Forum Posts

Robin Islam
Apr 07, 2022
In Wellness Forum
In recent years, the popularity of SaaS has been very hot. After the epidemic in 2019, the SaaS industry has been rising every year. At present, SaaS in all walks of life is facing very fierce competition, mainly because the entry threshold is too low. In addition, domestic SaaS started later than Europe and the United States, and the awareness of time is low. SaaS is easy to fall into low-price competition. The same is a SaaS company, doing the same needs, SaaS companies in Europe and the United States will not fall into vicious competition, the way of entry is completely different, everyone will not copy each other, they are all highlighting their own product features, but they can solve the same needs, in This is rarely the case in China. SaaS companies generally adopt the method of charging first and then providing services, which can be replicated indefinitely, have network effects, and have absolute mastery and control over authority and data. Cash flow, advantages, and absolute power should not be bad. But the reality is just the opposite. Most of the domestic SaaS companies are facing the risk of unbalanced revenue and expenditure, or even on the verge of bankruptcy. Many bosses have transformed from traditional outsourcing to the SaaS industry, thinking that they can avoid the unnecessary cost of labor accumulation and production, and achieve network effects, but the reality is that the network effects do not seem to be obvious. And some concepts of today's era, traditional outsourcing will no longer apply. Domestic saas products are generally very similar, you can change the ui, and even the technical solutions are very unified. You can copy what you do. If you don’t believe me, look at the newly launched online design collaboration platforms (Instant Design, Pixso, MasterGo, Code Front , mock, etc.). The reason for the lack of product power can be explained from the fact that my country's SaaS companies have not accumulated Phone Number List enough software engineering in the traditional software era, the companies themselves are eager to expand, and it is difficult to make high-quality assets. At present, all domestic SaaS companies that can survive are nothing more than three points. If they have money, they can advertise unlimitedly. Many old customers can be seamlessly connected. The boss’s own resources are relatively rich. There are only a handful of SaaS companies that can win with product power. If the enterprise itself does not have large customer resources but targets small and micro customers, it is actually very difficult to do. There is no good entry point for SaaS in China's small and micro market. This is what SaaS giants have spent hundreds of millions to verify in the past three or five years. If there are exceptions, you can still do it by "cheating". . Like Youzan, Xiaoetong, Weimeng, etc., SaaS for small and micro businesses is based on the premise of having a large number of large customers, and with the support of capital, it can survive after creating its own brand in a certain field. We have screened valuable customers here, but we have not been able to make profits alone, and we are still losing money.
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Robin Islam
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