While Toutiao is preparing to make every effort to deploy the takeaway industry, the group buying field has already become a sea of ​​blood.

Alipay and Wowotuan, one provides traffic and the other provides funds, combine the two to directly cover the huge subsidies to most economically developed cities.

Faced with this kind of competition, Tengxun and Lashou.com found that users who are already tired of playing the like mode obviously prefer Alipay, but they cannot directly copy Alipay's model, because Tengxun's purpose is to attract traffic to WeChat and occupy the group buying market by the way.

In this case, WeChat can only reduce the number of likes in all aspects and use simpler operations to attract users, but this process will lead to indirect upgrades of subsidies. In order to prevent excessive consumption of funds, Lashou.com began to limit the number again, which led to a large number of users collecting enough likes and running to the hotel excitedly, but found that the quota was gone.

After a greeting in my heart, many users were no longer willing to participate in this kind of activity.

But no matter what, the battle between Teng Xun and Alibaba has put huge pressure on countless other group buying websites, not only the consumption of funds, but the confidence of the capital behind it is the most deadly.

Although some venture capitalists do not think that Alibaba and Tengxun will eventually form a double monopoly in the group buying field, after all, crazy subsidies are time-limited. After that, other group buying websites still have their own opportunities.

But the question is, when will the money-burning war between Tengxun and Alibaba end? How many of the group buying websites that are active in the market can survive until that time?

So some capital began to withdraw, while the other part was still in a wait-and-see period.

However, a news from the United States completely broke the last insistence of countless capitals in the group buying field.

In 2011, due to the subprime mortgage crisis, the entire U.S. stock market showed a downturn. Although the Internet industry has no big connection with mortgages, under the overall losses, countless investment banks and shareholders have suffered heavy losses, and it is difficult for Nasdaq to survive alone.

Just at the beginning of this year, the American group buying giant Groupon applied for listing on the Nasdaq, and received unanimous support from investors, investors, investment banks and the authorities. It is an Internet company with a huge market share and a clear profit model, which is very easy to be sought after by all kinds of funds.

However, the smooth development has also made countless other giants jealous. In April this year, Google and Facebook launched their own group buying websites, and at the same time used their huge traffic to attract traffic to the group buying business.

When Groupon faces the entry of giants, it can only choose to fight head-on. Without traffic, it can only adopt offline publicity model and provide large subsidies.

However, can your new company compete with search and social monopoly giants?

Google and Facebook have also launched huge subsidies one after another. Coupled with group buying websites of other brands, a group buying war like China broke out in the United States.

However, unlike China, the US stock market is very developed and any feedback on the company is also very obvious, especially these group buying websites that are about to go public.

In early September, it was suddenly revealed on the market that Groupon suffered huge losses in the second quarter due to subsidies, and at the same time, the merchant's final transaction volume was included in its own turnover to increase its data so as to raise more funds for listing. After this behavior was exposed, more people naturally doubted Groupon's future.

Subsequently, the media repeatedly exposed that other group buying websites also had the same behavior, and the group buying business of Google and Facebook was implicated.

Due to the fierce competition, all group buying websites have been trapped in endless subsidies. In order to attract users, some group buying websites even sold gasoline cards with 10% off. This was questioned by the media: What is the difference between selling US dollars?

Cole, CEO of Goldman Sachs Securities, a highly renowned CEO of Wall Street, publicly pointed out:

[Although group buying websites have a very clear profit model, if a company can completely occupy the market and monopolize all users and merchants, then the future is naturally limitless.

But this is just an ideal, because anyone can enter this industry. Groupon, as the founder of this business model, can enter, Google and Facebook with traffic can enter, and as long as you want, Microsoft, Apple, Oracle, General Electric, Coca-Cola, Mobil Oil, and **** can enter, because as long as you have money, it's fine!

Then in this case, burning money can be endless and may take years until all participants are tired and give up, and other unstudy are unwilling to enter the venue again.

Then the last remaining person will be the winners in the end.

The question for investors now is, who will be the only winner in the end? Is it Groupon, which has already suffered heavy losses? Or Google or Facebook, which has huge traffic behind it?

No one knows, and this answer may take too long to reveal.]

This remark immediately caused a huge response on Nasdaq, as if dropping a bombshell.

Over the past few months, the endless burn of capital from multiple parties has made the venture capital behind it exhausted. They can't see the hope of victory. However, no one is willing to take this first step when the other party has not retreated.

Goldman Sachs' speech broke the fig leaf of the group buying model. This industry looks promising on the surface, but in fact it is full of crises because there is no final winner at all.

No group buying website can have loyal consumers. Everyone compares the products and goes to any of the coupons with cheaper ones. Once the subsidy is over and the coupons are gone, users will abandon them mercilessly.

What should I do if the group buying website and the capital behind it? Do I keep burning money? Is it so much that everyone else gives up? There is no end at all.

Even Google and Facebook, which own massive traffic, beat all other competitors. But who will give up?

Under such circumstances, capital began to withdraw from the group buying industry on a large scale, because no one would think that my capital was the strongest, and I could burn to the end and give up all other capitals.

Groupon is about to go public, and its ratings have been lowered by several major investment banks, while the listing applications of some other small group buying websites have been rejected.

So, a bunch of group buying websites were confused, venture capital refused to invest in them again, and the application for listing financing was rejected, and all channels for obtaining funds were cut off. How can I do this?

Internet companies, no matter in any country, develop the law of their development is to first spend money to obtain the market, and then make a profit. Without funds, it means that they cannot obtain the market, especially in the group buying industry. In the absence of subsidies, which user will use you?

What’s more serious is that during the promotion process, the checkout between group buying websites and merchants is not in real time, but is settled every two months. Many group buying websites have also used this amount of funds to expand.

If you could continue to obtain venture capital, you could also make up for it in the future. Even as long as you don’t go bankrupt, the money during the checkout cycle will be yours.

Now, there is a lot of money in group buying websites that can’t be taken out, so a deeper crisis broke out.

Some group buying websites closed and some insisted on it, but the consequences caused by the group that ran away were very serious, because this would cause other merchants to be more eager to get back their funds, and this became the last straw that killed countless group buying websites.

Even Groupon, Google, and Facebook are affected. Merchants will not trust any brand. If you have a big brand, you have to take the money back first.

Large companies can make up for this money, but a small number of merchants suffer losses due to group purchases, which will lead to a large number of merchants starting to resist this business model. In the future, if a group buying website that can survive, if you want to expand your group buying business, you will need to pay higher costs in cooperation with merchants.
Chapter completed!