2011/02/22
AHN SEUNGHAE, China’s Group Buying Evangelist/ CEO
LetYo.com, The China’s Best Group Buying Search!
The China’s Best Group Buying Search!
-2- 2011 LetYo.COM All rights reserved. 找团购 上来优!
-3- 2011 LetYo.COM All rights reserved. 找团购 上来优!
Value Chain of Group Buying in China
-4- 2011 LetYo.COM All rights reserved. 找团购 上来优!
Suppliers Customers Group Buying
Sites
• Service Suppliers
• Product Suppliers
• Service Oriented
• Product Oriented
• Hybrid
Credit Certification
• Ministry of Commerce
Certification
Hardware/Network Offline Service
Provider
• Network Service Provider
• Server, Software and
Hardware Supplier
• Delivery
• Customer Service
Outsourcing
• Outsourcing supplier
Offline Media
• News Paper
• Magazine
Online Service
Provider
• Site Solution Provider
• Bill/Payment Service
Provider
Help to Promote
Help to Operate
Group Buying
Search/Aggregators
• LetYo.com
• Hao123 and so on
Online Media
• SNS\Internet Sites
• Portal
-5- 2011 LetYo.COM All rights reserved. 找团购 上来优!
The Current Market Trend of Group
Buying in China
-6- 2011 LetYo.COM All rights reserved. 找团购 上来优!
The Growth of the Group Buying Website (Accumulated)
(March-December 2010)
Source:Referred from LetYo’s record on its website
©2010 来优(LetYo)团购生活 LetYo.com
21 85
238 366
553
782
1,008
1,388
1,708
1,964
-
500
1,000
1,500
2,000
2,500
Amount
Referring to the statistic made by LetYo.com, there are 2,000 Group Buying websites being setup in
China within 10 months. Between these 10 months, the Compound Monthly Growth Rate of Group Buying Website is 66%.
-7- 2011 LetYo.COM All rights reserved. 找团购 上来优!
1 6 22 76
175
378
564
657
858
991
-
200
400
600
800
1,000
1,200
Amount (in CNY million)
Market Size of Group Buying in China, by Amount of Purchase
(March-December 2010)
Source:Referred from LetYo’s record on its website
©2011 来优(LetYo)团购生活 LetYo.com
The accumulated sales of the industry has increased from CNY 175 million to CNY 991 million between April and
December in China. According to the report published on October 2010 [4][5], the accumulated sales forecast is
CNY 3.1 billion. However, the fact shows that the actual accumulated sales has reached CNY 3.7 billion.
-8- 2011 LetYo.COM All rights reserved. 找团购 上来优!
2 16 41 163
367
822
1,149
1,528
2,196
2,409
-
500
1,000
1,500
2,000
2,500
3,000
Number of Buyers (in 10,000 people)
Market Size of Group Buying in China, by Number of Buyers
(March-December 2010)
Source:Referred from LetYo’s record on its website
©2011 来优(LetYo)团购生活 LetYo.com
In 4 months time, the number of buyers has reached 1.63 million people and it continue to rise at
a rate of 1350% by November. Although repetition of buying may occur, the market size of group
buying industry is more than 20 million people towards the end of year 2010.
-9- 2011 LetYo.COM All rights reserved. 找团购 上来优!
101 477 1,488 3,371
7,409
15,584
20,886
29,553
48,411
56,700
0
10,000
20,000
30,000
40,000
50,000
60,000
Deals
The Growth of the Total Number of Group Buying Deals
(March-December 2010)
Source:Referred from LetYo’s record on its website
©2011 来优(LetYo)团购生活 LetYo.com
The total number of deal has reached 20,000 and 50,000 by September and December 2010
respectively.
-10- 2011 LetYo.COM All rights reserved. 找团购 上来优!
225
333
275
484
495
527
550
517
454
425
¥13,059 ¥13,079
¥15,508
¥25,990 ¥28,192
¥33,932
¥40,557
¥31,127
¥24,807 ¥24,468
0
100
200
300
400
500
600
2010/03 2010/04 2010/05 2010/06 2010/07 2010/08 2010/09 2010/10 2010/11 2010/12
¥-
¥5,000
¥10,000
¥15,000
¥20,000
¥25,000
¥30,000
¥35,000
¥40,000
¥45,000
Average Number of Buyers per Deal
Average Number ofBuyers per Deals
The Average Incomeper Deals
Average Income per Deal
Average Income per Deal and Average Number of Buyers per Deal
(March-December 2010)
Source:Referred from LetYo’s record on its website
©2011 来优(LetYo)团购生活 LetYo.com
Among these 10 months, the average number of buyers per deal is 428 people while average sales income per
deal is CNY 25,072. Due to the tremendous growth of Group Buying websites, the rate is decreasing after
September of 2010.
-11- 2011 LetYo.COM All rights reserved. 找团购 上来优!
