Group shopping has been disorderly, chaotic and blind since the day it was born.
Small profits but quick turnover, and thrifty housekeeping seem to naturally fit in with the frugal nature of the Chinese people that is deeply rooted in their bones and souls.
Countless entrepreneurs, including Wang Xing, have seen new hope from the success of group buying businesses such as Gaopeng.com and Pinxixi.
However, quite a number of people have been misled by Pinxixi, and they do not consider that Qingyun Group's terrifying penetration rate in the campus market is the key to its success in the first place.
As the saying goes, those who learn from me will live, and those who imitate me will die!
A large number of entrepreneurs tried to take shortcuts and compete with Pinxixi for the fat piece of campus market, but the result was naturally that they got what they wanted.
But they also used their bloody tragic endings to sound the alarm for those who came after them, telling them that this path would not work, such as Qiandu and Ali, and they quickly learned lessons from it.
Faced with the rapidly developing group-buying market, there have always been two voices within Qiandu. One is the wait-and-see neutral faction, mainly composed of the advertising business department.
Their reason is simple. The low threshold, low risk and high returns of the group buying business are bound to attract participation from all over the country. Qiandu does not have to do anything and can make a fortune from advertising alone.
Let’s take Pinxixi group buying website as an example.
In August, it contributed millions of RMB in advertising fees by driving clicks on the navigation of Qiandu and hao123.
By September, the number had exceeded 10 million, and it grew rapidly in October and November.
Not only that, group buying websites have sprung up like mushrooms after a rain, and the more powerful ones among them are waving their money in their hands.
They flock to Internet enterprises and advertising media companies that control traffic, just to gain a prominent exposure position, and they are fanatically pursuing traffic.
The leading Internet companies have never felt so comfortable. Their originally excessive traffic has become in short supply overnight with the rise of group buying business?
When it comes to advertising business, Qiandu is professional.
They believe that this is just the beginning, and the subsequent explosion in the group buying market will greatly stimulate people's enthusiasm and attract more people and capital to enter this market.
At the beginning, the market is not yet saturated, and the first group buying websites to take the plunge will surely reap the first wave of market dividends, which in turn will stimulate further prosperity in the market.
In fact, it is similar to what Qiandu judged. Except for a few companies that were led astray by Pinxixi, most of the rest made a lot of money in the first month.
Starting a group and being a group leader is something that anyone can do. If you don’t have enough money, you can hire an outsourcing team for tens of thousands of dollars to build an extremely simple group buying website in a few days.
Daily maintenance, website operation, and product listing all require only a few people and hundreds of thousands of yuan to completely build the shelf, and then just wait to collect money.
No consumers?
If it can’t beat Pinxixi offline, who would be afraid of it online?
As long as they choose the right types of goods and the prices are attractive enough, they will have no worries about not having customers. They are not like Pinduoduo, which needs to hire thousands of employees and incur huge costs.
I don’t expect to learn from Pinxixi and create group purchases of thousands or tens of thousands of people from the beginning.
For quite a few entrepreneurs.
In the designated area, by hiring temporary workers to hand out flyers on the streets, in buildings and in commercial areas, we affected hundreds and thousands of people in the surrounding area. In the end, fifty-one hundred people participated, which is a remarkable achievement.
Not to mention those who have a little money, they can post a link for advertising on the Internet, and with tens of thousands of dollars they can attract hundreds or thousands of users to join the group, which is a huge profit no matter how you look at it.
No matter how well prepared Pinxixi is and how deep its penetration rate on campus is, it can only dominate offline.
Among all the online traffic entrances, including the BAT three and Google, the three major portals, it does not have its own base, not to mention a large number of second-tier manufacturers such as 360.
Is there any more direct promotion method than pop-up ads that directly jump to the group purchase page?
Therefore, there is nothing wrong with the judgment of Qiandu’s advertising business department. As competition intensifies, the value of Internet traffic entrances will become more prominent.
They are serious about bidding advertising. They will raise prices when there is competition. Isn’t it great to make money without doing anything?
However, the group's strategic development department came to the opposite conclusion!
This is a once-in-a-lifetime opportunity to get involved in the e-commerce field!
