Wang Ye himself is almost forgotten that he is still the major shareholder of Joyful Times.

This time, Huarou informed him that Huya Times had a heavyweight live broadcast app to be launched. Wang Ye remembered that this was the advice he had given to Huya Times.

Transfer live broadcasts from computer to mobile.

With the popularity of smartphones and the promotion of 4g, people's entertainment has now moved from computers to mobile phones.

Since it was his own proposal, he naturally had to participate and see if this time, the first-hand Huya era can change the domestic live broadcast industry landscape.

There are indeed not many people who can watch this thing live broadcast at this time.

Because everyone thinks that this is a group of amateur artists who perform poor performances online and ask the audience to give them some small money.

Too l, too vulgar!

So now, the companies that really do live broadcasts are also the Joyful Times, and there are several small companies that are not very famous.

As for the "first year of live broadcast" a few years later, what is the "prosperity of live broadcasts", everyone can broadcast live broadcasts, but no one dares to think about it now.

Even the current leader in the live broadcast industry, Huya Times, even if it has been listed in the United States, its market value does not exceed one billion US dollars.

It cannot be compared with other Internet companies at all.

In the past two years, the most popular concept in the Internet field has been e-commerce, especially group buying in e-commerce, which is the time of great enthusiasm.

Websites such as Meituan and Dianping, which mainly engage in group buying, have set off a sensational "Hundred Groups War" this year. Behind this is that venture investors are very optimistic about the group buying model.

Traditional e-commerce has been monopolized by the three giants of Alibaba, Meigou.com and JD.com. It would be difficult for a new e-commerce platform to break out of the three of them to break out.

However, the imagination space in the field of e-commerce is too big, with a super huge market of absolutely trillions of dollars. Many people are unwilling to give up this, so they can only find a unique way and start thinking about group buying.

Don't, the group buying website has really taken away part of the market share from the three major e-commerce giants. For no other reason, the group buying website's stuff is too cheap.

This has a bit of a big impact on Alibaba and JD.com. Both companies are a little unable to sit still and have started group buying on their own websites. Of course, they are just trying the waters and have not really transformed.

However, group buying has little impact on Meigou.com, because the products sold online by Meigou are basically exclusively supplied!

Products from companies such as Estee Lauder, Flower Story, AmorePacific, Shiseido, and Magic Home Furnishing are all sold online only for the US Shopping Network.

If you want to buy these brands, you can either go online physical stores, go to major department stores or Watsons personal care chain stores, or you can buy them Meigou.com.

Therefore, group buying has little impact on Meigou.com.

...

In March this year, Wang Xing, who founded the School Network and Fanfu.com, took the lead in "cloning" the grupn website in China and founded "Meituan.com". In just over a month, he attracted 180,000 users.

New group buying websites have begun to sprout like mushrooms in China. At present, hundreds of websites such as Lashou.com, Manzuo.com, Aiyu.com, Wowo.com have been launched, and are nicknamed the "Hundred Group Battle" by netizens.

Lian Kaixin.com, Tencent and other old websites have also set their sights on this new profit model, hoping to convert the huge traffic of the website into real money in a timely manner.

Even Xu Jing couldn't sit still at this momentum, so she came here to ask Wang Ye's opinion, whether Meigou.com would also participate in it and start a group purchase.

But Wang Ye didn't like group buying at all, so he told Xu Jingdao directly.

"No need to worry about this, this model cannot last forever, because if you look at these group buying websites in another year, there are only a handful of people who can survive! Especially those who do physical group buying, they will definitely not be able to stick to it."

There are two types of group purchases, one is physical group purchase, and the other is service industry group purchase.

For example, clothes, catering, daily necessities, etc. are physical items.

Fitness cards, haircuts, bathing, movie tickets, etc. are group buying in the service industry.

Most of the websites that do group buying now do both, and only Meituan insists on group buying in the service industry.

The temptation of physical group buying is indeed huge, because it is "easy to do":

1. There are ready-made online merchants, and there is no need to educate and train merchants like the local service industry.

2. There are ready-made online buyers, and there is no need to cultivate buyers.

3. There is no need to spend a lot of effort to lay the ground or push the ground.

Since physical group purchases are easy to do, a large number of speculative funds want to take shortcuts to make big money.

However, physical group purchase is not a way to survive. The fundamental reason is that compared with service products, the marginal cost of physical products is relatively large, and in the short term, it is impossible to reduce the marginal cost as sales volume increases.

The so-called marginal cost is the cost that the merchant needs to pay by adding one more user (in other words, selling one more product).

Let’s give an example to compare the differences between physical products and service industry products. TV sets and movie tickets are typical physical products and service industry products respectively.

Selling an extra TV will cost at least a few hundred more, and it will not be reduced in the short term. Selling an extra movie ticket will increase the cost to the cinema almost equals zero (when the passenger flow is not full).

Products with a marginal cost of about zero also include tickets to tourist attractions, decoration of QQ spaces, and QQ privileges...

People buy group purchases for ultra-low discounts, but they don’t want to buy cheap prices. Only products with low marginal costs or even zero can guarantee service quality under major discounts. However, physical group purchases are obviously not possible, because the marginal cost is far higher than zero. A large discount must mean that the more you buy, the more you lose.

Therefore, physical group purchases are actually mostly false group purchases, which greatly reduces product quality while reducing the quality, and ultimately unsustainable.

If a business model cannot be business-friendly, but many people want to make money through this model, then a group of smart people with corrupt business ethics will surely emerge.

Therefore, Wang Ye asserted that it won’t take long to see these currently popular group buying websites will die!

This sentence was not only true to Xu Jing, but also when he chatted with Xiao Ma Ge.

In Pengcheng Club, Wang Ye and Xiao Ma Ge are considered to be in the Internet industry, so the two often discuss industry issues.

Today we talked about the recent "Hundred Groups War". Tencent has always wanted to enter the e-commerce industry, but has not started. So, Brother Xiaoma couldn't help but participate when he saw that the group buying website was so popular recently.

Of course, he did not do it himself, but invested only.
Chapter completed!