The Dilemma Of Online Group-buying Market In China:Mechanism And Empirical Research

With the application of information technology and the popularity of the Internet, e-commerce model has unprecedented developed. Online group-buying, as a new e-commerce model, causes widespread concern in the community. The online group-buying market rose from rapid expansion to bottlenecks in China, catching the focus of the public attention. This article takes this as a starting point to deeply explore the Chinese online group-buying market’s mechanism which formed the predicament, and the ways to resolve the difficulties, to provide a reference for promoting long-term healthy development of the online group-buying market, while enrich the online group-buying theory.In this paper, we study the status quo of the online group-buying market, we sort the development process of China’s online group-buying market in three stages as the market rise, expansion and stagnation by collecting information and reading documentation, and analyze each stage’s characteristics and summarize the problems. For depth and systematic analyzing the reason why there are problems in the market and the relationship between the reasons, we build China’s online group-buying market predicament formation mechanism maps by summarizing the characteristics and problems through integrated various stages of development. Finally, we use the results of empirical analysis to test the mechanism, making further analysis on the factors which affect the development of China’s online group-buying market, offering the corresponding policy recommendations for each factor, and promote the healthy development of China’s online group-buying market.There are many problems in the online group-buying market of China, for example, most of the online group-buying websites are collapsed, the companies of online group-buying are difficult to financing, lost in credit crisis and the online group-buying websites are difficult to control some shop’s behavior. From the figure mechanism we can found that, dominated by online group-buying website and low barriers to entry are the basic factors which lead the present dilemma. Homogenization and credit crisis are the indirect factors. Dominated by online group-buying website and low barriers to entry can lead to homogenization, then low barriers to entry only can cause credit crisis, homogenization and credit crisis joint action cause poor corporate profitability, finally, appeared the present dilemma. In the late of this article, through the empirical analysis, confirm the conclusion from the figure mechanism, and combine the finally conclusion proposes several suggestions:Firstly, introduced a representative specialty product, increase user stickiness. Secondly, appropriate to reduce the frequency of product launch. Finally, the relevant regulatory authorities should assume their responsibilities, strengthening legislation, strict supervision. I believe that through the joint efforts of all aspects of the above, Chinese online group-buying market must could get a healthy long-term development; makes e-business models are rich in form.