The Chinese Daily Deal Market in August - Quantity or Quality?

© Dataotuan - blog.dataotuan.com – Aug. 2011

Chinese Daily Deal Websites 2011 Aug. Report

Special: Top Deals & Seasonal Deals

dataotuan.com

Data source: Dataotuan.com 2011 Aug. 1-31Published: Sept. 26, 2011

© Dataotuan - blog.dataotuan.com – Aug. 2011 2

Table of Contents

Specifications Main Daily Deal Websites Analytics Deals Overall Comparison Top Deals Analytics Seasonal Deals Summary About Dataotuan Dataotuan Tracks & Helps Contact


Specifications 1 – Data Definitions

1. All the data have been collected in the period Aug. 1-31, 2011.

2. Number of deal sites tracked: 149

3. Number of cities tracked: 314

4. Definitions:

① Nr. Deals – number of deals closed with the merchants and launched on the deal sites. (including the number of failed deals)

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 500 deals which generated the most revenue.

⑤ Seasonal deals – the deals that are popular in a specific season or around the time of a specific festival.

⑥ Local deals – the localized service deals, including dining, leisure and life services. Normally they are only available for consumers from a specific city.

*See for a full overview of what data Dataotuan has “Dataotuan Tracks & Collects”


Specifications 2 - Categories Deals category/subcategory specification by Dataotuan.

Dining Leisure Life Shopping Others

Local Cuisine Recreation/Games Photography Food/Beverage Lucky draw

Seafood/Buffets Film/Exhibitions Car Maintenance Skin care/Make-up Charity donation

Drinks/Dessert Drama/Shows Pet Care Household

General vouchers for supermarkets, gasoline station,

mobile phone minutes, etc.

Asian Food Travel Education/Training Clothing/Footgear

Western Food KTV Medical Services Jewelry/Accessories

Hotpot/BBQ Sports/Fitness Hair/Nail Beauty Kids

Dining Others Leisure Others Beauty/Massage Electronic Products

　　 Life Others Shopping Others


Top Daily Deal Websites – Market Share 1

QQ, 12.0%

55tuan, 9.6%

Lashou, 9.0%

Meituan, 7.0%

Dianping, 6.8%

Manzuo, 6.6%Nuomi, 5.8%

24quan, 5.6%

58tuan, 5.0%

Ftuan, 4.3%

Gaopeng, 4.2%Ganji, 2.8%

Gocn, 2.2%

Juhuasuan, 2.2%Didatuan, 2.1%

Juqi, 1.8%

Ayatuan, 1.4%

Pintuan, 1.2%Tuanok, 1.0%

Shuangtuan, 0.8%

Others, 9.0%

In terms of total revenue, QQ has the biggest market share (12%). The top 20 deal sites in total account for 91% of the group-buying market share.


Top Daily Deal Websites – Market Share 2

Top 10 Websites (Revenue)

June July August

QQ 10.0% QQ 11.9% QQ 12.0%

Meituan 8.6% 55tuan 9.3% 55tuan 9.6%

Manzuo 8.4% Manzuo 7.6% Lashou 9.0%

24quan 8.2% Meituan 7.1% Meituan 7.0%

Nuomi 7.9% Dianping 7.1% Dianping 6.8%

Ftuan 7.0% Lashou 6.3% Manzuo 6.6%

Dianping 7.0% Nuomi 5.9% Nuomi 5.8%

58tuan 6.6% 58tuan 5.8% 24quan 5.6%

55tuan 6.0% Ftuan 5.6% 58tuan 5.0%

Lashou 5.1% 24quan 5.4% Ftuan 4.3%

Total 74.8% Total 72% Total 71.5%

The top 10 deal sites remained the same from June to August, although some changed positions. Gaopeng is still 1 position out of the top 10 in terms of revenue.


