Original launch | goldhorne (id:f-jinjiao)
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The ten thieves ran away。
On 7 january, several suppliers who were in arrears arrived at the changsha office building and found that the building was empty. The same is true of beijing's 10th regiment, which has a large office area full of miscellaneous items, with only a few people sitting on mobile phones and chatting。
The security services receive more than a dozen door-to-door providers every day, with millions of arrears and tens of thousands less. According to the security guard, the tenth regiment owed hundreds of thousands of dollars to his security company。
The collapse is a sign。
On 1 august 2021, chen zheng, founder of the ten regiment, published an internal open letter, " a self-innovation of focus users' long-term values " , stating that “a radical reform will be undertaken in a partially inefficient business area”。
As a result of the reform, a large number of sites were shut down by the ten missions throughout the country, ranging from covering more than 2,000 districts and municipalities to retreating to five cities. The storm of severe lay-offs continues, with tens of thousands of former employees, less than 1,000 by december 2021。
As one of the community groups that buys one of the “old three” groups, the group buys only a microcosm of the winter. After the growth dividends of the epidemic, this golden track, once referred to as the “last low ground” of the internet, has now been lost。
It will be recalled that, throughout 2021, community groups have burned down at least $100 billion, but hot money has not kept the industry alive — more than half of the community groups have left。
The tide's down
The community buys first-hand players, half of them in 2021。
On 6 july, at 3 a. M., the old community group bought ho peng woo, founder of the same life, and issued an open letter stating that the company faced the most difficult times and that the community group buying industry had changed from an era of “innovation, implementation” to one of “capitalization, subsidy”。
Only one day after this letter of farewell, the same parent company, suzhou orange technology limited, issued a communiqué stating that the company had decided to file for bankruptcy because of its bad business. – according to the explanation of the same life cycle, the reason for bankruptcy is the concentration of funds from partners, the breakdown of the corporate financial chain and the absence of room for transformation。
In other words, the money was burning, and it fell, and they didn't want to。
Community groups buy and burn, as seen from the beginning of the industry. In 2018, the community group bought the first money-burning war, which resulted in more than $4 billion in “achievements” over a six-month period, followed by 2019 and 2020, the total sector-wide financing went up at $8. 34 billion and $14. 98 billion, respectively。
After a massive influx of funds, all became “ammunition” for the platform to fight the ground. The way in which the money is burned is to gather the users, to rob the land, to rob the goods:
To get enough users to join, the buy-in platform needs to be constantly subsidized, put in place a second kill, make a profit, order hundreds of thousands and millions of dollars, and burn large amounts of money easily
In the case of heads of mission, the platforms simply raise the income of the heads of mission through commission on orders, new awards and individual awards, with the lowest outreach channels
It's easier to rob the source, to collect the food at a price, to pick one, to spread the money to the roots of the industrial chain and to fight for the lifeline of the fellow man。
Open letter from ho peng woo
In the light of past experience with out-sale platforms, shared bicycles, chargers, and cyberbuses, this model quickly produces a few giants through capital, which then annex small and medium platforms, create some sort of relatively stable cut-off scene, and then earn back the money that has been spilled from consumers who have no more choice。
Unfortunately, things didn't happen as they were supposed to。
Shortly after leaving with $300 million in debt, another community group bought a head-eating enterprise to cancel 15 subsidiaries under the banners of chengdu, ningbo, jiangxi, tsui, fatou, nanjing, taizhou, taezhou, hangzhou, xi'an and others, and the original team withdrew。
And while the giants of the community buying heat into the scenes of the epidemic, the kyoto-backed jigsaw puzzle and the drop-in orange-heart preference, almost simultaneously began to dismantle the lines of operations, shut off the grid and adopt a tight attitude。
Whether you want to admit it or not, the tide has retreated。
Outbreak community procurement
At the height of the tide, everyone thought it would be a sea of wealth。
The new coronary epidemic has changed consumer habits and access to information, and has allowed community buy-in to grow by 2020. According to the china community group purchase market data report 2020, the size of the market for community group purchases was 75 billion yuan, an increase of 120. 58 per cent over the same year。