Qiandu has suffered losses in the e-commerce industry. As early as a few years ago, it invested huge sums of money in an attempt to get a piece of the pie across industries. Unfortunately, the environment at that time was also chaotic.
Qiandukong has the advantage of traffic, but it cannot directly convert it into orders because consumers prefer leading e-commerce companies. This is also an industry where economies of scale play a decisive role.
But now it's completely different.
The group's top management has already received word that their biggest competitor, Google, is about to be driven out of the search market for some special reasons.
Once the news is confirmed.
Qiandu is bound to be the only dominant player, but are they satisfied with just this?
If the group can open up a new track outside of the search and navigation business, its dual-headed dragon strategy will surely be welcomed by the capital market.
Group buying is the best opportunity for Qiandu to transform, without a doubt.
As expected, when their analysis report was submitted to the board of directors, it caused a sensation and almost all directors voted in favor without hesitation.
Because in its report of tens of thousands of words, there is one decisive factor: the conversion rate of search navigation to group buying business!
Ridiculously high!
After the strategy was determined, Qiandu Chairman Li Yanhong took charge personally and the entire group began to shift rapidly, with the search engine technology department being the first to take action.
On the first day that Qiandu Group Buying went online, the first displayed result for group buying searches quietly switched from Pinxixi Group Buying to Qiandu Group Buying.
In the group buying section of hao123's website navigation, although Pinxixi group buying still occupies the first position, I believe that with Qiandu's consistent style, this situation will soon change.
Qiandu is in action!
Ali is also not slow in its moves. The Ali Group itself also has a part of the search business, which is the original Yahoo website.
Although its market share is not large, it should not be underestimated due to the dual traffic from Alipay Insurance and Taotao.
Not only that, Ali also sent people to contact friendly companies such as Qiandu and Google, and offered them advertising and traffic cooperation gift packages.
Than capital investment?
Jack Ma has never touched money and has no concept of money.
So Ahri doesn’t care about money, as long as it’s spent worthily!
……
The competitor's actions were quickly noticed by Pin Xixi and quickly sent to Sun Tongyu's office, but he had no time to deal with them now.
Because the offline campus market is constantly suffering from the impact from small and medium-sized group buying websites, Sun Tongyu sees very clearly that this is the core base of Pinxixi.
Previously at Yanjing, when the campus market was impacted by Meituan.com, Li Zehua personally took charge of the counterattack, mobilizing all the resources available at the time to annihilate the opponent with lightning speed.
But now, hundreds of competitors like Meituan are rushing towards it. How should Pinxixi face it?
Not all group buying website entrepreneurs are wealthy enough to spend money on advertising and buying traffic.
Some of them even had to scrape together their start-up capital!
The entrepreneurial model is shockingly simple. Just find one or two suitable products, find someone to write code, make a simple website, put up a price, and rush it online.
It seems that in this market, you can pick up money just by reaching out.
As expected, it flopped. There was no advertising, no flyers, and no natural audience for the product. Who would have known that there were discounts here?
The network of contacts around us is limited, and sooner or later it will be exhausted. Who would be so kind as to ask classmates, neighbors and friends to send links every day and ask them to buy things?
Even if you don’t have money for advertising, you can’t just close down the business.
Tens of thousands of dollars is also an investment!
It is said that a living person cannot be suffocated to death by urine. This approach is a dead end, so when you are desperate, you must think of new ways.
Leaving aside the methods used by group-buying websites in small cities, the more flexible ones in large and medium-sized cities have all turned their attention to densely populated areas.
Is there any larger natural audience for group buying than campuses, commercial office buildings, and areas where migrant populations gather?
When they rushed over in groups and tried to get a piece of the pie, even Pinduoduo, which had a 10- to 100-fold advantage in numbers, couldn't hold back for a while...
"It's all chaos, there's competition everywhere, there's bloodshed everywhere, but the group headquarters is the only one that doesn't know the exact situation right now. We don't even know where the enemy is or how many people there are.
Their business strategies, promotional methods, and shipping methods are all unclear. Yes, there are too many, too diverse, and too chaotic. They are completely out of control.
The promotion department reported that people had contacted the mid- to high-end restaurants around the school, and they even took advantage of a group purchase of peanuts.
