We wrote that Gaopeng.com, a domain for Groupon China was bought and launched under Tencent’s name. But in actual fact, the Groupon management team in Germany launched the domain without notifying Tencent. In response, Tencent shut down the servers of the website.
Groupon wants things to be done fast. In China, Groupon has so far hired over 1,000 employees within a few months and is looking to add even more. TechCrucnh reported that “the operation is pure chaos: Rapid hiring, little due diligence and money being thrown around. The biggest gripe: It’s almost entirely run by foreigners.”
The Groupon China website is also designed in western style while Tencent wants it in Chinese style. Clearly, Groupon’s moves aren’t catered for the Chinese market. I find it really hard to understand why Tencent isn’t the one handling Groupon’s localization strategy in China. Well, I guess Groupon’s arrogance makes them think they know it all. Although both Groupon and Tencent own equal share in the joint venture, it was reported that the Groupon German team makes most of the decisions.
Oliver Samwer, the person in charge of Groupon’s overseas expansion for the Germany team is in talks with Ouyang Yun, CEO of the joint venture on Tencent’s side. It was also reported that the joint venture might collapse if both fail to reach an agreement.
To the Groupon team: China isn’t like the West and it will not become like the West. So, don’t look at China through the Western lenses. Catch Martine Jacques’s TED’s presentation to understand China better.
[Via Global Times]
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