Download pdf - Group Buying Market in China

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！


Value Chain of Group Buying in China


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


The Current Market Trend of Group

Buying in China


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%.


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)



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.


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




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.


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




The total number of deal has reached 20,000 and 50,000 by September and December 2010

respectively.


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




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.


Category Analysis of Group Buying in

China


Classification of Group Buying Deals


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%




Total Amount of Purchase for Each Category, in CNY million


Food & Drinks 460 12%

Entertainment 543 15%

Healthcare & Beauty

219 6% Accessories

1169 31%

Cosmetics 1282 34%

Other 57 2%




Regional Analysis of Group Buying in

China


The Distribution of Group Buying Websites in Main Cities




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


The Total Number of Buyers in Each Main Cities




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)


Comparative Analysis of China’s Top 10 Group Buying Websites


The Deals Trend of Top 10 Group Buying Websites




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)


The Buyers Trend of Top 10 Group Buying Websites




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)


The Average Per Capita Consumption of

Top 10 Group Buying Websites




￥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)


Comparative Analysis between

The Top 10 Group Buying

Websites and Overall Group

Buying Websites in China


The Contrast Between The Sales of The Top 10 Group Buying

Websites and All Group Buying Websites


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.



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


The Average Number of Daily Deals per Website


1870%

In average, the top 10 websites have created a higher amount of deals than the rest.



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


Market Forecast of Group Buying in

China 2011


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%.



Currency

Rates:

1 CNY =

0.15 USD

USD 2.7 Billion

USD 0.5 Billion


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

http://www.slideshare.net/TuangouEvangelist/20100728-chinas-groupbuying-market-letyobrief











http://www.slideshare.net/TuangouEvangelist/20100830-chinas-groupbuying-market-letyo-mobile-monday-36pptm-5110813

































http://wenku.baidu.com/view/a1e1edbef121dd36a32d82c3.html


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!