community group buying has spread to Orange Heart.
On September 9th, the reporter of CBN learned exclusively that the community group buying business of Didi , Orange Heart Optimal Group, had ceased operations in Changzhou on September 8.
The local operations staff told the delegation leader that Orange Heart preferred to stop operations because of optimization and adjustment. The system has automatically closed the group site on September 8th, which will not affect the group leader’s withdrawal. At the same time, orders on September 8 will be delivered as usual.
Earlier, there was also news that Orange Heart Optimal will continue to shrink. As of press time, Orange Heart Optimal has not responded.
retreats after one year on the line
Orange Heart has experienced attack and retreat within one year.
In June 2020, Didi launched a community e-commerce business called "Orange Heart Optimal" in Chengdu, focusing on limited-time spike products below market prices, including fresh food, food and beverages, and household products. In September last year, Didi announced that the daily order volume of Orange Heart Optimal in Sichuan exceeded 550,000. At the same time, the business was officially launched in Xi'an, and then the business was expanded to the whole country.
Didi once had high hopes for the selection of Orange Heart. Last year, when Didi CEO Cheng Wei mentioned doing community group buying business, he said that Didi has no upper limit on the investment in Orange Heart Optimum, and strives to win the first place in the market.
From the perspective of the company's structure, Didi has repeatedly deployed troops for Orange Heart. In October last year, it was announced that Lai Chunbo, CTO of platform company , was transferred to Chengxin.
Judging from the time point, Didi was not only the first Internet company to cut into community group buying, it also launched a new gameplay last year. In December of last year, Didi's Orange Heart Optimal Group launched the Orange Heart Store strategy and shifted its focus to offline. In September of this year, Orange Heart Optimal started to test the "Orange Heart Optimal Store", an offline self-promoting store co-operated by Orange Heart Optimal and the team leader, hoping to further expand its market share.
But Orange Heart Optimal did not achieve the desired result. According to Analysys Qianfan's data, in April this year, the number of active users of Orange Heart was 2,935,700, and then the number of active users in May and June fell by 4.35% and 10.7% from the previous month.
The head of the team, Xiao Wang, told China Business News that from his daily orders, Orange Heart Optimal only has a few orders. Currently, Duoduobuying and Meituan Optimal have more orders.
Orange Heart's preferred retreat is just a microcosm of the current community group buying. In July this year, Fresh Orange Technology, the main operating company of Tongcheng Life, issued an announcement that it plans to file an application for bankruptcy and abandon its original community group buying business. Another community group buying platform 食惠会 announced the transformation of the snack track. In August, Jingxi Pinpin, a subsidiary of JD.com, began to shrink and withdrew from Shanxi.
In response, He Yixuan, a senior analyst at Analysys Circulation Industry Center, told China Business News that after a long period of expansion in the community group buying industry, many companies have not established strong barriers before. Under the pressure of competition, it is difficult to hold onto the market and users, and it does not have enough funds to carry out a continuous price war. In the case of difficult profitability, some companies have retreated and transformed. Recently, some giant platforms are also making adjustments when market competition is difficult to break through, and they have begun to pay more attention to the quality of operation in the stock market instead of just pursuing expansion.
team leader is busy withdrawing cash
For many team leaders, the platform's announcement of the suspension is nothing new.
Leader Xiao Li told China Business News that after Tongcheng Life announced its bankruptcy in July, it has become a habit for many delegation leaders to withdraw cash daily. "Tongcheng Life announced its bankruptcy, and we saw the platform change its name when we posted the link. You know. In terms of commission settlement, other platforms can withdraw commissions every day, but the settlement method of Tongcheng Life is that the platform automatically settles on the last day of each month, and it will be sent to personal accounts on the 8th of next month. Tongcheng announced its bankruptcy. There are still a few days of commissions in June and July that have not been settled. The same journey asked us to sign the contract and only gave 60%. Only accept, without any discussion, otherwise there will be no dime.
Xiao Li said that because the platform went bankrupt, the settlement was relatively tough. The group leaders could only agree to settle this way, and she alone lost nearly 3,000 yuan in commission. For the settlement method of the same journey, the group leader is small Wang also said that something was true.
The settlement method of the same journey life made the group leaders a little uneasy. Xiao Li said, "Because of the same journey, the group leader was scared to withdraw cash on other platforms every day. "
On the other hand, the commissions of the leaders in less than a year are experiencing a three-level dive. Xiao Li said, "Some new platforms have very high commissions when they are launched, and can reach 10%, because they must pass high commissions in the early stage. Let the group leader be willing to promote. Once the platform is recognized by customers or its popularity increases, the commission will drop. For example, when a platform was first launched, the commission was 10%, and it became 5% after a few months. Later, some commodity commissions were only 1%. But now, 1% is gone. ”
From the screenshot provided by Xiao Li, she received only 0.01 yuan and 0.07 yuan for the two orders that were traded on September 9th, and the commission share was about 0.1%.
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