Drug retailers rushed to “buy the wind” and stuck to consumers at a low price

Business Club News, January 10 As of September 2010, according to surveys conducted by the Group's Buying and Navigation Network, the number of group buying websites that have begun to take shape in China has reached 1,500, and it is advancing toward 2,000 companies. This has created a situation of “One Thousand Regiment Wars.” Although with the intervention of market consolidation and government regulatory power, the growth rate of group purchase network began to slow in the fourth quarter of 2010, but the new form of e-commerce “group purchase” has greatly changed the consumption habits of Chinese consumers. . According to data from the Digital Hundred Market Research Company, among the major group purchase websites surveyed, the total number of group purchases reached 181 million in September last year, of which only one public comment network accounted for nearly 380,000 people.

In the tide of group purchase popularity, at the end of 2010, online pharmacies as the drug retailer's online pioneer began to “open up”. Among them, one is a cooperative group-opening model represented by pharmacy network; the other is an independent group-opening model represented by Golden Elephant.

Cooperation "open group"

For consumers, the significance of group purchase is beyond the expected low price; and for businesses, the value of group purchase is reflected in the rapid increase in passenger flow and popularity. “Unlike advertising, group purchase can not only achieve low-cost promotion, but also bring orders. This is why merchants are interested in group purchases,” said one industry source.

For this argument, pharmacy network gave a beautiful example of the “Ping” security campaign launched last Christmas.

On December 14, 2010, Pharmacy.com opened a group on the LIKE Group (one of the group buying sites that appeared earlier in the country) and sold the original price of 128 yuan per box of Xinjiang Aksu Candy Heart Apple + pharmacy network at the price of 58 yuan. Coupons. On the website of the LIKE Group, as of December 23, 2010, the group purchase ended, and a total of 3275 people purchased the product mix.

It is understood that for the opening of the group, pharmacy network specifically from Xinjiang Akesu origin of the acquisition of 400,000 kg of high quality "candy heart" apple. This kind of apple is also known as the "New Aristocracy of Red Fuji". It is famous for its honey-like crystals as part of the apple's nucleus. It is produced only in the Aksu region of Xinjiang, China. This apple contains a wealth of pectin, helps regulate bowel movements, detoxification, prevent obesity; at the same time it is rich in a lot of vitamin C, eat often can keep the skin delicate and ruddy.

Although the pharmacy network sells apples, it seems to be a bit "not a good job," but the industry believes that representing healthy apples is precisely an interpretation of the pharmacy network health strategy. And even more critical is that Apple has brought 3275 customers to the pharmacy network within a few days. The other $10 voucher will undoubtedly "urging" more than 3,000 customers to visit the pharmacy network again to shop...

It is worth mentioning that on December 24, 2010, the pharmacy network reopened and sold apples. This time, the number of buyers reached 3,716. As early as November 23, 2010, pharmacy network and the LIKE team achieved the first cooperation, sales of "Mentholatum watercolor lip balm + Le Dunqing eye drops + Bonner bandage + pharmacy network 10 yuan voucher" product portfolio At that time, the number of purchasers reached 9,692.

In fact, online pharmacies that carry out group purchases in the LIKE group are not the only pharmacy network. November 25, 2010, happy people online pharmacies in the LIKE group to 3 yuan price to sell a "happy people online pharmacies 55 yuan voucher." Commitment: Whole-course products (including special products and buying products), including daily medications, health foods, beauty care, sex supplies, medical equipment, fine products and more than 10,000 kinds of goods selected; Beijing, Nanchang Free Shipping ; 300 city cash on delivery, goods unconditional return within 10 days. Finally, a total of 6,665 people purchased the voucher.

Not only that, the traditional pharmacy figure also appeared in the LIKE group. On December 7, 2010, Beijing Jiuzhou Tongda Pharmacy Chain Co., Ltd. joined hands with the LIKE Group to sell health products at an original price of 79 yuan at a price of 62 yuan for a total of 1,508 people.

Recalling the number of purchases by several drug retailers in the LIKE Group's several opening group experiences: 1508, 3275, 3716, 6665, 9692 - which is a powerful combination of customer acquisition capabilities.

