More group buying sites in China close, but market goes up in value

The number of group buying sites in China has more than halved over the past two years

China's group buying market continues to shrink, with the number of players in operation declining by close to 1,000 sites over the past year.

At the end of 2012, the total number of group buying sites in the country fell to 2,695, down from the 3,652 websites at the beginning of the year, according to a new report from the China e-Business Research Center.

The country's group buying industry boomed in 2010, when the first websites came online and modeled their business after Groupon in the U.S. In total the nation has generated 6177 group buying sites.

But over the past two years, more than half have closed due to fierce competition, with profit margins for the businesses low, according to analysts. Others have merged with rivals, including Groupon's own Chinese site, GaoPeng, which joined forces with local player FTuan last year.

Despite the shrinking number of sites, China's group buying market is growing in value. In 2012, total market transactions on the sites reached 34.8 billion yuan (US$5.5 billion), up 61 percent from the previous year.

About 42 percent of those transactions are being made from sites that use group buying as an additional business to their own larger e-commerce activities. This includes the Chinese companies Alibaba Group and 360buy. Groupon's Chinese site grabbed 7 percent of all transactions.

About 83 million people in China use group buying sites, up from 64 million at the end of 2011, according to the China Internet Network Information Center.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags e-commerceGrouponinternet

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Michael Kan

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?