The battle for China's community group buying market



In the standard model, consumers from different cities can form a group to purchase goods—it is not restrained by geography. This standard model is often more spontaneous in the way that a shopper can share product links with anyone in their network.

But community group buying is more intentional and organized. This model usually has a community leader who takes responsibility for maintaining relationships among the residents in the buyers’ Wechat group. Consumer trust in the community leader is the foundation of this purchasing model.

The community leader often receives a commission based on how many orders are made within their community. This provides more motivation to socialize with the residents in the WeChat group.

The community model not only ends up being cheaper for buyers but the platforms, too. Since all members of one buying group live within the same community, platforms can replace individual deliveries with daily bulk deliveries to service a community.

By building on word of mouth marketing, it helps brands to strengthen the consumer loyalty and leverages on their fans to promote their brand and products.

WeChat groups can help the brands to be very specific when it comes to targeting the consumers. For example, I’m in groups for dog owners and pet owners in the neighbourhood.


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