---
title: "Is the \"Community Group Buying\" Under Shanghai's Epidemic a Miracle of \"Resurgence\"?"
description: "Community group buying, once dismissed, has again become a symphony due to the Shanghai epidemic. Before this, community group buying had already begun its retreat, with platforms shrinking, transforming, and shutting down, intensifying elimination. In most people's view, community group buying has become a tough business, and platforms still holding their ground are like \"grasshoppers after autumn,\" still bouncing stubbornly. However, the Shanghai epidemic has once again sparked a wave of community group buying, with some even believing that community group buying has \"revived\"! Is this really a miracle of \"resurgence\"? The epidemic..."
author: "田静"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2022-04-12"
language: "en"
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original_source: "https://mp.weixin.qq.com/s/lydA3BLlCL-qZwKKMuuU7g"
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---

# Is the "Community Group Buying" Under Shanghai's Epidemic a Miracle of "Resurgence"?

> Community group buying, once dismissed, has again become a symphony due to the Shanghai epidemic. Before this, community group buying had already begun its retreat, with platforms shrinking, transforming, and shutting down, intensifying elimination. In most people's view, community group buying has become a tough business, and platforms still holding their ground are like "grasshoppers after autumn," still bouncing stubbornly. However, the Shanghai epidemic has once again sparked a wave of community group buying, with some even believing that community group buying has "revived"! Is this really a miracle of "resurgence"? The epidemic...

