The Re-targeting deals phenomenon- Chinese Daily Deal Market June


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An overview of the Chinese Daily Deal (Groupbuying) Market in June.
Who are the main players, what are the categories and what are the characteristics of the Re-targeting deals

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The Re-targeting deals phenomenon- Chinese Daily Deal Market June

  1. 1. dataotuan.comChinese Daily Deal Websites 2011 June ReportSpecial: Re-Targeting Deals Published: July 20, 2011 Data source: 2011 Jun. 1-30 © Dataotuan - – June 2011
  2. 2. Table of Contents Specifications Main Daily Deal Websites Analytics Deal Categories Analytics Top Deals Analytics Re-targeting Deals Summary About Dataotuan Dataotuan Tracks & Helps Contact © Dataotuan - – June 2011 2
  3. 3. Specifications 1 – Data Definitions1. All the data have been collected in the period June 1-30, 2011.2. Number of deal sites tracked: 1493. Number of cities tracked: 3144. Definitions: ① Nr. Deals – number of deals closed with the merchants and launched on the deal sites. ② Nr. Sold – total number of times that the consumers bought deals. ③ Revenue: Nr.Sold * Current price (the price the consumer pays) ④ Top Deals – the 200 deals which generated the most revenue. ⑤ Re-targeting Deals – Deals offered by 1 merchant on different deal sites *See for a full overview of what data Dataotuan has “Dataotuan Tracks & Collects” © Dataotuan - – June 2011 3
  4. 4. Specifications 2 - Categories Deals category/subcategory specification by Dataotuan. Restaurants Leisure Life services Online shopping Others Local Cuisine Recreation/Games Photography Food/Beverage Lucky draw Seafood/Buffet Film/Exhibition Car Maintenance Skin care/Make-up Charity donation Drinks/Dessert Drama/Show Pet Care Housing General vouchers for supermarkets, Japanese/Korean Hotel/Tour Education/Training Clothing/Footgear gasoline station, Western Food/ mobile phone KTV Realty/Car Trade Jewelry/Accessories International minutes, etc. Hotpot/Barbecue Sports/Fitness Medical Examination Children-related Hairdressing and Others Others Electronic Products Nail Beauty Health Others Beauty/SPA Others © Dataotuan - – June 2011 4
  5. 5. Top Daily Deal Websites – Market Share  The top 20 deal sites account for 89% of the total revenue, indicating a high market concentration.  The top 10 deal sites account for 74.8% of the market share, this was 69.3% in May. Top 10 Websites Dianping 55tuan 7.0% 6.0% June MayFtuan 58tuan Lashou Didatuan7.0% 2.6% QQ 10.0% Lashou 14.4% 6.6% 5.1% Gaopeng Gocn Juqi Meituan 8.6% Meituan 8.2% 2.2% 2.0% 1.6% Manzuo 8.4% 24quan 7.6% Nuomi 7.9% Ayatuan 24quan 8.2% 58tuan 7.5% 1.6% Nuomi 7.9% Dianping 6.5%24quan Shuangtuan 8.2% 1.3% Ftuan 7.0% QQ 5.9% Liketuan Dianping 7.0% Ftuan 5.5% Manzuo Others 1.1% 8.4% 10.9% 58tuan 6.6% Nuomi 5.2% Tuanok Meituan QQ 0.7% 55tuan 6.0% Manzuo 4.9% 8.6% 10.0% Fantong Lashou 5.1% 55tuan 3.6% 0.6% Aibang 0.7% Total 74.8% Total 69.3% © Dataotuan - – June 2011 5
  6. 6. Sites Ranking Comparison QQ is still no.1 in Nr. of deals launched, and became no.1 in terms of revenue, while it was no.6 in May. Revenue wise Lashou dropped to no.10 from the no.1 position in May. Lashou is still among the top 3 based on Nr. of Deals and Nr. Sold. Nr. of Deals Total Nr. Sold RevenueRank May June May June May June 1 QQ QQ Sina Meituan Lashou QQ 2 Lashou 55tuan Lashou QQ Meituan Meituan 3 Meituan Lashou Meituan Lashou 24quan Manzuo 4 55tuan Meituan QQ Nuomi 58tuan 24quan 5 24quan Nuomi 55tuan Dianping Nuomi 6 24quan Gaopeng 24quan 58tuan QQ Ftuan 7 58tuan 58tuan 55tuan 24quan Ftuan Dianping 8 Manzuo Ftuan 58tuan Aibang Nuomi 58tuan 9 Ftuan Manzuo Dianping Manzuo Manzuo 55tuan 10 Gaopeng Nuomi Gaopeng Dianping 55tuan Lashou © Dataotuan - – June 2011 6