"This is just a group buying platform for the LIKE Group. There are many similar group buying platforms," ​​said one industry insider. It is understood that before the cooperation with the LIKE team, pharmacy network has held hands with Sina's group buying platform; Baiyang Health pharmacy network has also conducted group purchase cooperation with Sohu Ai Family Group in Jasper's premium equipment, and consumers only need to spend 24 Yuan Sentuan, you can get the original price of 72 yuan Jasper combination package......

And in the group purchase platform that pharmaceutical retail companies cooperate with, a special case is "pharmaceutical calendar." Although it is rarely seen in many group buying websites, although group purchase is just a value-added service of the pharmaceutical calendar, it is special because it “only buys drugs”.

On January 6th, 2011, the reporter saw on the drug calendar that the drugs he was currently purchasing had livelihood, federation, and angongniuhuang pills. Due to its qualification to publish drug information, Pillnet can provide such a group purchase platform: Pharmocinology provides preferential information for drugs, and transactions are completed between consumers and drug suppliers—pharmaceutical retail companies. Since drug information and sales of drugs on the Internet must all have corresponding qualifications, drug retailers cannot collaborate with other group purchase platforms on drug purchases directly.

“The difference between the drug calendar and other group buying websites is, in a nutshell, that when someone buys consumer goods, we only buy drugs; if someone else collects cash, we don’t collect it; others buy and send the goods home, we only provide coupons; The important thing is that the group purchase products provided by others do not rule out quality problems, but the medicines we provide must be kept faithful and reliable.” CEO of Pharmaceutical History Network Xu Qi said in an interview with the media.

Independent "open group"

December 27, 2010, Golden Elephant Group buy channel "Golden Elephant" officially opened.

Unlike pharmaceutical retail companies such as pharmacy network, which rely on third-party professional group purchase networks to carry out group purchases, Golden Elephant opened its own website on its own website and became the first online pharmacy to open an online group purchase business in China.

The first group of “Golden Elephant” purchased a multi-dimensional element of RMB 42 at the original price of 35 yuan, and promised to buy a bottle of vitamin C worth 39 yuan. In only 3 days, the number of buyers reached 5532. people. Later on December 30, 2010 and January 4, 2011, the "Golden Elephant Group" opened one after another and bought green A spirulina fine tablets and winter essential cold medicine packs, but the number of buyers was far lower The first order was 635 and 151 respectively.

At the same time, these two figures are also far lower than the number of purchases made by the pharmacy network and Happy People Online pharmacies when they collaborate with the LIKE Group. In this regard, industry sources said that as a professional online pharmacy, Jinxiang.com's group purchasing business has just started and its influence is naturally lower than that of professional group buying websites. The consumers of the “Golden Elephant” group also mainly come from the original website of Golden Elephant. customer. In this context, it is not easy for Jinxiang.com to just sell its own sales volume.

At present, the group-buying websites such as US Mission Network, 24 Coupons, and LIKE Group have accumulated a large number of customer resources in different regions of the country. In cooperation with them, they can quickly increase their visibility and obtain large orders. However, due to participation in group purchases of goods that require extremely low prices to attract eyeballs, and at the same time to share profit sharing with group purchase websites, even though there are orders, cooperative opening groups also become a promotion method, and not a profit-making behavior.

In contrast, independent grouping does not require profit sharing with third parties. And for online pharmacies, the independent opening of the group also allows drugs to participate in group purchases.

Low price sticks to consumers

According to a survey conducted by Digital 100 Market Research, 59.2% of the consumers surveyed who participated in group purchase thought that the low price was the most important reason for their participation in group purchases. The downside of this is that consumers tend to keep a close eye on prices and are generally less loyal to businesses. "Today, when you are cheap, you come to you; tomorrow, when he is cheap, you go to him and become the general consumer guideline for group buying consumers," said an industry source.

In other words, at present, only “cheap” can be used to attract consumers to group purchases. After group purchases of cheap products, whether consumers are willing to come back for consumption is not certain. What's more, once the merchants do not properly assess their abilities and launch excessive discounts, the group purchases of goods or services will not be honored and the quality of the consumer experience will decline. So much so that the desire of merchants to increase product awareness through group purchases to bring repeat customers is totally opposite.

Therefore, for pharmaceutical retail companies, attracting popularity through group purchase is only the first step. How to stick to popularity and keep the attracted consumers in their own stores is the key to success.

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