It’s tough being a small fish in a crowded pond – which is likely how many of China’s group buy sites are feeling. They’re seeing average deal prices fall, and it’s crushing revenues for some. But Chinese giant Tencent, with its tuan.qq.com (pictured above), looks to be gaining a reasonably strong hold of this highly fragmented market.
New stats from group buy deal aggregator DaTaoTuan show trends across pricing and market share for last month. When compared with May’s report, it paints a nicely detailed picture of the very tough competition.
It has also identified the issue of “re-targeting” – whereby a successful deal is copied by other group buying sites.
Before looking at the full slideshow, here’s the graphic showing market share in June, with a comparison to May’s numbers. It shows that the Tencent deal site rose to 10 percent market share, while Lashou – which secured US$110million in funding earlier this year – had a bad month to slip to tenth place. Manzuo had a good month.
Looking at the broader picture, and especially at revenues in June in the group buy sector, we see tuan.qq.com topping the number of offered deals as well as revenue, and coming second in terms of sold deals. Gaopeng – the actual Chinese Groupon that’s not to be confused with the shanzhai groupon.cn – seems to have had a lot of offered deals, but wasn’t able to follow through with sold deals or actual revenue.
Dig around in the slideshow, and you’ll see how consumers are opting for cheaper daily deals, which is driving down the average price of deals – though the discount rate looks stable – and hurting some of the sites.
[Source: Dataotuan.com]
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