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Community Group Buying Becomes New Blue Ocean, Industry Development Faces Both Opportunities and Challenges

Source: http://www.newsijie.com/chanye/hulianwang/jujiao/2018/1222/11246304.html

Community group buying is a new model for fresh food e-commerce sales channels. It achieves fresh food sales through online community operations and offline community interactions, mobilizing mobile network users' enthusiasm. After rapid development, China's community group buying industry has gradually improved its supply chain including suppliers, operation platforms, payment methods, logistics, and services, entering a stage of large-scale expansion.

According to reports, community group buying is built based on WeChat mini-program functions, with a large online user base and low customer acquisition costs. Social group buying forms communities into groups where consumption capacity and needs are similar, allowing for more precise product recommendations. Community group buying can better stimulate users' purchase desires and tap into potential consumption needs through group buying. Community group buying has huge development potential and is called another blue ocean in the fresh food industry after fresh food e-commerce.

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The key development areas for community group buying are third and fourth-tier cities. While China's first and second-tier cities are more economically developed, competition is also more intense. Third and fourth-tier cities have relatively milder competition and greater development space. With increasing WeChat penetration rates, growing acceptance of e-commerce, and consumption upgrading in third and fourth-tier cities, China's community group buying industry prefers to expand into these cities.

Currently, there are 13 community group buying platforms in China that have successfully obtained financing and entered the market, including startups like Niwoyou, Shixianghui, Dailuobo, and Shihuituan, as well as internet giants like Tencent, Pinduoduo, and Hema. Industry competition is becoming increasingly fierce. China's community group buying market is developing rapidly, with industry leaders yet to emerge, giving companies huge development space. However, due to incomplete rules, companies also face the crisis of poor operations and potential elimination from the market.

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Community group buying mainly targets relatively fixed community user groups, where word-of-mouth effects are extremely significant. Repeat purchases are an important means for platforms to maintain operations. Therefore, the quality, price-performance ratio of products sold by community group buying platforms, and the quality of services provided need to be relatively stable. Good user reputation will bring more user groups, while poor reputation will cause platform user traffic to quickly decline. Reputation is both an important driving force and obstacle for the development of the community group buying industry. Additionally, due to the acquaintance effect, once community group buying gains user recognition, user stickiness is relatively stable. First-mover companies have significant advantages, and late entrants will find it difficult to develop the market unless their products and services are more competitive.

The community group buying industry is developing rapidly but is still in its early stages. Industry operation models are still being explored and improved, with industry leaders yet to emerge. As companies continue to grow, it remains to be verified whether their supply chain, quality control, logistics, service, and operation management capabilities can cope with an increasingly larger market. Meanwhile, as internet giants with stronger capital, resources, and channel capabilities enter the market, competitive pressure on startups will increase, presenting a situation where the industry development shows both opportunities and challenges.

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APP Development

2019-01-15

Internet + Pig Farming: How Much Do You Know?

In recent years, with the support of national policies, internet pig farming has grown larger and larger, with entrepreneurs following one after another. The internet pig farming industry has injected new ideas and creativity, making mobile pig farming and real-life versions of Happy Farm possible.

The reason why internet pig farming entrepreneurs are flocking to this field is mainly because the internet can make pig farming more technological and sophisticated.

Using the internet as a tool, leveraging its high transparency and strong user experience characteristics, it connects physical farms with the public, creating an O2O ecological farming scenario of online adoption and offline breeding, allowing more people to participate in ecological agriculture construction. On one hand, it enables users to become pig farmers without leaving their homes, sharing in the benefits of ecological agriculture development. On the other hand, it establishes a product quality traceability service system, allowing users to obtain safe ecological pork products.

Here, I would like to mention a software called ZhuKangKang developed by MiXiaoDai for their clients.

ZhuKangKang APP + ERP Pig Farm Information Management System Platform is a comprehensive service platform for internet + pig farming industry data. The APP mainly includes industry news, pig price market information, pig farm merchant search, community chat and other functions. The ERP mainly provides an information management platform for pig farms, including pork traceability system, smart pig farm and other functions.

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APP Development

2018-11-16

Online English Training Market Shows Great Potential, Teaching Content Needs Urgent Reform

Source: www.newsijie.com

With the rapid development of internet technology, the education and training industry is undergoing transformation. In 2017, China's online education user base exceeded 140 million, with market transaction volume exceeding 240 billion yuan, showing explosive growth in the online education market. Due to the influence of exams, work, and overseas study, Chinese citizens' demand for English learning continues to grow, making online English training one of the important segments in the online education market.

According to the "2018-2020 China Online English Training Industry Comprehensive Market Research and Investment Analysis Report" released by New Think Industry Research Center, in China's online English training market, 41.2% of users participate in training for learning and exam needs; 33.4% of users participate for work needs; 20.4% for overseas study needs; 9.4% for immigration needs; and 4.6% for overseas travel needs. It can be seen that users participating in training for learning and exam needs account for a large proportion, and children are the main audience for online English training.

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In 2017, China's online English training market size reached 35.5 billion yuan, mainly concentrated in the children's English training field. By the end of 2017, China's K12 online English education user base reached 17.497 million, with a market penetration rate of 10.3%. It is expected that in 2018, China's K12 online English education user base will continue to expand, with the penetration rate reaching over 11.0%, and market size continuing to increase.

With huge market development potential, various capitals are optimistic about the online English training market, and investment and financing scale continues to expand. There are many types of enterprises operating online English training in China, mainly divided into four categories: large internet enterprises, traditional education institutions, established online education platforms, and startup companies. Traditional education institutions' course content is often a direct copy of offline courses, ignoring the combination of education and technology; while internet enterprises' course content is often diverse but of uneven quality.

Overall, China's online English training enterprises are only forcibly implanting missing parts based on their existing resources, with fixed teaching forms, and teaching quality has not truly achieved transformative breakthroughs. Therefore, in China's online English training market, although the overall scale continues to expand, about 70% of enterprises are in a loss-making state, 15% of enterprises face closure crisis, 10% of enterprises break even, and only 5% of enterprises can make profits. Against this background, China's online English training industry is facing a major reshuffle.

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Market demand drives industry development. China's online English training demand continues to grow, and with changing learning concepts, Chinese consumers' practical needs for English learning are growing rapidly, with 74.1% of consumers expecting to improve their oral English ability through online English learning. The growth of practical needs will push China's online English training industry to change existing teaching models and improve teacher quality, achieving true transformation in online education.

New Think industry analysts indicate that China's education industry still maintains strong growth momentum. Online education is a new training model, and with China's rapid growth in internet users and high network penetration rate, online training has become an important development branch of the education industry.

In the online English training market, children are the main audience, and the online children's English market size is gradually expanding, becoming one of the main driving forces for industry development. However, the quality of China's online English training is uneven, and many parents are not satisfied with the training results. Improving teacher quality and providing precise and effective course content are the key points for the future development of China's online English training industry.

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APP Development

2018-10-08