Under the wave of booming growth, enterprises such as dripping, suning, dodo and ali baba have successively focused on community group purchases as an outreach operation, with news of self-construction, acquisition and investment coming up and even shouting slogans of “no-ceiling inputs”, much of the luxury of never-ending buildings. The inflow of excessive funds has led to increased competition for community group purchases and increased the impact on the real economy。
Changsha's “house of war” is a microcosm of this confusion。
On 28 october 2020, at more than 10 p. M., the supplier wang sung anxiously shouted in the group of the changsams, “proceding out to run the work and see what our supplier will do next”
At the time, the group had been in existence for less than an hour, with only suppliers and the best-selected procurement staff, and suppliers were fighting to get in the car, even if they were under pressure。
However, they took a step further, as long before the previous day, the outreach staff of the “buy more” had dropped off the sand, without any recruitment process, and had come directly from jiangxi to the bd, where they had begun to compete rapidly for markets, and earlier, the “orange heart choice” under the drop-in flag had begun to recruit on a massive scale, with hundreds of people rushing into the interview site every day。
Image source: ocsa
The real economy of changsha has been hit hard in the immediate aftermath of the simultaneous offensive of orange heart, beauty, and many food purchases。
All the way to long sand, which is no longer than two kilometres long on the street, opens a small procedure for buying by any of the community groups, and can see their own points of view. Whether it be convenience stores, printing shops, flower shops, hotels, restaurants, barbershops, etc., they are subordinates to corporations such as corporats, drops, lots and lots of popular selections. The shopkeepers, who are heads of multiple platforms, are responsible for distributing the platform commodities to users。
In hunan, the local chain of convenience store brands shin jia yi placed a poster of scavenger coupons at the store, and the nearby mii jia convenience store directly placed the concession in front of the door to attract users。
The market for vegetables is depressed, and the stallkeepers are sitting on their stalls。
Madness kills。
On 22 december 2020, the general directorate of markets and commerce, in conjunction with the ministry of commerce, convened an administrative steering committee to regulate the purchase order of community groups, which proposed a new “9-no” regulation, and called on community groups to purchase the first gun against monopolies。
Capital disposals
The demise of community groups cannot be blamed solely on capital。
The large number of fresh and high-frequency commodities behind the grouping model is essentially a competition for the flow of food and food, as well as for the market for vegetables and small shops, and is destined to be the focus of regulation. After that, the official media made numerous statements to the effect that the internet giants should not focus solely on the basket, and that the municipal inspectorates throughout the country were becoming more and more stringent with regard to dumping and monopolization of the assembly platforms。
The war on subsidies, which could not be seen at the end of the spectrum, had only accelerated the decline of the industry。
Returning to the basics of community purchases, low-cost strategies and headship systems are not enough to make the business “stable and profitable”。
Subsidy to lower prices has led to uneven pricing and even led to the movement of suppliers from the head of the organization, with a reverse supply-demand relationship. On the other hand, the model of community group purchase with the head of the group as the core of the flow can also result in the community group buying and selling processes relying too heavily on the head of the group, with customers and orders being placed in the hands of the head of the cell。
In the end, this track has not really made “changes” in the way of consumption, but has only satisfied the greed of capital for flows through monopoly upstream and downstream。
And the staff and suppliers of these platforms are just screws that can be abandoned at any time under a huge system。
More than 6,000 employees faced lay-offs after their joint lives went bankrupt, and the company offered n as compensation, i. E. Its length of service multiplied by the average salary for the 12 months prior to separation。
Separation agreements received by staff members travelling with them
According to internal staff members on the same trip, the timing of the payment was not indicated in the notification, and the time of payment was indicated in the agreement between the company and the supplier and the driver. The notice, which the staff members had, “is a piece of paper, rather than a supplier and driver”
However, thousands of employees who had been laid off by the ten regiment, some of whom were still working in the morning, were informed in the afternoon that they had not received an entry contract or an award of n+1, and that they had been asked to sign a letter of resignation to leave voluntarily and to leave their homes in the morning。
A game of capital shattered the dreams of countless people。