Community group buying, once dismissed, has again become a symphony because of the Shanghai epidemic.
Before this, community group buying had already begun its retreat, with platforms shrinking, transforming, and shutting down, intensifying elimination. In most people's view, community group buying has become a tough business, and platforms still holding their ground are like "grasshoppers after autumn," still bouncing stubbornly.
However, the Shanghai epidemic has once again sparked a wave of community group buying, with some even believing that community group buying has "revived"!
Is this really a miracle of "resurgence"? Can the community group buying that broke out during the epidemic be compared on the same level?
Some netizens joked: "Shanghai people are already using all their strength just to stay alive." In the current era of food and clothing, even basic needs have become a problem, which shows that the business model triggered under such conditions cannot be generalized.
Because of the contingency of the large-scale outbreak of the epidemic, it is essentially a business model under abnormal conditions. The market needs healthy development and a virtuous cycle; any business that goes against the basic logic of business is a flash in the pan.
**"Community Group Buying" Under the Shanghai Epidemic**
"Did you grab any vegetables today?" This is a common greeting among Shanghai residents; "When will my vegetable package be delivered?" is the most frequently asked question every day.
People in Shanghai under the epidemic have fully experienced what it means to "struggle to get vegetables." After that, various residential communities started a wave of "community group buying" battles for self-rescue.
The difference is that the initiators of this community group buying come from "all walks of life": some are merchants directly, some are community owners volunteering as group leaders, some are mom-and-pop store owners, posting group buying information on Weibo, community owner groups, and Moments, and then volunteers connect with them.
Because everyone's needs are different, different categories of group buying groups have emerged, such as milk groups, vegetable groups, fruit groups, etc.
Some people joke: "Life in Shanghai depends on 'group leaders'." But strictly speaking, this spontaneous community group buying is not community group buying in the true sense.
Teacher Liu Chunxiong mentioned a viewpoint: using individual relationships and connections, and the continuous supply capacity of the supply chain and distribution chain, to complete normalized channel connections is unit organization, and community group buying is a type of unit organization.
**Therefore, without a supply chain, the exchange of goods and digestion of squeezed materials under short-term material scarcity is not community group buying.**
To be precise, it is better to say this is a self-help or mutual aid among Shanghai people.
In addition, some group buying is conducted through platforms such as Group Leader, Kuaituantuan, and Pinduoduo. The initiator supplements the product description and amount to publish, and participants can click to join and directly fill in information and pay.
At this critical moment, group buying platforms like Kuaituantuan and Pinduoduo have also become popular instantly.
But this "popularity" is different from the usual.
**First, community group buying under epidemic control violates the basic logic of business**
"It's good to have something to eat; don't be picky," is a common complaint from Shanghai residents. Under the lockdown, material shortages have become normalized, with residents of Tomson Riviera and ordinary housing competing on the same starting line for vegetables and group buying.
Some people describe the feeling of Shanghai residents when they manage to get vegetables: it's like when you're about to drown and suddenly see a piece of driftwood, and not far away there are others holding onto driftwood, floating on the water.
So, when survival becomes an urgent issue, the market is in a "pathological" state, and the business logic under this "pathological" state cannot be generalized.
**Second, the epidemic control has led to elastic consumer demand: "one low, one high"**
In fact, community group buying is a stock market, and residents' consumption demand has an upper limit.
Under normal market conditions, there are many players in community group buying. It competes with online e-commerce giants and offline supermarkets and vegetable markets. It can be said that there are wolves ahead and tigers behind, and the customer base is very sensitive to prices and has high quality requirements, which means low customer loyalty.
At this time, for group buying platforms, consumer demand is high, but loyalty is low.
Image source: Shangguan News (Volunteer group leader Zhang Yong)
When the market enters epidemic control, the irrational market environment increases customer loyalty: they are not sensitive to prices, they order vegetables without hesitation if they can buy them with money; they do not have high requirements for product quality, as long as they are edible; they are not picky about product variety, buying whatever is available; they are more tolerant of supply chain delivery times, even if it arrives a few days late.
At this time, consumer demand decreases, but loyalty increases.
Looking at the elastic changes of "one low, one high," has the Shanghai epidemic really "revived" community group buying? I hold a skeptical attitude.
**Third, the occasional gathering of consumer groups caused by the epidemic**
A few days ago, I interviewed a consumer, Mr. Yuan, who is at the center of the Shanghai epidemic.
According to his account, before the lockdown, he had almost no contact with his neighbors and no social interaction. His daily consumption needs, such as stocking up on daily necessities, were bought online from JD.com and Tmall, and vegetables and fruits were bought from supermarkets and vegetable markets, pursuing freshness. He had never participated in community group buying.
But after the epidemic, the community was locked down and residents could not leave their homes. To solve the material needs, he began to join various community group buying groups and established social relationships with neighbors. During this group buying process, consumer groups gathered, and the consumer base expanded.
But after the lockdown ends? Mr. Yuan said he would return to his previous consumption habits and would not participate much in community group buying.
The consumer group represented by Mr. Yuan accounts for a large base. In first-tier cities like Shanghai, there is a large proportion of consumers who are migrant workers and have not formed two-generation or three-generation families.
So strictly speaking, the consumer group represented by Mr. Yuan still does not belong to the community group buying consumer group. The gathering of this group occurred under special circumstances. When the epidemic ends, will the group participating in community group buying still show a "prosperous" scene? It remains to be seen.
**Community Group Buying Outside Shanghai**
Whether spontaneous or regional, group buying is in full swing in Shanghai. In contrast, community group buying outside Shanghai is playing an increasingly fierce "elimination match."
Duoduo Maicai has been reported to have densely "closed, transferred, and merged" stations, with many inefficient groups being closed or merged to control costs and improve efficiency. The Alibaba MMC business group behind Taocaicai may cut 20% of its staff, with the overall strategy shifting from offense to defense. Xingsheng Youxuan is fully withdrawing and cutting group points with daily orders less than 3, and upgrading multiple grid stations to grid warehouses.
After the prosperity, some exit in decline. Some entered in the middle or late stage, with scale advantages, but no one has ever crossed the "comprehensive profitability" threshold. Others focus on regions, dominate one market, expand rapidly, and shrink decisively, which can be described as bold and decisive.
For example, in the second half of 2021, Dingdong Maicai, Shihuituan, Meicai.com, etc. successively reported layoffs. The Shoude system expansion failed, Xingsheng Youxuan was forced to shrink, Tongcheng Life went bankrupt, Dailuobo closed down, and Shihuituan, despite Alibaba's capital backing, had lost its momentum. What remains are Meituan Youxuan, Duoduo Maicai, and Taocaicai still holding on.
**Behind the mixed fortunes, community group buying platforms have collectively entered an adjustment period.** Looking at community group buying inside and outside Shanghai, it can be described as "ice and fire," and for a time, "the flowers are gradually enchanting the eyes," with some continuing to be optimistic and others once dismissing it. Some people ask: Is the Shanghai epidemic an opportunity for community group buying? Individual cases are not enough to represent the whole. Due to the temporary nature of spontaneous group buying, it is likely that after the epidemic is lifted, everyone will go their separate ways.
But for group buying platforms like Kuaituantuan and Pinduoduo, based on rigid group buying demand, formulating differentiated "retention strategies" is a very good opportunity to get closer to consumers.
For example, using communities to do after-sales service; making details, adding small gifts during material delivery to create "surprises." Why do consumers like discounts, promotions, and buy-one-get-one-free activities? Because everyone has a "greedy" psychology, and being given gifts will move them, essentially occupying the consumer's mind.
**Finally, the most sensitive concern for consumers is price.**
On April 10, in response to the community group buying that broke out again in Shanghai, the Shanghai Municipal Administration for Market Regulation issued a reminder letter on regulating the price behavior of "community group buying" during epidemic prevention and control.
It reminded that all "community group buying" organizers and related operators should clearly mark prices in accordance with regulations, and when selling goods, they should indicate the product name, price, and pricing unit. For goods sold in packages, they should indicate the total price and the names and quantities of the included products.
For separately charging service fees such as packaging and delivery fees, they should indicate the service items, prices, and pricing units, and must not sell goods at prices higher than the marked prices, nor charge any fees not clearly indicated. The government's intervention is to adjust the market and give consumers a reassurance.
In the long run, under the premise of ensuring certain profits, providing stable and reasonable prices will invisibly convert consumers who still have group buying needs after the epidemic from "public domain" to "private domain."
For the entire industry, whether it is a miracle of "resurgence" still needs time to verify. But for regional group buying platforms in Shanghai, it may be an opportunity to grasp the lifeline.
**In conclusion:** In recent years, the epidemic has been intermittent, and entering the post-epidemic era, similar "black swan events" occur frequently. From the consumer's perspective, their consumption behavior will also change to a certain extent, such as stocking up to resist risks.
Similarly, setting aside the community group buying under the Shanghai epidemic, looking at the entire industry, how can community group buying stabilize its basic business? From the frequent "grab vegetables" incidents in Shanghai, how can community group buying ensure the balance of supply and demand? After all, this track is destined to require long-term maintenance, and its ceiling is high enough. How to reduce costs and increase efficiency is worth pondering for most enterprises.
**Are you "watching" me?**


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