Group buying website is gradually making money

Group purchase website will have to achieve profitability one after another? Recently, chairman and CEO of Wowo Mall, Xu Maodong revealed to the media that Wowo has achieved profits of millions, becoming the first group-purchase website to achieve a large-scale profit after the announcement of the full RMB 1 yuan profit in October last year. In recent days, there is also news that the US group will also announce profitability.

“At present, the gross profit margin of Wowo reaches 8% to 10%, and the window of going to the US is only open for the US capital market.” Xu Maodong told reporters. As of now, there are already full seats and Wowo announced profitability. The US delegation has stated that it will achieve profitability in the fourth quarter. However, due to previous credit issues such as group purchases, fake products, bankruptcy, and even running roads, the announcement of profitability has also been questioned by the market.

In this regard, the 800th founder of the regiment, Hu Wei said that from the data point of view, it is possible to achieve profitability. However, it is not easy to say whether it has continuity. He analyzed that the group buying websites throughout the past year was controlling costs and trying to increase gross profit. For example, the previous ones were ultra-low one-tenth, the industry average was three-fold, and the industry averaged four-fold this year. In addition, WoWo Mall was a normalized concession, generally around 50%, so that the company’s gross profit increased a lot. .

However, this hard-earned profit is likely to be a seasonal factor. Hu Hao analysis, the end of last year is the peak of group purchase, movie tickets and catering to buy a rush to a peak, if it is seasonally profitable, it does not have a landmark, but also need to observe the follow-up performance of group purchase companies.