Sites Ranking Comparison

7

RankNr. of Deals Total Nr. Sold Revenue

June July Aug June July Aug June July Aug

1 QQ QQ QQ Meituan QQ QQ QQ QQ QQ

2 55tuan 55tuan 55tuan QQ Meituan Lashou Meituan 55tuan 55tuan

3 Lashou 24quan Lashou Lashou 55tuan Meituan Manzuo Manzuo Lashou

4 Meituan Gaopeng 24quan Nuomi Lashou 55tuan 24quan Meituan Meituan

5 24quan Lashou Gaopeng 55tuan Ganji Ganji Nuomi Dianping Dianping

6 Gaopeng Meituan 58tuan 58tuan Nuomi Nuomi Ftuan Lashou Manzuo

7 58tuan 58tuan Meituan 24quan Gaopeng Manzuo Dianping Nuomi Nuomi

8 Ftuan Ftuan Ftuan Aibang Dianping 24quan 58tuan 58tuan 24quan

9 Manzuo Manzuo Manzuo Manzuo Manzuo Dianping 55tuan Ftuan 58tuan

10 Nuomi Nuomi Nuomi Dianping 24quan Gaopeng Lashou 24quan Ftuan

Top 10 Websites

QQ is again no.1 in Nr. of deals launched, total nr. sold and total revenue. Gaopeng is no.5 in Nr. of deals, but only no.10 in Nr. Sold, and no.11 in Revenue. Dianping is no.20 in Nr. of deals, but no.9 in Nr. Sold, and no.5 in Revenue. This comparison indicates the big difference in deal quality between the two sites.


Sites Pricing strategy The average discount of all the daily deals is 64%, the average price is 137 Rmb. The discount of the top 10 deal sites ranges from 58% to 69%; The average price ranges from 106 to 315 Rmb.

50%

55%

60%

65%

70%

Qq

55tuan

Lash

ou

Meituan

Dianp

ing

Man

zuo

Nuo

mi

24qu

an

58tuan

Ftuan

Gao

peng

0

100

200

300

400

8

Average PriceOverall price/deal: 137 Rmb

Average DiscountOverall average discount: 64%

315

58%69%

106

58%


Deals Overall Comparison Comparing the statistics from May to July, more and more deals were launched, but they generated on average less and less revenue as well as less Nr. Sold. One reason might be the average price per deal kept increasing while at the same time the average discount percentage went down.


Deals Category Comparison Dining deals make up 27.5% of all deals launched, followed by Life service deals (25.2%). Dining deals are the cheapest, with the smallest discount. Life services deals are the most expensive, even after the biggest discount.

Dining, 27.5%

Leisure, 22.4%Life, 25.2%

Shopping, 21.9%

Others, 3.3%

Dining Leisure Life Shopping Others　　　　　　 Average Nr. Sold 290 405 130 629 4316

Average Price (Rmb) 75 137 208 143 78

Average Discount 54% 63% 82% 57% 56%


In East China the most local deals (Dining, Leisure and Life services) are launched. Southwest and especially Northwest China are trailing behind. In North China the average deal price is the highest, in the Central it's the lowest.

Daily Deals in Different Regions

　 Nr. of Local Deals

Average Nr. Sold/ Deal

Average Price/ Deal (Rmb)

Average Discount

East China 33,778 305 132 63%

North China 14,190 511 174 65%

South China 14,073 267 167 64%

Central China 9,913 389 109 65%

Northeast China 7,891 354 128 62%

Southwest China 7,098 370 127 64%

Northwest China 4,044 504 111 66%


Daily Deals MarketRegion by Region


Nr. of Local Deals

Average Nr. Sold/Deal

33,778

4,044

14,190

14073

9,913

7,891

7,098

132

174

167

109

128

127

111


Top Deals Analytics – Deal Categories

　 Aug. July June

Life services 17% 10% 10%

Dining 21% 26% 22%

Online shopping 18% 21% 22%

Leisure (Movies) 20% 28% 24%

Leisure (Others) 13% 9% 7%

Others 11% 6% 15%

33%

Life Service, 17%

Dining, 21%

Online Shopping,

18%

Leisure（Movie）,

20%

Leisure（Others）,

13%

Others, 11%

Leisure accounts for 33% of the highest grossing top deals, the summer holiday may play a big role here. Movies, a sub-category of Leisure, continue to be popular, accounting for 20% of all the top 500 deals. But this percentage is lower than in July (28%). Dining deals are the 2nd most popular category among the top deals.


