The Demise of China’s Hottest Online Shopping Craze

Time Epidemic, a Unique Online shopping has become one of the most popular trends in China’s technology industry. It is said “Bought community groups“It allowed customers to save money on everything from apple to iPhone with their friends and families together. The model, which was seen with a groan, was especially popular for grocery but

Late last month, Chinese food distribution giant Mituan announced that it was suddenly shutting it down Bought the grocery group All operations except four provinces, surprise many customers and even the supplier.

In March, Alibaba’s grocery group-arms closed along with Tawkai. ZingSeng Euxuan, a nationwide industry, is now working in only three provinces, from 5 to below today. PinduduoBone BeforeThe only major internet platform that still proposes to buy grocery groups across the country.

The selling grocery is not a business with high margin, and the cost of some small shipping like some potatoes cannot create financial sense for any technology company. The promise of buying groups is to order pooling by dozen and reaching them all in one place can only be profitable enough.

The industry began formed in the late 20’s, but it really increased when the Covid -1 epidemic hit. Since Chinese cities went to interim lockdown for three years, it was often impossible to go to the grocery store, and technology companies occupied the opportunity to digitize and exclude more daily activities. Although the families of the largest and most advanced cities can afford to supply grocery directly to their homes, people in the less advanced regions found the option to buy grocery in groups.

In the early 2020s, the Community Group-Ken was seen as an innovative solution to the latest mile distribution challenges associated with grocery supplies. But when the epidemic lockdown ended and the Chinese companies, including Mitwan, extended their courier’s dense networks, they started delivery in less than 30 minutes, eliminating the need to assemble a group with their neighbors.

“Now, instant retail is also coming to lower level cities, so that people can get the same price for the same price as buying a community group, but not waiting for an day, and instead of picking it from a community group leader,” Tech Buz China’s Tech Analyst, who has been tracking group-bing art for several years. “We arrived at the time when it’s almost older model.”

The day that Mittuan stopped the purchase service of most of his groups, it also released a statement that it would expand its instant distribution business. Mittuan did not respond to any request for Ward’s comment.

Side jigs

One of the interesting aspects of the business model of the group buying is that it depends on the leaders of the thousands of contracts. Has been called Tuanjang“Regimental Commander” is a joke for the military title for the Chinese term – these people are often deeply connected to the local community and are employed by platform to promote their services and combine bulk grocery orders.

In exchange for the Sales Commission, the community leaders arrange the grocery orders and then either directly reach their neighbors or wait at home to pick them up. Most of the leaders of the community are either the owner of small retail shops or the homes who are home and retired who have a lot of time for the gig next to.