---
title: "Community Group Buying Enters Deep Water, New Voices in Traditional Markets"
description: "Community group buying has entered a deep-water zone, with supporters citing doubled order volumes in lower-tier cities as evidence of market acceptance, while detractors warn that unsustainable subsidy-driven practices are fleeting. The article explores various types of group leaders and consumer attitudes, offering recommendations for platforms to focus on quality, operational details, and leader development."
author: "高级研究员 海游"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2021-08-04"
language: "en"
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---

# Community Group Buying Enters Deep Water, New Voices in Traditional Markets

> Community group buying has entered a deep-water zone, with supporters citing doubled order volumes in lower-tier cities as evidence of market acceptance, while detractors warn that unsustainable subsidy-driven practices are fleeting. The article explores various types of group leaders and consumer attitudes, offering recommendations for platforms to focus on quality, operational details, and leader development.

**Click to read the original article for details**
One is the pro-community group buying faction: In second- and third-tier cities, recent group buying order volumes have doubled, indicating an inevitable trend. The market has accepted this model. As long as new consumption habits are formed, it will succeed, and major platforms need to persist.
The other is the anti-community group buying faction: You don't know until you see it. Previously, "shearing wool" (exploiting subsidies) was done strand by strand; now it's like shaving the sheep's head directly. How long can these sheep be sheared? Any business behavior that does not return to the essence of business is a flash in the pan. Next, I'll share what I've recently seen and heard.
**Several Attitudes of Group Leaders**
**1. Professional Group Leaders:**
Around 10:30, during a market visit, I encountered a convenience store unloading goods (Here I must mention: Major community group buying delivery platforms must regulate transportation; mixing food, beverages, and daily chemicals is non-compliant. While pursuing efficiency, food safety must also be considered).
A 3-meter-long van was fully loaded with community group buying products. The store owner was actively assisting the driver in unloading, holding a thick order book to check items. Inside the store, the core display positions that traditional FMCG manufacturers once fought over were piled high with products like a small mountain.
This is a typical supermarket owner who embraces community group buying and is also a professional group leader. Under a big tree, no grass grows. It is understood that such super group leaders are likely the only one within a few kilometers, earning monthly commissions of several thousand to even ten thousand yuan.
Besides actively promoting platform products, they also require their store employees and family members to actively share on WeChat Moments and in WeChat groups.
I glanced at their WeChat: they have established 8 groups, each with about 100 people. They have fixed daily product information push times, irregular red packet interactions in the groups, and when consumers pick up products, they are enthusiastic and continuously introduce related products on the platform that are on promotion.
Some professional group leaders are also hardworking, but in their eyes, only product and price matter, so they won't sell high-quality products.
Here I want to say: **Major community group buying platforms, don't always think about changing models, spending money on acquiring traffic, or competing on low prices. Instead, organize sharing and training sessions for excellent regional group leaders.**
**The era of group leaders growing wildly on their own is over. In the near future, whichever platform has high-quality group leaders will dominate the market. Now is the time to build a growth base for group leaders. Community group buying is another channel for consumers to obtain products. Platforms should not always think about subverting tradition but rather integrate into it.**
**2. "New-Type" Group Leaders:**
Visiting a supermarket, I noticed about 200 packs of toilet paper at the entrance. It was learned that the store owner ordered them from the platform, had all products delivered to the store first, and then sold them to consumers (unlike the "shearing wool" group leaders).
The process is roughly: First, promote special product prices in their WeChat groups; those willing to buy reply "1"; after summarizing product demand, they place a unified order. Consumers come to the store and pay cash on delivery at platform prices.
If consumers buy a certain amount of other products in the store, the group leader can bring the group buying products when delivering to their door.
This type of group leader solves consumer pain points: Daily necessities can be stocked up, but everyone is busy. First, they don't often browse apps; second, they might miss "shocking price" products; third, they are too "lazy" to pay on the platform; fourth, they hope group buying products can also be delivered to their door.
**3. Simple Pickup Points:**
Coincidentally, one of my clients, besides being an agent for products, also owns a tobacco and alcohol supermarket. He felt "novel" and became a group leader for several platforms. He doesn't worry much, doesn't promote products on WeChat Moments or in groups, and is just a simple pickup point.
Every day, personnel deliver products to the store (Strictly speaking, food should not be placed directly on the floor; at least a pallet is needed. But in reality, they just put it on the floor and leave. The delivery person only ensures the quantity is accurate).
Consumers pick up their own products, and the owner doesn't check (Neighborhood trust is key; if something is lost, they report it to the platform). He doesn't care about commissions and only checks his phone when he remembers.
This is a microcosm of a large portion of group leaders. They feel about being a group leader like chicken ribs: tasteless to eat, but a pity to discard. Others do it, so I'll do it too, but I won't invest time and energy. I'll just be a pickup point without taking any responsibility.
