Tuangou - Group Buying in China
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Tuangou - Group Buying in China

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An overview of the Tuangou- China's group buying market.

An overview of the Tuangou- China's group buying market.

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  • Full Name Full Name Comment goes here.
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  • You can also see the idea of group buying (with time based offers) being used in Qunar.com to sell rooms.. it is everywhere.
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  • I find a two website for group buying in China Beijing in English, www.mtaroom.com, www.grouponj.com www.cityweekend.com ,Chinese like to copy ,They are crazy.
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    Tuangou - Group Buying in China Tuangou - Group Buying in China Presentation Transcript

    • Tuangou- Group Buying in China Jan 2011
    • Agenda•  Chinese Group Buying ‘Fast Facts’•  Group Buying Concept•  Group Buying Issues•  Fast Facts- SinoTech Group sinotechgroup.com.cn
    • The Landscape How does the Group Buying sector look in China?sinotechgroup.com.cn
    • Chinese Group Buying Fast Facts500 billion yuan (75.4 billion U.S. dollars) was madein group buying sector in China 2010Group buying sites grew dramatically from 4 at thebeginning of 2009 to nearly 1,700 by Dec 2010China International Electronic Commerce Center(CIECC) passed regulations on Oct. 29, 2010stating that group shopping sites should obtainlicenses to participate in the businessSource: Chinese Academy of Social Sciences sinotechgroup.com.cn
    • Group Buying Adoption Expands in China 10 million Chinese used Groupon-like sites in October 2010, up from 5 million in JulyiiResearch Consulting Group sinotechgroup.com.cn
    • What’s dominating the Offers? sinotechgroup.com.cn
    • Looking Good for Make-up sinotechgroup.com.cn
    • The Chinese Group Buying Sites (Main ones) and……Groupon/Tencent JV is rumored to be announcing soon sinotechgroup.com.cn
    • Lets ‘deep dive’ How Does Group Buying Work?sinotechgroup.com.cn
    • Group Buying ConceptEach deal is only available for a limited amount of time(1-3 days normally)Users can check the group buying websites orsubscribe to SMS or email notifications. sinotechgroup.com.cn
    • Typical Group Buying Rules Typical structure1.  Unless a minimum number of deals are purchased, nobody gets it!2.  Once the target set by the merchant is met, the deal is triggered sinotechgroup.com.cn
    • It’s About the Group Spread the WordThe whole idea is to provide great discounts for bulk/group purchases. Social Media has become a key tothis model. sinotechgroup.com.cn
    • Final Thoughts on The Challenges for Group Buying Sitessinotechgroup.com.cn
    • The Challenges for Group Buying Sites-  Consumer Retention is Difficult…-  You get deal driven consumers not long term customers, you don t own the email and customer retention is low-  Limited network effect because the deals are one-off-  Clones don t require exclusivity on deals sinotechgroup.com.cn
    • The Challenges for Group Buying SitesThe number of players means commission levels arebeing eroded far from the 40-50% that offers siteswant to achieve down to 0% just to get the deal. Thiswill continue until a clear leader emerges.Some large Chinese Search & Portals eyeing thissector and can make significant inroads in a shorttime by leveraging their netizen and advertisingbase. sinotechgroup.com.cn
    • Humble SuggestionsThis is a highly competitive sector with a low barrierto entry.It’s all about the ‘offer’ – focus on securing thebest valued products and venuesWithout the offer you having nothing but atrafficked sites (or not) that is not making salesSuggestion: Build the distribution list first, then usethat as leverage to get and offer the bestproducts/venues sinotechgroup.com.cn
    • About SinoTech Group sinotechgroup.com.cn
    • SinoTech Group - Fast Facts•  Consists of two brands: Digital Jungle (Digital Agency) & SinoTech SIP (Social Media Tech/ Consulting)•  Heritage in software development•  95 employees (combined)•  Global reach•  Independent•  Offices in Beijing, Shanghai & Hong Kong•  Founded in April, 2007 sinotechgroup.com.cn
    • Thank you - Dr Mathew McDougall | @sinotechiansinotechgroup.com.cn | @sinotechgroup sinotechgroup.com.cn