“Group Moms” Explained: A Unique Marketing Tactic in Taiwan for F&B and Household Goods Businesses

A must-read for F&B and household goods businesses!

“Group moms,” also known as group buying moms or group leaders, are the individuals who initiate group buying activities.

Group moms create communities, typically through LINE groups or Facebook, and attract followers to join. They promote products within these communities and coordinate group orders, enabling followers to purchase products at discounted rates.

Once collaboration terms are established with manufacturers, group moms promote the products within their communities, handle order organization, collect payments from buyers, and report the orders back to the manufacturers. The manufacturers then ship the products to the group moms, who distribute them to the members who placed the orders.

Group buying is a popular marketing technique employed by many brands. By collaborating with group moms to initiate group buying activities, the potential profits lost through offering discounts are transformed into marketing costs, reaching local consumers who may be difficult to target through other means, such as online marketing.

Each group mom has her own community, and through daily interactions and communication, they cultivate trust and loyalty among their followers. Group moms are particularly skilled at using the language of their target audience to introduce products and persuade their followers to make purchases based on their own experiences.

Group buying is suitable for various products, including food items, health supplements, daily necessities, and travel tickets. However, it is important to consider that group buying heavily relies on offering significant discounts to attract buyers. Therefore, products with lower marginal costs are more suitable for group buying promotions, as they mitigate the associated risks. Group buying activities can be particularly beneficial for products with high market growth potential, as they can rapidly increase market visibility and attract a specific target audience.

The commission rate for group moms typically ranges from 10% to 30%, depending on their reputation and the size of their following. In the case of highly reputable group moms, an additional advertising fee may be required.

To prevent commission-related issues, such as group moms collecting commissions and then falsely claiming consumer returns, it is advisable to specify in the contract that the group mom’s commission will only be calculated after the consumer receives the product, exceeds the seven-day inspection period, and does not request a return.

Collaborating with group moms in Taiwan’s market presents an exciting opportunity for brands in the F&B and household goods sectors. Through group buying brands can tap into new markets, leverage targeted promotions, and benefit from the influential power of group moms to boost sales and enhance brand visibility.

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