Online group purchase of building materials (1)

Buying seems to be a good idea, especially for buying expensive home furnishings. The online group is obviously the most efficient way. However, is it a good business for the group responsible for the site?

Text | CBN reporter Zhao Hui intern reporter He Xiaomei

Figure | CBN photo reporter Xiao Nan

Zhang Ming has been watching 30 minutes before Roca's bathroom booth. Behind her is Gui Zhipeng, a consultant who has been lobbying her for 30 minutes.

After the latter decided to press a number on the calculator, she finally decided to sign a bathroom sink order with Gui Zhipeng.

This is a large-scale construction product group buying meeting organized by Shanghai Tuanwang.com on August 30th with nearly 3,000 participants. Bathrooms, floors, tiles, cabinets

Cabinets... Although various household products manufacturers have negotiated the price with the group purchase network beforehand, and this group purchase price will be lower than that of B&Q, JSWB and other home stores, various sales consultants can't wait to pass their quotation to those who are slow. Visit the potential customers in the exhibition hall. In order to win more orders, suppliers do not care about giving more discounts in private.

Although merchants are now accepting the concept of online group buying, the collective bargaining of Chinese consumers who like to bargain in price has caused suppliers to feel scared. In 2005, a manager of Hongtao Tiles was shouted by netizens at the bargaining meeting. “Forget it! I didn’t do it.”

Leaving, group buying network continues to allow the second supplier to take over and accept netizens to bargain.

"We stand side by side with netizens." At that time, Tang Yanliang, the director of the group buying and purchasing division of Shanghai Group Buy.com, was satisfied with the feeling of petition for the people.

Including Deng Huajin, general manager of Shanghai Group Purchasing Network, these were the first to start from the bubble decoration forum, because of their own grumble, and eventually resigned.

Non-professionals in the industry feel that they are doing an infinitely bright career.

In the fall of 2005, real estate developer Jingyu Home opened a call from general manager Deng Huajin, hoping to make a real estate purchase.

The 9:30 appointment was agreed. Deng Huajin had already waited until the time of the site preparation at around 8 o'clock. 500 people sign up for the group purchase and eventually arrive at 200

Many people make Deng Hua Jin feel a sense of accomplishment.

However, the developers saw too many people and they soon changed their minds. They just wanted to send a few gifts and quickly sent them away.

"I was fooled." Deng Hua Jin is very sorry. This failure allowed Deng Huajin to move all of his business focus to his home. Until today, the buying of building materials is still the core business of Shanghai Group. Users can apply online to become members to participate in group purchases. If they go directly to the website service center, they can still join the club on the spot to enjoy the group purchase price.

Low price. Shanghai Group buys itself as its biggest advantage.

Tang Liang, a bargain master, said that the cabinet industry had a 50% profit margin three years ago. They once had about 3 cabinet manufacturers in a group purchase, actually only to

Two homes: Faraday and Xiaojun. "We did not think that the cabinet shopper was the main channel. At that time, I would bring him up to 15 orders per month."

At the time, the Faraday cabinets were being squeezed by the first-line brands Blum and Yadir. The general manager Wu Hua frowned and replaced the cabinet handles.

Drawer, she used this way to spell out a new cabinet model, the price of open out does not affect the market price of its mainstream cabinet - 1600 yuan / square meter. Wu Hua's initial psychological price was 1,280 yuan, but the bargaining teacher Tang Liang cut the price to 880 yuan. "She shivered nervously," Tang Liang said. Wu Hua ordered the netizens to be ordered and pay 300 yuan each. After 3 hours, Wu Hua counted 103 orders. This exceeds her single store monthly sales.

This is also the premise of Shanghai Group buy network to make money. Their profits come from three parts: online store rentals, promotional advertising fees, and business meeting fees. among them

Nearly half of the company’s membership fees are accounted for. Unlike the early worry-free group purchase network (the predecessor of the fence network), Shanghai Group Buy Network does not draw rebates for every single business, which means that group purchase networks need to fight for a large number of suppliers to pay membership fees.

“The large number is a big bargaining chip.” Zheng Xiaojun, general manager of Investment Bank of Beijing University Management Consulting Co., Ltd., believes that whether group orders and suppliers can negotiate whether or not large orders can be the key to attracting suppliers. Deng Huajin also admitted that compared with the fees used for channel promotion, the contribution paid by suppliers is a “very small number”.

The fence network, which was once famous for group buying, is nowadays unwilling to mention group purchase. “We are in transition.” Xu Xiangtao, Deputy General Manager of Fence Network

Lu no choice.

"The so-called group purchase is an immature transitional stage, or a way to get together when the strength is not enough," Xu Xiangtao once said.

Publicly stated, “Because merchants do not believe that you have so many orders, they are unwilling to give you this price, and they are not willing to give you better services. You only need to get together, but in reality this is an inefficient process. You have this quantity and are willing to give you the price directly. Why do you have to do it?” “Group purchase is to get the order first, and then go to contact the supplier. The traditional order is to apply for the goods with the supplier first, and then receive the order.” Zheng Xiaojun said.

According to the official fence network information, in 2006, the fence net transaction amount is 280 million yuan. There are currently 180 0754 registered members and more than 20 consumer members

Million. Since 2007, the fence began to use group buying activities as a promotional tool.

Xu Xiangtao believes that to do business, it is necessary to make money from the sales rebate of suppliers.

At present, the average rebate rate of the fence has increased from 5% five years ago to 7% to 8%.

There is now a training room in the fenced office building. The main target is the supplier. “They sometimes don’t understand what e-commerce is.” Fence Network

Fu Hao, manager of public relations department, said.

"That's a sword-flicking bias," said Zheng Xiaojun, who has questioned a fence network that is more closely linked to suppliers. "The core of this business is to own consumers, not suppliers." He fears that the use of rebate fences lacks neutrality.

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