The outlook is favorable! The country has more than 500 cities, more than 2,000 counties, with a trillion-dollar market, the development of community group purchasing, the future of the big game will be to do the scale, financing, mergers and acquisitions, etc. are possible; small play around the region to do vertical categories, monopoly of the local area has a great prospect for development. There will be a number of regional giants coexisting, community group buying is also the opportunity for traditional offline retail chains to counterattack online. Community group buying is aimed at the 40 trillion retail market, the market capacity is large enough; and community group buying is mostly centered around fresh food as a basic product, the national expansion is very fast, but there is still a great opportunity for regional entrepreneurs.
The first and second tier cities have no extra money to support consumer upgrades because of the pressure of home loans, car loans and cash loans, each of which has begun to scrimp and save in preparation for the winter. While the economic pressure in third and fourth-tier cities is relatively less, the pace of life is slower, and the female-dominated population, which is able to take control of household consumption decisions, has relatively higher disposable funds and disposable time than those in first and second-tier cities. According to CEIC data, daily expenditure, diet and shopping accounted for a high proportion, which is consistent with the performance of the first-tier cities, but the housing expenditure is 18.3 percentage points lower than the first-tier cities, diet and shopping expenditures accounted for a high proportion of the housing expenditure of economic pressure is small, and more leisure time, which is undoubtedly the development of the community group purchasing hotbed.
In addition, the proportion of mobile Internet users in third- and fourth-tier cities is also growing, providing a good market foundation for community group buying. According to the China Internet database, in 2018, in the city distribution of Chinese mobile Internet users, the proportion of third- and fourth-tier mobile Internet users is as high as 55%, and the user growth rate is faster (the user growth rate of third-tier and following Internet users is 17%), and the third- and fourth-tier users have become an important source of new traffic on the mobile Internet, so the third- and fourth-tier cities are the last piece of the Internet's flow of blue ocean.
--For more data, please refer to the China Online Group Buying Industry Market Research and Investment Forecast Analysis Report published by Foresight Industry Research Institute.