**4. "Shearing Wool" Group Leaders:**
They pay close attention to price information on major platforms. Combined with their own products, they buy in large quantities at low prices and then sell them on store shelves. This type of group leader accounts for a significant proportion. I've described them in previous articles, so I won't repeat here.
**Consumer Attitudes**
Under the "traffic war," community group buying seems not so friendly to consumers. Low prices are good, but quality is indeed not guaranteed. Look at a few photos I took on July 30:
Fresh fruits and produce have always been an important category for platforms to attract traffic. Look at these two products, both ordered for a few cents:
The banana is not much longer than the product label, and its quality is clearly about to spoil. The storage condition is normal (Actual situation: temperatures above 35°C, no air conditioning in the store, door open with fans), shelf life is 3 days, packaging date is 2021-07-28. I feel that if it wasn't taken away at unloading, it should be thrown away by afternoon.
This is a dragon fruit. Holding it in hand, not to mention whether there is flesh after peeling, but its storage condition claims to require refrigeration. That's self-deception.
I just want to ask: For a product costing a few cents, the group leader's commission is a few cents. Would they put it in their freezer, occupying cold storage resources for beverages during the dog days of summer? Without surprise, it should be thrown away after noon.
I met a few consumers who came to pick up their orders and chatted with them. Here's a summary:
**1. Group Buying Enthusiasts:** They have several platform apps on their phones, and from the phone screen protector, they are also phone addicts.
They reported that they almost order some items on the platform every day, and it has become a habit. They know which products are worth buying (brands on promotion) and which are cheap but a waste to buy (generic brands with big price cuts). They speak with authority, likely having fallen into many pitfalls.
**2. Group Buying Newbies:** They are busy at work and don't have time to browse their phones. When playing with their phones, a recommended product pops up, and they think it's cheap, so they order it.
But the experience is not good. The edamame they bought was of poor quality, like what vegetable vendors would give away for free as a bonus when buying other items.
**3. "Bargain-Hunting" Group Buyers:** 9.9 yuan for 12 bottles of salt soda, 4.9 yuan for beef sauce, similar to the few-cent fruits above. These shocking prices attract a large number of consumers seeking "more than value for money."
In many cases, they do get a lot in quantity, but the quality loss is huge. Some consumers order cheap goods, but when they see the product at pickup, they abandon it. This happens from time to time.
**4. Price-Comparing Group Buyers:** One consumer admitted that they have developed a habit of comparing prices for any product. For example, to buy a pack of mineral water, they habitually open all community group buying apps on their phone, compare prices, and then buy. They rarely look at others' recommendations and make purchase decisions on products they know well.
**A Few Words for Platform Companies**
1. Community group buying should not be a place for low-priced, poor-quality products. Strictly control product quality and have higher requirements for product quality. Products should not just meet the survival bottom line of "edible," "drinkable," or "usable." In today's pursuit of quality life, build a "premium supermarket" for community group buying.
2. Standardize operational details. The devil is in the details. For example, delivery products (food and daily chemicals like insecticides) should be placed separately. At pickup points, products should be placed on pallets. Pickup points that cannot provide refrigeration should not sell products requiring refrigeration. Neglecting these details could bring disaster to group buying platforms.
3. Be more serious in reviewing group leaders; don't just go through the motions. Secondly, it's not about having the most quantity but improving the quality of group leaders. Be willing to spend money and time on training group leaders' skills and attitudes, and grow together with high-quality group leaders.
4. To do well in FMCG business through community group buying, capital and traffic are far from enough. For products related to people's livelihood, facing 1.4 billion consumers, it requires gradual accumulation and precipitation. Communicate sincerely with every consumer, strive to make each order a good experience, and make a friend at the same time.
5. Community group buying should adjust its mindset. You cannot subvert traditional models, at least in the next five years, your scale is not enough to surpass traditional marketing. However, community group buying has indeed optimized the supply chain and improved efficiency. It can be defined as a product channel that is easier to reach consumers.
**PS**: From August 24-26, 2021, the 2021 (4th) China FMCG Conference hosted by New Distribution will be held in Shanghai. **Focusing on industry trends + practical cases + growth through connections**, 3000 FMCG practitioners will gather.
10 thematic forums cover **new retail O2O, community group buying, short video and live streaming e-commerce, distributor transformation, rise of new consumer brands, new alcoholic beverage interpretation, distribution B2B supply chain, omnichannel marketing, B2B2C new technology applications**, etc. Operators in each segment will bring the latest case studies.
Confirmed heavyweight guests so far include: 1. Tao Shiquan, founder of Jiangxiaobai; 2. Yao Xuhong, general manager of Meiyijia Holdings Co., Ltd.; 3. Lu Xiuqiong, global expert partner at Bain & Company and former vice president of marketing for Coca-Cola China; 4. Chen Xiaodong, senior vice president of Nestlé Greater China; 5. Zhang Fujun, president of Lee Kum Kee Sauce Group China; 6. Bi Chaojiao, general manager of China Resources Snow Breweries (China) Marketing Center; 7. Yang Hongbin, vice president of Junlebao Dairy Group; 8. Yang Shun, COO of Lipton Greater China; 9. Zhang Yipeng, general manager of Kuaishou E-commerce SKA Brand Operations Center; 10. Li De, e-commerce general manager of Gold Hong Ye Paper Group...
**A grand gathering for FMCG professionals, you must be there!**
**Are you "watching" me?**


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