Group Buying Network -- Brand Fight In The Era Of Horse Race Enclosure

A few days ago, the disputes between the famous ice-cream enterprise DQ and the US group network were twists and turns. The US group has refunded tens of thousands of consumers and paid extra compensation for more than 500 thousand yuan, but the move has also been questioned as a "good faith" card for "cutting meat". After the domestic "thousand regiment" war entered the era of horse race enclosure, facing the competition with the big name merchants and facing the competition between peers, the first tier group buying network started a brand fight.

US group network DQ smoke origin

Traditional big names despise network channels

In February 28th, the US group sold more than 10000 "DQ Snow Queen's cash coupons". On the same day, DQ ice cream in East China. Franchisee Shanghai Shida Catering Management Co., Ltd. announced in the official website that it did not cooperate with any third parties in group buying activities. In March 2nd, the United States group showed the contract of the two sides; the next day, DQ responded that the contract on the official seal was false. Subsequently, the US group showed a prepaid 1 million yuan voucher for DQ, while DQ admitted that the advance payment was there.

In the three round of competition between the US group and the DQ, it is not yet clear which side it is based on. Before media reports, the signing of the contract with the US group is only the "DQ" ice snow queen in Shanghai, China's eastern region franchisee. The company is one of DQ's many channels in China. The low price agreement signed with the US group has undermined the interests of other DQ channel providers, so DQ has said it is invalid because of the fact that the contract is not true.

Behind the farce of "invalid group buying" is the lack of rational judgement by traditional merchants on Internet sales. Chen Shousong, an analyst with Analysys International online shopping, believes that the essence of the "group withdrawal crisis" between the US group network and DQ, or the previous "glutinous rice group" and "barbecue" barbecue, is that the traditional merchants have no knowledge of the avant-garde marketing mode of group buying. The low price of group buying has brought a large number of experience customers to merchants, but this kind of consumer growth has challenged the acceptance ability of traditional merchants, and sales promotion has become a losing proposition. Therefore, in the short time, large quantities of customers, some merchants chose to "give up".

　　 Difficulties of profit making for merchants

Group buying is not small profits but quick turnover.

What does group buying bring to traditional merchants? What kind of location is the group buying website? Behind the smoke of "thousand regiments" war, these basic concepts seem a bit vague. In the eyes of consumers, group buying can bring various inexpensive goods, services and consumption experience. What does group buying bring to merchants?

Chen Shousong told reporters that some of the traditional merchants will group buying positioning in small profits but quick turnover, that group buying is a new marketing promotion mode. Admittedly, the present group buying marketing mode seems to be a small profit but quick turnover. In fact, group buying is a marketing promotion. Group buying is not only to sell products and services in bulk, but also to attract a large number of customers to experience. Merchants provide a low price experience through group buying, and eventually make the group buying group a loyal consumer group. In the time of grabbing the market, many businessmen have paid heavily to advertise, even at the expense of making money. Group buying "small profits but quick turnover" is really a low cost and effective marketing promotion mode.

At the same time, Chen Shousong pointed out that the traditional merchants in the group buying is defined as small profits but quick turnover. At the same time, facing the swarm of consumers, the quality is inevitable. Therefore, the promotion of group buying has played a side effect. The reason is that merchants do not have a correct understanding of group buying.

　　 The era of horse race enclosure

Making tough plans for brand expansion

Group buying is the online shopping mode developed in recent two years, and the "thousand regiment" war is the current situation of group buying in China. Among the more than 2000 existing group buying networks, the first camp represented by the handover network, the US group network and the glutinous rice net has been gradually formed. Domestic group buying has been less than two years ago. At this stage, the scale has become the main criterion for judging the group buying network. This also led to the group buying network sacrificing interests, rapid expansion, horse racing enclosure.

At the beginning of this year, with the entry of Groupon, the US group buying founder, the domestic group buying market "exploded". Group buying network has stepped up publicity efforts, hoping to quickly improve their brand awareness. People in the industry pointed out that while other group buying websites had launched large ads, the US group network was playing a "good meat card" with the DQ "group buying invalid" dispute.

Whether the fact is true or not is not known yet, but when the dispute comes out, the US group network allows consumers to get a full refund of group purchase (29 yuan), while paying 21 yuan to each consumer's US network account. More than ten thousand people Group buying The size of the DQ coupons is calculated, and the refund and compensation of the US network is 500 thousand yuan. However, some people laughed and said, "this honest advertisement is worth playing."

Mr Chan pointed out that customers from different group buying networks should also be differentiated. For merchants, customers who can repeat consumption are the purpose of group buying marketing mode. There are still many services provided by group buying network to businesses, such as subdividing the market to facilitate user consumption analysis, mining user value and so on.

　　 micro-blog Hot comment

Zheng Fang

Netizens are super scattered: these new Internet companies struggling with their own hard work in the market, do not know how many times they are virtuous than those who monopolize everything and keep others talking about morality.

User newlive106: trust the US network, do not believe DQ. I used to use a bank card in Shanghai to buy one get one. DQ a shop told the machine that the machine had been struck by lightning. Feeling is an excuse.

Net friend Yu Zhiqiang Victor: this crisis public relations is well done. The US group decided to implement the "advance compensation" for the "DQ Snow Queen's cash coupon" group buying member.

Opposing side

Netizen Carol: 4 Cash coupons in DQ. A refund of 116 yuan is 200 yuan. In the account, there is only 84 yuan for compensation. Where does the 116 yuan go to? There is no bank card.

User NEW-Stefanie: making fake agreements is also more about the healthy growth of group buying industry? I'm afraid it's just a public relations tool. Consumers really think it's so generous.

User BanKa2011: group buying is beneficial to merchants, and benefits customers. However, improper handling will become a downgrade to merchants and deceive customers.