  7. 7. Sites Pricing strategy  QQ offers the biggest discount, and Manzuo, the smallest.  Lashous average deal price in June was 22 Rmb less than in May (111 Rmb vs 89 Rmb), with the same discount of 62%. This explains Lashou’s fall in revenue.75% Average Discount70%65%60%55%50%200 189180 164 Average Price160 150 147140 130 127 133 124 112 111120 99 103 104 108 102 97100 90 89 78 75 May 80 June 60 40 20 0 QQ Meituan Manzuo 24quan Nuomi Ftuan Dianping 58tuan 55tuan Lashou Revenue ranking went up Revenue ranking went down © Dataotuan - – June 2011 7
  8. 8. Deals Overall Comparison There were more deals launched in June than in May. The June Deals generated on average less revenue and less nr. sold. One reason might be the average price per deal increased while at the same the average discount % went down.Average Revenue (Rmb) Average Nr. Sold Total Nr. Deals 112 20,915 1,039 57,645 101 770 46,124 18,677 Average Price (Rmb) 66% 63% May June Average Discount (%) © Dataotuan - – June 2011 8
  9. 9. Deals Category Comparison Restaurant deals are the cheapest, with the least discount. The average discount for restaurant deals in June was even less than in May, 50% vs 56%. Life services deals are the most expensive, even after the biggest discount. Average Nr. Sold Average Average (Rmb) Price Discount Life services 206 154 83% Dining 499 62 50% Online shopping 1,324 110 62% Leisure 769 104 66% Total 770 112 63% © Dataotuan - – June 2011 9
  10. 10. Nr. Deals in Different Cities In terms of the Nr. of Local Deals (Dining, Leisure and Life services) launched in different cities, Beijing ranks no. 1, followed by Shanghai and Guangzhou. The Nr. of Dining deals in Chengdu ranks nr. 3, following Beijing and Shanghai. 1800 1600 1400 1200 1000 800 600 400 200 0 Beijing Shanghai Guangzhou Wuhan Chengdu Shenyang Dining Leisure Life services © Dataotuan - – June 2011 10
  11. 11. Top Deals Analytics – Categories Among the top deals which generated the highest revenue, Leisure accounts for 31%, which might be related to the coming summer holiday. Movies, a sub-category of Leisure, are still very popular: accounting for 24% of all the top 200 deals. Online shopping deals account for a much smaller percentage compared with May. Life Others services Leisure 15% 10% June May (Others) Life services 10% 5% 7% Dining Dining 22% 19% 22% Online shopping 22% 31% Leisure (Movies) 24% 28% Leisure (Others) 7% 2% Leisure (Movies) Coupons 15% 15% 24% Online shopping 22% © Dataotuan - – June 2011 11
  12. 12. Top Deals Analytics – Deal Sites The deals which generated the most revenue are likelier to be offered by the top daily deal sites, though the ranking in June is different from May. Dianping, instead of Lashou (in May), has the biggest percentage among the top deals, followed by Nuomi and 24quan. Didatuan 3% Top Deals Analytics QQ Others 4% 8% Dianping June May 17% Ftuan Dianping 17% Lashou 17% 4% Nuomi 15% Dianping 12% 58tuan 24tuan 14% 24tuan 12% 4% Manzuo 14% Manzuo 11% Lashou Nuomi Meituan 8% Nuomi 10% 4% 15% 55tuan 5% Ftuan 7% 55tuan Lashou 4% Didatuan 6% 5% 58tuan 4% QQ 5% Meituan Ftuan 4% Meituan 5% 8% 24quan QQ 4% 3% 14% Didatuan 3% 55tuan 3% Manzuo 14% Others 8% Others 9% © Dataotuan - – June 2011 12
  13. 13. Re-targeting Deals – OverviewRe-targetingDaily deal websites are always on the look out for the best deals. One way theysource these is by looking at the competition to see which deals did well.Considering the amount of Daily Deal websites, its no surprise that successfuldeals are offered later in the same form or packaged differently by others.Dataotuan defines this as Re-targeting DealsRe-targeting deals characteristics: Merchant is well known, and is willing to explore daily deals. Merchant often has several stores. A site may have different offers from the same merchant at the same period. The original deals were successful. The deals often originate from small, local sites, then taken by the big players. The original deals are often cheap, the re-targeted deals are more expensive. Re-targeting deals can be deals in any category. © Dataotuan - – June 2011 13
