Credibility issue: are those review paid to gunners who did the write-ups? will the bad ones be deleted by admin? Culture: will merchants open their ears to listen to the reviewsPolitics: will some political sensitive words being cleared by adminBusiness model similar to openrice: yet hongkong is much smaller yet china is a tremedously bigger place, how to maintain the content with the rest of provinceThe Groupbuying product: is it really needed by consumers? some may not be a big hit / merchants overloaded by the purchase.
Platform: Android and iOS (window phone 7 coming soon)Company: Digu inc.(深圳市嘀咕网科技有限公司), a subsidary of SinoFriends Inc.It had been setup since 2011 Spring.120 team member, 20 of them are customer service.200,000 user in August, 2010 and over 2 million user at current.15 million installation per year afterward due to the cooperation with the VOGINS company.(a mobile middleware provider to a mobile chipset company called MTK) (MTK-chips for a air-interface called TD-SCDMA, father of Cloned Phone山寨機)Funded by Bridger Capital、MCCapital、SEAVI Advent. and individuals: 李松, 熊志强.
DianPing & DiGu Location-based Services in China
What is location-based services? 2010.01 2010.04
Strength and weakness Strong finance power Large community of users Long term partnership with local Merchants Lack of users loyalty
Opportunity SoLoMo trend Gather a big group of potential customers via the viral effect by positive WOM and fans exclusive deals via visiting the merchant after reading the reviews, a bunch of loyal customers will gather and continue to make positive review. Stay connected with customers by holding campaigns to give refreshments and special offers to them.
Challenges Credibility issue Culture issue Politics issue Business model similar to openrice The Group buying product: is it really needed by consumers? SNS, Searching engines come into the battle field
Digu - Status Quo Platform: Android and iOS Company: Digu inc., a subsidiary of SinoFriends Inc. setup in 2011 Spring 120 employees, 20 of them are customer service. Users: 200,000 user in August, 2010 and over 2 million user at current. Finance: Funded by Bridger Capital、MCCapital、SEAVI Advent. and individuals: 李松, 熊志强. The director of the company claimed that it must take 30,000,000 US more to run the business.
An Important Corporation 15 million installation per year afterward due to the cooperation with the VOGINS company (run by MTK).
Business Model Help shops and brands to promote with the advantage of LBS check-in system letting the business partner reach their potential customers letting the mobile customers get discount coupon
Strength & weakness Strong technical team Rapid growth and large user base. more interactive community and higher user loyalty Lots of Big Brand clients Profitable business model is still not be firmly established Complicated interface No "Must Use" functions
Opportunity & Challenge Rapid growth mobile users mobile phone creates new modes of business and needs 3G network getting mature in china Voice message, online shops or recommendation can be added Keen competition Take large amount of running cost Political issue
Model of LBS Products Users LBS Local Merchant PV Promotion Revenue Game Coupon SNS Information
Future Trend in LBS Address Users’ need Mobile Payment: Shopping Assistance People Coming late: So Time etc Address Merchants’ need Target client promotion Slack season promotion etc.