Groupon in China

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Trend report
Groupon marketing in China

Groupon
• It is the process that online users could purchase the products or services through the internet in a low discounted price during a limited time. It was first introduced to China in Year 2009, since then, it was rapidly increased • In 2009, the total revenue was only 2.5 billion RMB and now in 2011, it increased to 23.7 billion RMB and this is the result of the support of 108 business firms. • also, in 2011, the number of online users in China was over 500 million, among them, online shoppers exceed 200 million. The huge demand of consumers was also a stimulation of Groupon growth.

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According to the vertical market in Year 2011, the total groupon sales could be divided into 6 parts. The food and restaurant is almost 20%, entertainment is 10%, services is 8%, tourism related is 3% and the other online products are 58%. These data is from chinese groupon website, among them, the " ju hua suan"'s 2011 total sales is over 10 billion RMB and it was about 80% of the total sales of all the groupon firms in 2011, since it was the biggest groupon firm in China.

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A. There is a groupon market system first introduced overseas, then a lot of people in China began to study this new system and introduced it to China at the beginning of 2010 B. Thousands of groupon business firms entered this industry, got a lot of investments and competed with each other. C. Recession in Capital market and the groupon market began to consolidate D. Market structure was disorganized and the competition between thousands of groupon firms was over E. Market tend to be more stable and mature.

Groupon marketing profit mode

Commission and service fees are still the main source of sales

As the business mode of these groupon firms changed, they were also gradually changed the way to make money. These competitive firms began to develop themselves from the single commission mode to a more diverse...
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