Category Analysis of Group Buying in
China
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Classification of Group Buying Deals
(March-December 2010)
Food & Drinks 26,096
14%
Entertainment 29,137
16%
Healthcare & Beauty 16,933
9%
Accessories 56,856
31%
Cosmetics 47,706
26%
Other 7,285
4%
Source:Referred from LetYo’s record on its website
©2011 来优(LetYo)团购生活 LetYo.com
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Total Amount of Purchase for Each Category, in CNY million
(March-December 2010)
Food & Drinks 460 12%
Entertainment 543 15%
Healthcare & Beauty
219 6% Accessories
1169 31%
Cosmetics 1282 34%
Other 57 2%
Source:Referred from LetYo’s record on its website
©2011 来优(LetYo)团购生活 LetYo.com
-14- 2011 LetYo.COM All rights reserved. 找团购 上来优!
Regional Analysis of Group Buying in
China
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The Distribution of Group Buying Websites in Main Cities
(March-December 2010)
Source:Referred from LetYo’s record on its website
©2011 来优(LetYo)团购生活 LetYo.com
653
456
166
97
85
71
67
56
65
60
50
48
38
40
31
28
34
32
31
29
29
37
25
25
37
30
328
0 100 200 300 400 500 600 700
Nationwide
Beijing
Shanghai
Guangzhou
Shenzhen
Tianjin
Hangzhou
Wuhan
Nanjing
Chengdu
Xian
Changsha
Suzhou
Jinan
Xiamen
Wuxi
Chongqin
Zhengzhou
Qingdao
Fuzhou
Ningbo
Shengyang
Hefei
NanChang
Shijiazhuang
Dalian
The Other 68 Cities
Number of Websites
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The Total Number of Buyers in Each Main Cities
(March-December 2010)
Source:Referred from LetYo’s record on its website
©2011 来优(LetYo)团购生活 LetYo.com
4,071
2,320
1,708
349
280
302
167
335
193
151
133
109
85
76
72
818
71
67
71
34
49
48
42
35
47
26
448
- 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500
Nationwide
Beijing
Shanghai
Guangzhou
Shenzhen
Tianjin
Hangzhou
Wuhan
Nanjing
Chengdu
Xian
Changsha
Suzhou
Jinan
Xiamen
Wuxi
Chongqin
Zhengzhou
Qingdao
Fuzhou
Ningbo
Shengyang
Hefei
NanChang
Shijiazhuang
Dalian
The Other 68 Cities
Number of Buyers (in 10,000 people)
-17- 2011 LetYo.COM All rights reserved. 找团购 上来优!
Comparative Analysis of China’s Top 10 Group Buying Websites
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The Deals Trend of Top 10 Group Buying Websites
(March-December 2010)
Source:Referred from LetYo’s record on its website
©2011 来优(LetYo)团购生活 LetYo.com
14 57 129
330
712 818
1,537
1,154
1,896
2,261
0
500
1,000
1,500
2,000
2,500
0
50
100
150
200
250
300
350
400
450
500 拉手
(lashou.com)
美团
(meituan.com)
F团(ftuan.com)
糯米网
(nuomi.com)
大众点评团
(t.dianping.com)
满座
(manzuo.com)
嘀嗒团
(didatuan.com)
58团购
(58tuan.com)
24券
(24quan.com)
QQ团购
(tuan.qq.com)
-19- 2011 LetYo.COM All rights reserved. 找团购 上来优!
The Buyers Trend of Top 10 Group Buying Websites
(March-December 2010)
Source:Referred from LetYo’s record on its website
©2011 来优(LetYo)团购生活 LetYo.com
3 12 23 139
350 553
5,036
1,011
2,448 2,208
0
1,000
2,000
3,000
4,000
5,000
6,000
0
200
400
600
800
1,000
1,200
1,400
1,600 拉手
(lashou.com) 美团
(meituan.com) 糯米网
(nuomi.com) QQ团购
(tuan.qq.com) 大众点评团(t.dianping.com) 满座
(manzuo.com) 嘀嗒团
(didatuan.com) 58团购
(58tuan.com) 24券
(24quan.com) F团(ftuan.com)
Number of Buyers
(in thousand people)
-20- 2011 LetYo.COM All rights reserved. 找团购 上来优!
The Average Per Capita Consumption of
Top 10 Group Buying Websites
(March-December 2010)
Source:Referred from LetYo’s record on its website
©2011 来优(LetYo)团购生活 LetYo.com
¥21 ¥19
¥48
¥21
¥29 ¥31
¥13
¥36 ¥29
¥41 ¥45
¥87
¥57
¥35
¥25
¥36
¥49 ¥50
¥35
¥50
¥-
¥20
¥40
¥60
¥80
¥100
¥120
¥140 拉手
(lashou.com)
美团
(meituan.com)
F团(ftuan.com)
糯米网
(nuomi.com)
QQ团购
(tuan.qq.com)
大众点评团
(t.dianping.com)
满座
(manzuo.com)
嘀嗒团
(didatuan.com)
58团购
(58tuan.com)
24券
(24quan.com)
-21- 2011 LetYo.COM All rights reserved. 找团购 上来优!
