarchical clustering of target market and reasonable
  market stratification. Some community group buyers have sunk their business to fourth- and fifth-tier markets, reaching the township level or even in rural areas. Unless they rely on Pinduoduo and Taobao, other community group buyers will have little to do. In fact, first-tier markets, new first-tier markets, and second- and third-tier markets have the largest operational space. It will be difficult to achieve fourth-tier and fifth-tier markets or even rural markets. This is no different from competing with traditional e-commerce companies such as Taobao, JD.com, and Pinduoduo. The advantages are at all.
  Target market segmentation. According to WeChat data, community group buying currently accounts for 80% of female users, and 25 to 49 years old account for 65%. However, the user portrait should not be written here, but should be based on the family scene and the unit scene. Family members and unit colleagues can enter the private domain WeChat group through sharing and fission, and further operation by the head of the group. Pinduoduo and Taocaicai relatively weaken the private domain operations of the group leader, but it is not impossible.
  At the same time, consumer group buying scenes can be diversified, such as at work, at home, or on the road, delivery scenes can also be diversified, such as group pick-up, delivery to home (half an hour or next day), smart storage cabinet (placed in Subway stations, property companies), etc.
  Goods are connected blobs of high-quality tool
  community buy electricity providers to do the whole category unrealistic, but do necessities, consumer goods and high-frequency products just to be realistic. Before the community group purchase opens the city, it is necessary to establish a preferred product pool, which integrates imported products, customized products, private brand products, selected products, agricultural and sideline products, and other products that are differentiated from the community convenience store, so as to obtain online traffic and sales. Well, it can also create benefits for community convenience stores, fresh food stores or other community mom-and-pop stores as group points. Own brand and customized products can create DTC (Direct To Customer) products through the C2M (Consumer to Factory) model. C2M is the best mode to obtain private-label and customized products, accounting for 30%-40% or even higher. Selected products can choose to harvest the top brand strategy, such as the top three brands in the market, and the top brands carry their own traffic. Special agricultural and sideline products can be purchased from the source of agricultural products, the main producing areas, and even self-built farms and pastures.
  Due to the low-price dumping of community group buying, many brands are dissatisfied. After the impact, the ambiguous brand owners changed their attitudes: Arowana used community group buying channels and provided customized products; Lai Yifen emphasized the construction of community group-to-store self-mentioned takeaway home delivery business; COFCO Coca-Cola took community group buying as New business, seeking new volume.
  Buy platform with blobs private domain traffic condominium
  community buy platform initially recruited the head, just based on the unloading, cargo handling, user liaison and other functions, the flow was insufficient to force the head of micro-channel group, applets, APP pull new and transformed Private domain traffic. The traffic on the fulfillment side should not only accumulate at the group site, otherwise, the loss of the group leader will result in the loss of private domain traffic and the brand image will be damaged. The community group buying brand is the traffic aggregator, which can unify user data management and data analysis based on regional operations and group leaders. The leader of the group establishes a WeChat official account, which can communicate with fans of the community group purchase applet or APP store, making fan communication and data sharing a reality.
  Therefore, the real private domain traffic management is based on the customer life cycle, starting from multiple links such as new acquisition, activation, conversion, retention, repurchase, and promotion. “Value-added services to enhance customer stickiness is an effective way to consolidate the loyalty and repurchase rate of private domain users. In addition to building cloud convenience stores, cloud shelves, and Yunsheng, Taocaicai offline stores have also created a composite service function: Taocaicai self-pickup points, fruit and vegetable stores, department stores, live broadcast rooms, recharge stations, express stations, and charity Corner, to provide users with value-added services.