Groupon usually adopts an acquisition approach when entering a new market. In Asia, Groupon had already acquired clone sites in India, Philippines, Singapore and Taiwan. But without China and its 1.3 billion-population market, Groupon’s quest in Asia will never be completed.
Groupon realizes that it needs an experience partner and it seems that China’s largest Internet behemoth, Tencent, is poised to be Groupon’s helping hand in China, an undisclosed source told Global Times.
It was believed that both Groupon and Tencent would set up a joint-venture group buying social site in China. Tencent’s wide reach and knowledge in the Chinese market will provide Groupon with the strong backbone needed to succeed in China. Tencent’s QQ IM has over 630 million active users in China, surpassing Facebook’s 500 million golden figure. But this remains a rumor as both Tencent and Groupon have yet to confirm the news. Tencent PR team hasn’t replied Penn Olson on this so far.
Although there are numerous group-buying clones in China for acquisition, Groupon has decided to set up an entirely new site from scratch. There are two possible reasons here: (1) There isn’t any suitable clone that fits into Groupon’s brand identity and operation and (2) Tencent proves to be a more strategic partner in the long term. Groupon is fast to make its move into China, a smart move indeed. We shall see if this rumor turns out to be true. It will open up an exciting chapter in Groupon’s history.
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