It all starts with the group leader. The group leader—let’s call them GL—spots a great offer on, say, Korean-style cold noodles. The GL alerts group members, “Hey, check out these noodles. They’re going for so little! Do you guys want any? Yeah? How many?”
The members place their orders, and within days, the GL receives a huge cardboard box full of ready-to-eat noodles. Now, the GL marks a pickup day and arranges for a contactless self-collection process. On the day, the group members arrive one-by-one and pick up the number of noodles they ordered via the GL.
Webuy shows how group buying is a threat unto itself in SE Asia
It was community group buying’s moment to shine. Group leaders were willing to get groceries for all. Social commerce was booming. But Webuy is caught between two models—group buying and e-commerce. To survive and grow further, the Singapore-based company needs to nail its business
Webuy engages thousands of group leaders to acquire customers via social networks
Group buying helps lower customer acquisition costs, and leaders take care of the last-mile delivery, lowering logistics costs
Webuy could very well be following the successful Pinduoduo model, but there’s no one-size-fits-all approach
If anything, Webuy needs to double down on its strategy in each existing market before eyeing new markets