[Explanation] Community group buying is not a new thing, and the epidemic has allowed this business behavior to reappear in consumers' mobile phones.
On October 17th, in the border city of Urumqi, Huang Jijing, one of the early participants in community group buying, said frankly that community group buying has low profits, many difficulties, and fierce market competition. Many businesses are still seizing business opportunities in limited space.
[Concurrent] Huang Jijing, head of a network technology company in Xinjiang
I think the overall sales channel will still rise.
At present, the scale of Xinjiang should be about 800 million to 1 billion. I think it will rise to about 1.5 billion, and the entire market will become larger and larger.
[Explanation] Huang Jijing introduced that the fierce competition in community group buying seems to be detrimental to merchants, but it helps practitioners provide consumers with better services and better products, and consumers benefit more.
Community group buying is a new retail model where the community is the node, where the "group leader" organizes sales in the WeChat group, and the company provides supply chain, logistics warehousing and after-sales support.
The group-buying platform adopts the pre-sale model, and the company has effectively reduced storage and operating costs with fixed sales.
Wei Xueyang, who was an offline flower shop earlier, participated in the flower sales community group buying platform in October 2019. After a full year of operation, the team has harvested more than 1,000 community markets in Urumqi, with monthly sales of more than 500,000 yuan.
[Concurrent] Wei Xueyang, person in charge of a community group buying platform in Urumqi
Because there are so many flower shops in the whole city, it is impossible for you to create more turnover.
For example, there are 5000 communities in Urumqi, and all these 5000 communities are blank, which can achieve a larger market.
[Explanation] The person in charge of an online and offline community group buying platform analyzed that the current Urumqi market community group buying has a large scale, mainly based on comprehensive platforms, and each has a certain scale of sales and volume.
[Concurrent] Li Yuanjie, person in charge of a community group buying platform in Urumqi
It (community group buying) has requirements for logistics and distribution, including warehousing and sorting, which are actually much higher than online operation requirements, and the energy and funds it has to invest in it also account for the vast majority.
[Explanation] According to iiMedia Consulting's "Special Research Report on China's Community Group Buying Industry in the First Half of 2020", the community group buying market will increase to 72 billion yuan in 2020, and the data is expected to reach 100 billion yuan by 2022.
Zhao Yamin Cheng Lei reports from Urumqi, Xinjiang
Editor in charge: [Li Ji]