Comparative Analysis between
The Top 10 Group Buying
Websites and Overall Group
Buying Websites in China
-22- 2011 LetYo.COM All rights reserved. 找团购 上来优!
The Contrast Between The Sales of The Top 10 Group Buying
Websites and All Group Buying Websites
(March-December 2010)
Although the sales of the top 10 Group Buying websites has reached CNY 1 billion, they only
occupy 26% of the market. This shows that the China’s Group Buying market is a long-tailed
industry.
Source:Referred from LetYo’s record on its website
©2011 来优(LetYo)团购生活 LetYo.com
All Group Buying Websites,
¥3,729,019,903
Top 10 Group Buying Websites,
¥976,282,348
0 1,000,000,000 2,000,000,000 3,000,000,000 4,000,000,000
26%
Long-tailed market
-23- 2011 LetYo.COM All rights reserved. 找团购 上来优!
The Average Number of Daily Deals per Website
(March-December 2010)
1870%
In average, the top 10 websites have created a higher amount of deals than the rest.
Source:Referred from LetYo’s record on its website
©2011 来优(LetYo)团购生活 LetYo.com
All Group Buying Websites, 94
Top 10 Group Buying Websites,
1,752
0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000
-24- 2011 LetYo.COM All rights reserved. 找团购 上来优!
Market Forecast of Group Buying in
China 2011
-25- 2011 LetYo.COM All rights reserved. 找团购 上来优!
LetYo.com Estimate of Group Buying
Market Size for Year 2011
CNY 3.7 Billion
CNY 18.2 Billion
2010 2011
CNY 000 million
CNY 5000 million
CNY 10000 million
CNY 15000 million
CNY 20000 million
According to LetYo.com’s analysis, the compound monthly growth rate of the last 3 months in
2010 has reached 23% while the sales on December 2010 has reached CNY 900 million. Based
on the figures in year 2010 (CNY 3.7 billion of sales), the market size forecast for year 2011 will
reach CNY 18.2 billion, with an estimated growth rate of 392%.
Source:Referred from LetYo’s record on its website
©2011 来优(LetYo)团购生活 LetYo.com
Currency
Rates:
1 CNY =
0.15 USD
USD 2.7 Billion
USD 0.5 Billion
-26- 2011 LetYo.COM All rights reserved. 找团购 上来优!
1. China's Group Buying(Groupon Clone) Market. Analysis(Brief). (2010, July 28). Retrieved
from http://www.slideshare.net/TuangouEvangelist/20100728-chinas-groupbuying-market-
letyobrief
2. China's Group Buying Market LetYo Mobile Monday. (2010, August 30). Retrieved from
http://www.slideshare.net/TuangouEvangelist/20100830-chinas-groupbuying-market-
letyo-mobile-monday-36pptm-5110813
3. China’s Group Buying Market. (2010, October 31). Retrieved from
http://www.slideshare.net/TuangouEvangelist/20101031-china-group-buying-market
4. iresearch Group Buying Expert Column. (2010, September 12). Retrieved from
http://column.iresearch.cn/u/anchenghai/
5. 中国团购市场研究报告(2010年10月31号),摘自
http://wenku.baidu.com/view/a1e1edbef121dd36a32d82c3.html
Chinese
English
-27- 2011 LetYo.COM All rights reserved. 找团购 上来优!
LetYo.com is a specialized search service focused on Group Buying deals and credibility with the largest
Group Buying deal database and safety features such as site credibility level and safety mark. LetYo.com
collects 20,000 daily deals from 1,500 services in China, including Meituan, Lashou, and many more.
LetYo.com recommends the best of the daily deals to users based on the preferences they have
expressed to LetYo.com.
Highlights China’s first Group Buying aggregator and search service (LetYo.com’s former domain, Tuan123.net
was launched in April 1, 2010)
Short-listed in Red Herring Asia Top 200 Most Potential Tech Company
Awarded with“The Most Trustable Group Buying Aggregator in 2010” in The Annual China Information
Innovation Awards which is organized by China Center for Information Industry Development,
subsidiary of Ministry of Industry and Information Technology of the People’s Republic of China
The first-ever accredited Group Buying aggregator by China National Credit Information Service Ltd
Exclusive partner for China National Credit Information Service Ltd., a subsidiary of the State Council
and the Ministry of Commerce
Exclusive partner for Lenovo IdeaLife’s Group Buying channel
Jointly published “China Group Buying Market Research Report” with China Center for Information
Industry Development, subsidiary of Ministry of Industry and Information Technology of the People’s
Republic of China, “China‘s economy and informatization” Magazine in Oct, 2010
The China’s Best Group Buying Search!