Top Deals Analytics – Deal Sites

Dianping, 19%

Nuomi, 13%

Manzuo, 12%Meituan, 9%QQ, 7%

55tuan, 6%

24quan, 5%

Ftuan, 4%

Ganji, 3%

Didatuan, 3%

Gaopeng, 3%

Lashou, 2%58tuan, 2%Others, 12%

Dianping, as in June and July, again has the biggest percentage among the top deals, followed by Nuomi and Manzuo.


Seasonal Deals - 1 Moon cake deals are very popular in August, the month before Mid-autumn Festival: 10,685 deals are launched, which account for 9% in total deal number, 6% in total revenue in August. Moon cake deals also take 4% among top deals.


Other seasonal deals with “Mid-autumn Festival” as the sales point, including dining, travel, entertainment, etc.

Seasonal Deals - 2


17

Summary 1 – Market Trends

1. The trend of the Chinese Daily Deal market – Deals’ Quantity goes up and Quality goes down.

Comparing the statistics from May to August, each month more and more deals are launched, but at the same time the average Nr. Sold and the average Revenue are getting less and less. The total deal number in August doubled the number in May, but the average revenue per deal decreased 1/3, and the average no. Sold per deal declined nearly 50%.

2. QQ keeps leading, Dianping shows good quality control.

As in June and July, QQ is the no.1 in Nr. of Deals launched, total Nr. Sold and

Revenue. Revenue wise the top 10 sites remained the same, though the ranking changed. Dianping shows good quality control: it is only no.20 in Nr. of deals, but its Nr. Sold ranks the 9th place, and Revenue ranks the 5th place. Dianping continuously has the biggest percentage among the top deals.


Summary 2 – Top Websites & Failed deals

4. Top sold deals and seasonal deals analytics:

Leisure accounts for 33% of the 500 top deals; among the popular leisure deals, the majority is in the sub-category Movies (20%), though the percentage is smaller than in July. Dining deals are the 2nd most popular category among the top deals. As the very popular seasonal deals, 10,685 moon cake deals are launched, which account for 9% in total deal number, 6% in total revenue in August. Moon cake deals also make up 4% among top deals.

3. There is a big difference among the 7 regions in China, in terms of the development of the daily deals market.

In East China the most local deals (Dining, Leisure and Life services) are launched. Southwest and especially Northwest China are trailing behind. As for the average deal price, North China is the highest; Central China is the lowest.


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 them

2. To analyze the deal data in order to find out what constitutes the best daily deal


Dataotuan Tracks & CollectsDataotuan Tracks

*Dataotuan adds new Daily Deal websites on a regular basis based on quality and time of existence.

Deal Title

Price (Original, Current, Abs. And % Discount)

Number of Sold Deals

Category/Sub Category

Availability in Time

City, District, Latitude/Longitude

Weather & more

Deals & Revenue per District

Number of “real’ active Cities/Provinces

Number of Deals

Gross revenue Province,

City, District, Category, Sub Cat.

314 cities in Mainland China(*)

2000 – 4000 new deals every day

Dataotuan Collects

149 of the main Daily Deal Sites


Dataotuan Helps

Analysts 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 benchmark

Daily 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 competition

Merchant Advisors

Select the most relevant daily deal website for your offer Help to decide discount & pricing etc based on Dataotuan data.


Dataotuan Announcements

Dataotuan Singapore is out of its soft launch, see singapore.dataotuan.com

Dataotuan Malaysia is out of its soft launch, see malaysia.dataotuan.com

Dataotuan Philippines is in soft launch, see philippines.dataotuan.com

Dataotuan Taiwan is in soft launch, see taiwan.dataotuan.com

Dataotuan offers from now on also the sales & data products for

Singapore, Malaysia and The Philippines

Australia & Taiwan are expected to be data ready in the coming month.

If you like Dataotuan to track a specific country, please contact us


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 daily deal website that unfortunately are not included due to not providing correct data access (api) is groupon.cn.

Please contact us if you have any questions/remarks related to this report.

Contact DataotuanWe’re happy to help you, please contact us at:

Chinese +86 13761796676 Email: [email protected] +86 13801660890 Email: [email protected]

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The Chinese Daily Deal Market in August - Quantity or Quality?

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