The marketing department reports that small factories around Jiangsu, Zhejiang and Shanghai receive people coming to contact them for cooperation almost every day. These include not only outsiders but also business teams that have left these factories.
Yes, competing companies are poaching people everywhere. Not only do the business teams of other competitors have a high turnover rate, but many people have also jumped over to Pinxixi’s team.
The salaries they offer are even higher than those of the department’s middle-level managers, and the more capable they are, the more likely they are to be poached.
I can’t control it. I can’t control it at all!
They have to be promoted step by step within the group, but if they change jobs, they can easily jump to a high position and enjoy shares.
They make money out of nothing, using their connections and resources to successfully start a group buying business. The net profit from a group buying business can be as low as a few thousand or as high as tens of thousands. If you divide the profits proportionally, you can earn in a week what you could have earned in a month or even several months in the past. The temptation is too great.”
Sun Tongyu was in a state of panic. Anyone in his position would have their eyes on a few leading companies.
At the group's internal meetings and Qingyun's strategic planning meetings, the vast majority of people held this view, even though Chairman Li Zehua repeatedly emphasized the need to look downward.
Group buying is a real national carnival. Only those who are truly courageous, determined and willing to risk their lives can break through in the first place.
However, the deep-rooted thinking has been formed, and almost everyone insists that Ali, Baidu, Google, Tencent and other companies that are spending money to subsidize the food delivery industry.
It is the group’s biggest competitor!
Especially after he and Li Zehua had a "conflict", Tengda's attitude became ambiguous. It wanted to take the opportunity to lower the price, but also wanted to stop and see which way the wind was blowing.
Ahri was really tricked. There was no time to discuss the specific circumstances now. Sun Tongyu just wanted to urge Li Zehua to return from Hong Kong.
At critical moments, this charismatic chairman has to be in charge personally to prevent the people below from falling into chaos!
Management will not work in isolation.
It is said that everything has its pros and cons. At this critical juncture, he played a double act, fooling Ali while making the middle and lower classes at a loss.
If there is a conflict of principle between the chairman and the executive president, is there any need to think about it?
I will definitely listen to the chairman!
"It will take at least three to five days to deal with the Xiangjiang issue. Now is the time to test the combat effectiveness of the entire Pinxixi group-buying project team."
Li Zehua said calmly, "Old Sun! I have very high expectations for you. I will give you shares and benefits if you want them.
I will even make fun of myself to make your plan go smoothly. What's the point of you complaining to me at this time? Just go for it if you have any idea. I will definitely support you from behind. "
How could Sun Tongyu be without a solution? He simply hit a wall and subconsciously sought support from a god who always kept his word and delivered on his promises.
Who made Li Zehua make such a confident assertion at the strategic decision-making meeting? Now all of it has come true, and almost every key judgment he made before was correct.
This has led to a fixed mindset among the entire group: if there is a problem that cannot be solved, go to the chairman, and he will definitely have a hundred ways to solve it.
Sun Tongyu had not been here for long, but he was also affected by this trend of thought. He was prompted by Li Zehua's subtle hint and reacted.
If you ask the boss for everything, what should he do?
So we reported the plan that had just been discussed in the meeting.
"Very good, give full play to the subjective initiative of the people below, take the initiative to attack, don't be passive on the defensive.
I completely agree with your proposal that the excellent business team should take the initiative to start a group, use a certain amount of resources for promotion, and generate a certain amount of performance, and then give additional rewards for the excess. "
Li Zehua listened quietly and praised: "People-oriented is the foundation of long-term business operations. These group buying companies are short-sighted and will sooner or later reach a dead end.
But it is undeniable that huge short-term profits can impress most ordinary people. I find it hard to believe that there are a few people who would refuse the immediate benefits and insist on staying in the company.
Just go for it!
Be bolder and more ruthless. Don't be bound by the existing framework. Step out of your comfort zone decisively, direct the fire of war towards your competitors, and burn them to death first.
It doesn’t matter whether they follow or not.
What’s important is that Pinxixi will always be invincible.”
Sun Tongyu played a big game. The result of their discussion, the three strategies of upper, middle and lower were all targeted strategies proposed based on the difficulties faced by the group.