  14. 14. Re-targeting Deals Case 1 – Jinjiang Inn Jinjiang Inn is a well known economy hotel chain in China. It has more than 550 hotels, with over 67,000 rooms in total, covering more than 140 cities in 31 provinces. Almost all the major deal sites have cooperated with Jinjiang Inn in June. Deal sites have very different performance results for similar deals. The original deals were offered more than half a year ago, by local sites in Xiamen and Chongqing. Merchant name Jinjiang Inn Data scraping time 2011, Jun. 1-30 Deals number * 277 Sites number 16 Cities covered 85* Including the deals offered by other hotel brands from the Jinjiang Group © Dataotuan - – June 2011 14
  15. 15. Re-targeting Deals Case 1 – Jinjiang Inn The most popular deals from Jinjiang Inn were on QQ, Ftuan, Didatuan, 58tuan. QQ: 1895 sold Ftuan: 1472 sold Didatuan: 1000 sold 58tuan: 758 sold © Dataotuan - – June 2011
  16. 16. Re-targeting Deals Case 1 – Jinjiang Inn The least popular Jinjiang Inn deals were on: Lashou, ENB,, Manzuo. Lashou: 31 sold ENB: 18 sold Manzuo: 52 sold 24 sold © Dataotuan - – June 2011
  17. 17. Re-targeting Deals Case 1 – Jinjiang Inn The original Jinjiang Inn deals were offered by local sites in Xiamen & Chongqing. 434 sold Merrytogo: 97 sold © Dataotuan - – June 2011 17
  18. 18. Re-targeting Deals Case 2 – OCT East OCT East is a large national ecological park and tourist resort. It is located in Shenzhen, Guangdong, covering an area of ​9 square kilometers, includes parks, temple, hotels, golf courses, etc. A big deal site may offer several re-targeting deals from the same merchant during the same period. The re-targeting deals are likelier to be more expensive than the original deals. The unpopular/failed re-targeting deals are likelier to be offered by the small sites, although it also happened to the big sites occasionally (see Jinjiang case). Merchant name OCT East Data scraping time 2011, Jun. 1-30 Deals number 116 Sites number 9 City covered 18 © Dataotuan - – June 2011 18
  19. 19. Re-targeting Deals Case 2 – OCT East Nuomi had 7 times different offers from OCT East in June. © Dataotuan - – June 2011 19
  20. 20. Re-targeting Deals Case 2 – OCT East Popular deals of OCT East in June are offered by Didatuan and QQ. They are more expensive than the original ones. Didatuan: 867 sold QQ: 625 sold © Dataotuan - – June 2011 20
  21. 21. Re-targeting Deals Case 2 – OCT East Unpopular or even Failed deals from OCT East in June. Dushihui: 15 sold Wanketuan: 95 sold Tuan001: FAILED © Dataotuan - – June 2011
  22. 22. Re-targeting Deals Case 2 – OCT East The original deals from OCT East: cheaper, successful. 0755tuan: 188 sold 25tuan: 988 sold 25tuan: 5001 sold © Dataotuan - – June 2011
  23. 23. Re-targeting Case 3 – Huangshanghuang Huangshanghuang Snack Packaged smoked dry pork meat  Exactly the same product, with the same price, the same discount & launched in the same period had a completely different performance on 55tuan, & Gaopeng. 55tuan:16353 sold in 5 days 3954 sold in 6 days Gaopeng: 138 sold in 4 days © Dataotuan - – June 2011 23
  24. 24. Summary 1 – Market Share & Trends The trend of the Chinese Daily Deal market in June: More deals, higher average price, less sold, less revenue. The Daily Deal market showed a higher market concentration, while the ranking of the leading websites changed significantly. The top 20 deal sites account for 89% of the total revenue, the top 10 deal sites account now for 75% (in May it was 70%.) The websites in the top 10 are the same as in May but 9 changed position. QQ launched the most deals with the biggest discount and became the No.1 in revenue in June. Mays No.1 Lashou dropped to position no.10 in revenue. The average price per deal on Lashou in June is 24 yuan (22%) less than in May, after the same discount, which explains Lashou’s fall in the revenue ranking. Leisure still accounts for the biggest percentage among the top deals; Dianping, instead of Lashou (in May), has the biggest percentage among the top deals. © Dataotuan - – June 2011 24
