The hottest wowotuan low-key mergers and acquisiti

2022-08-22
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Wowotuan's low-key merger and acquisition of tangtuan group buying station competition is intense

recently, the national group buying station wowowotuan invested in the merger and acquisition of tangtuan, a local group buying station in Ningbo. Wowotuan maintained its control, and the original team of tangtuan continued to be retained. Wowotuan is the first station to enter the group buying market in China. Last month, it announced a high-profile first round of financing of $200million, which is the largest single financing in the group buying industry, and started to be listed in the United States at the same time. It is understood that this acquisition is the first venture capital obtained by Ningbo local group purchase station. At present, there are more than 20 group buying stations operating in Ningbo (more than 5000 nationwide), which also means that the competition in the originally competitive group buying market will become intense

low profile mergers and acquisitions

"wowowotuan just completed its holding of our company last month." Yesterday (June 13), tangtuan CEO Wang hengwu told that tangtuan has thus become the first local group buying station funded by venture capital companies. However, he did not disclose the amount of funds

tangtuan was founded in June last year, and Wang hengwu is one of the three founders of the station. During logging into tangtuan 1025, I found that there were three words "wowotuan" in front of "tangtuan" on the homepage of the station. Then log in to wowotuan Ningbo Station, and the words "tangtuan: wowowotuan's subordinate station" are also prominently displayed on the home page. "Now we are implementing a dual brand strategy, and tangtuan will not disappear." Wang hengwu told,

"previously, large group buying stations in China were full and public comments came to us to discuss the acquisition, but they have not been agreed, and the ideas and development goals of both sides are not very consistent." Wang hengwu told wowotuan that it had not only bought tangtuan, but also bought many local group buying stations all over the country, such as Xiamen flash group, Guangxi good Orchestra, Shanghai group shrimp, Changsha Group Kela and other local group buying stations, which had been won by wowowotuan. The purpose of such a large-scale acquisition is to land in the capital market. It is precisely because the development concepts of both sides are relatively consistent that they came together. "In fact, we also need a large group buying station as support." As for why wowotuan fell in love with tangtuan, Wang hengwu believed that it was because tangtuan was founded earlier in Ningbo, and it has always been ahead of the group purchase market in Ningbo, which recorded data

it is understood that at present, wowotuan has acquired more than 30 local group purchase stations on a large scale in China. At present, 75% of Wowo group is directly operated and 25% is cooperative management. As of May this year, the total number of wowotuan employees has reached 5000, and 1000 people are call center personnel. The scale of wowotuan's employees is the largest one at present

according to the analysis of insiders, the M & A of wowotuan is not to buy performance, but to seek the team. Its M & a logic is to first accept the second and third ranked teams in various places, so that the overall strength of wowotuan can squeeze into the top three, and then surround the big group buying stations such as handholds

hands of capital

insiders believe that mergers and acquisitions will become the norm in the group buying industry, and the reason why local group buying stations are merged by national group buying stations is because of the low efficiency of Vickers hardness test

wowotuan is one of the first stations to enter the group buying market in China. It was launched on March 15, 2010. At the end of last year, it received a capital injection from the mobile advertising service onepercent connect. Then, xumaodong, CEO of onepercent connect, became CEO of wowotuan. Last month, wowotuan announced a high-profile first round financing of $200million, which is the largest single financing in the group purchase industry, and launched its listing in the United States

"at present, the business model of group buying determines that every group buying station cannot be separated from the sales staff at the grass-roots level. Group buying stations have been expanding rapidly from last year to this year. The demand for talents is a major weakness in the current industry, and the competition of group buying stations will certainly involve the competition of personnel. At present, the market threshold of group buying industry is generally low, the quality of employees is not high, and the service level is messy, so recruiting relevant talents is indeed a problem." Zhang Haifeng, head of the outbound group of Ningbo local group buying station, believes that the phenomenon of poaching among domestic group buying enterprises is very common, because the group buying station faces a talent shortage behind its rapid development

mergers and acquisitions in the group buying industry may become normal.

it is understood that there are more than 20 group buying stations in normal operation in Ningbo at present, including local group buying stations such as Lexiang, going out group, radish group, soup group, etc. According to the latest statistical data of the group buying group, the total number of group buying stations in the country has reached 5126, and the number of group buying stations tends to be saturated. The competition among the major group buying stations has entered a white hot stage. The group buying stations have to make money at a loss, and the gross profit of the group buying industry has been greatly reduced. Some group buying stations have a huge amount of electronic compression testing machine, the enterprise standard of compression testing machine for rubber and plastic products industry formulated by Jinan Derek Instrument Co., Ltd The three standards of "electronic tightening tester" and "electronic tensile testing machine" have been officially implemented at a loss, which is difficult to support the huge team operation. "If you don't spend money, you can't make a good list. If you don't have popularity, you will lose money." Wang hengwu said that many group buying stations are now facing this embarrassment

it is understood that in the United States, Groupon and businesses can often achieve 50-50 profit sharing. In contrast, in China, the recognized level in the industry is 1:9. At present, the profit of domestic group purchase industry is even lower, less than 10%. At present, the overall profitability of group buying stations is getting lower and lower

"at present, we are still in the breakeven operation stage, and we can't talk about how much profit we have." Wang hengwu, head of tangtuan, said frankly. He said that in order to grab market share, some national group buying stations made a lot of lists at a loss and did not make any money. On the contrary, some small group buying stations in Ningbo also made some money. Moreover, the large group buying station after getting the venture capital seems to be throwing money at advertising regardless of cost. In Ningbo, advertisements of these stations can be seen everywhere in public places such as bus mobile TV, bus stops, office elevators, etc., which also exacerbated the losses of group purchase stations to a certain extent

"no matter how famous group buying is, it's useless, because it depends on landing. The key is to make a list." Zhang Haifeng, head of the local group buying station's outbound group, believes that this mode of group buying is very dependent on local characteristics. It is not possible for a national station to parachute a team to Ningbo. There is a process to get familiar with the Ningbo market. Therefore, even if national group buying stations rush to Ningbo, local group buying stations still have their own development space. It is understood that the local group buying stations in Ningbo, the outbound group and the radish group have successfully sniped at the national stations such as lashou, Manchu, Kaixin and meituan. Moreover, Ningbo local group buying stations have also begun to go out and open branches in other places. For example, the radish group established last year has opened branches in Hangzhou, Shaoxing, Wenzhou and other cities in the province this year

"before, it was easy to open a sub station, but now it is difficult to open it without hundreds of thousands of yuan." Industry insiders believe that for local group buying, the risk is also increasing. For example, the radish group has also entered the same misunderstanding as a national station in Zhejiang, and the risk is very high

"there have been several small local group purchases in Ningbo that lack working capital and have little resource advantages that have closed down or temporarily stopped the group purchase business. Some national group purchases may be closed due to poor management. The reshuffle of group purchase stations has begun this year." Insiders predict that the acquisition of tangtuan is just the beginning, and future mergers and alliances will occur frequently. ENet Silicon Valley Power

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