The best strategy is the easiest to implement, has the best results, and produces the greatest benefits.
But there was too much opposition within the group.
He was almost universally criticized at the group's strategic planning meetings.
Are you kidding me?
The group is now far ahead in the competition. It is not being beaten back step by step and has no power to fight back!
Those group-buying websites that have flocked in have no idea how many tens of thousands of people they have in total, and they have created a lot of noise on campuses and in commercial districts.
Even if they combine the two, they still can’t get as many participants in an event as Pinxixi. Group buying by tens of thousands of people is only a fantasy for other companies, but Pinxixi has tens of millions of college students.
Tens of thousands of people join the group, just a daily operation!
Their goal is to attract group purchases involving hundreds of thousands or even millions of people!
For example, the smartphone that the group is going to release next month!
All the resources of the group have been mobilized, and more than 100,000 employees are on high alert. By then, they will surely create the most terrifying commercial promotion case in the history of Chinese business.
New machine released, sales volume in the millions.
This is of course just publicity, but the preliminary warm-up work has already begun, and the feedback from the questionnaire is very ideal. It is a machine with a full metal texture (considering the poor heat dissipation, it is actually a plastic imitation metal craft).
A keyboard-less full-screen smartphone with mainstream configuration, exquisite appearance and reasonable price, it also provides a variety of personalized options and Qingyun Group's world-leading sales channels.
It’s hard not to be popular!
Under such favorable circumstances, Sun Tongyu's team went against the world's will and actually proposed a so-called terminal solution?
It sounds good, but once it is released, a large number of competitors in the group buying market will die, and even the giants may not be able to survive.
Expectations are very high and everyone is quite interested.
When I heard it, I almost exploded.
So this is taking the company's interests and giving them to grassroots employees?
What kind of group buying website is independent of Pinxixi and made into a separate website pxx, pxxtg, tgdiankanmu, no matter whether it is Pinxixi or group buying.
Doing so is tantamount to causing a separation. It is clear that Sun Tongyu is becoming arrogant and wants to take advantage of the opportunity to control the board of directors and threaten the strategic decision-making committee.
Exaggerating the strength of competitors.
Degrade the group's overall competitiveness.
Not to mention that we are still in a period of competitive advantage, even if we lag behind our competitors, no one would agree.
Finally, after Li Zehua explained in person during the video conference, everyone's objections were suppressed.
Immediately afterwards, a plan for the transformation of Pinxixi's group buying business began to be passed down layer by layer.
Almost all the management looked at the document in amazement, as if they couldn’t believe it!
The core is: all business teams, after passing the company's assessment and approval, can use all the resources at hand to open sub-channels on the Pinxixi group buying network and operate independently.
Benefit sharing!
To put it simply, everyone is the owner of group buying, so what are you waiting for?
The group provides resources and traffic to encourage everyone to step out of their comfort zone. Whether you have ideas or have the right connections, you can take action.
As long as the group does not currently have cooperation with any enterprise, individual or product, they can all be packaged and brought in to participate in this plan.
Even the group buying website startup teams that already exist on the market, as emphasized in this document, can also participate in the plan.
What's the point of going it alone?
Let’s drink and eat meat with Pinxixi!
The group buying website is so capricious. Anyone can come. We only charge 30% of the profit sharing, and the price of traffic support is calculated separately.
In short, the group’s purpose is clear. Group buying projects are carried out simultaneously on separate websites, which can bring out all the potential with greater strength.
Li Zehua positioned it as equivalent to Taotao and Tmall, supporting each other at the same time. Doing so not only retains the core business team but also ensures stability.
It is also possible to build a group buying platform from scratch, separate all sub-projects into separate group buying divisions, and recruit the right group buying website when it comes across one.
The key is that traffic is more concentrated, customers have more choices, group purchase turnover is faster, and there are fewer competitors. The biggest advantage of becoming independent is that you can raise funds independently!
Group buying, after all, is a battle for traffic entrances and a money-burning war!
Doesn’t Goldman Sachs want to acquire a stake?
Come on, let’s happily burn money together to create a future. We can even cash out by listing in the United States before Gaopeng.com!
Building a platform and sharing the benefits is Li Zehua's ultimate goal! (End of this chapter)