  25. 25. Summary 2 – Re-targeting DealsDataotuan has included for the first time an analysis of Re-targeting deals aswe noticed that similar deals offered by the same vendor/venue were poppingup more regularly.There are a couple of reasons for this: For a daily deal website the easiest and safest way is to copy proven successful deals, or at least their sales force may think so. The increasing competition among the many deal sites makes that the more well-known venues are contacted more often.The analysis showed several Re-targeting deal characteristics. Merchant is well known, and is willing to explore daily deals. Merchant often has several stores. A site may have different offers from the same merchant at the same period. The original deals were successful. The deals often originate from small, local sites, then taken by the big players. The original deals are often cheap, the re-targeted deals are more expensive. Re-targeting deals can be deals in any category. © Dataotuan - – June 2011 25
  26. 26. About Dataotuan.comDataotuan, a unique daily deal aggregator and analytics platform in China,was started with 2 goals in mind.1. To recommend the best deals to our users based on where they are, what they like and when they want it as well as giving them tools to manage them2. To analyze the deal data in order to find out what constitutes the best daily deal © Dataotuan - – June 2011 26
  27. 27. Dataotuan Tracks & CollectsDataotuan Tracks Dataotuan Collects149 of the main Daily Deal Sites Number of Deals Gross revenue Province, City, District, Category, Sub Cat.314 cities in Mainland China(*) Deals & Revenue per District Number of “real’ active Cities/Provinces2000 – 4000 new deals every day Deal Title Price (Original, Current, Abs. And % Discount) Number of Sold Deals Category/Sub Category Availability in Time City, District, Latitude/Longitude Weather & more *Dataotuan adds new Daily Deal websites on a regular basis based on quality and time of existence. © Dataotuan - – June 2011 27
  28. 28. Dataotuan HelpsDaily Deal websites  Sales Tool to help Source & Re-target deals as well as explore new cities  Daily Deal Predictor  Competition Analysis  City Market Entry  SWOT of your website or the competitionAnalysts and Investors  Estimates of the Gross Revenue of the main Daily Deal websites.  Revenue trends for the main Daily Deal websites  Detailed market analysis for all tier cities in Mainland China.  Detailed category analysis for provinces & 1st and 2nd tier cities  Daily Deal Winners & Losers benchmarkMerchant Advisor:  Select the most relevant daily deal website for your offer  Help to decide discount & pricing etc based on Dataotuan data. © Dataotuan - – June 2011 28
  29. 29. Dataotuan Announcements Dataotuan Singapore is out of her soft launch, see Dataotuan Malaysia is now in soft launch, see Dataotuan Philippines comes soon, bookmark Dataotuan offers from now on also the sales & data products for Singapore and Malaysia The Philippines is expected to be data ready in the coming month. If you like Dataotuan to track a specific country, please contact us © Dataotuan - – June 2011 29
  30. 30. Contact Dataotuan We’re happy to help you, please contact us at: Chinese +86 13761796676 Email: English +86 13801660890 Email: Read more on Follow us on Subscribe to our Reports The objective of this report is to offer insights into the Chinese Daily Deal industry. Data are collected from the main Chinese deal websites and offer a reliable indication of the Chinese daily deal market The one daily deal website that unfortunately is not included due to not providing data access (api) is Please contact us if you have any questions/remarks related to this report. © Dataotuan - – June 2011 30