What does group buying mean?

Meituan group buying refers to the group buying business under Meituan. As the name implies, group buying refers to a way of shopping in which consumers who know or don't know each other unite to increase their bargaining power with merchants in order to obtain the best price.

The benefits of group buying are mainly manifested in two aspects: first, the group buying price is lower than the lowest retail price in the product market, and second, it can effectively guarantee the quality and service of products.

The reasons why group buying can bring the above benefits:

First, participating in group buying can effectively reduce the transaction costs of consumers and obtain reasonable low prices on the premise of ensuring quality and service. Group buying is essentially equivalent to wholesale, and the group buying price is equivalent to the wholesale price of products in the group buying volume. Through online group buying, passive decentralized purchase can be changed into active bulk purchase, and products with the same quality can be purchased, and lower prices and better services can be enjoyed.

Second, it can completely change the weak position of consumers caused by opaque market and asymmetric information in traditional consumption behavior. By participating in group buying, we can learn more about the specifications, performance and reasonable price range of products, and refer to the objective and fair evaluation of products by group buying organizers and other buyers, so as to take the initiative in the purchase and service process and really buy products with good quality, good service and reasonable price, so as to save time, worry, effort and money.