The Chinese Daily Deal Market in December 2011, Special - 2011 overview China and SE-Asia-dec-2011

2011 Group-buying Market Report

China, Taiwan & SE-Asia

Special 1: Review 2011 Chinese Market

Special 2: SE-Asia Group-buying Market Overview

Data source: Dataotuan.com 2011 Dec. 1-31 Published: Jan. 18, 2012

Dataotuan.com

© Dataotuan - blog.dataotuan.com – www.dataotuan.com - Dec. 2011 2

Table of Contents

Specifications

Main Daily Deal Websites Analytics

Deals Overall Comparison

Regions & Cities

Top Deals Analytics

Summary

Special: Review 2011 & SE-Asia Market Overview

About Dataotuan

Dataotuan Tracks & Helps

Dataotuan Sells

Dataotuan Announcements – Countries, Maps, Mobile

Contact


Specifications 1 – Data Definitions

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

2. Number of deal sites tracked: 125

3. Number of cities tracked: 345

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. Real

estate and car deals are not included in the top deals as they are more

likely to be advertisements instead of the real online shopping deals.

⑤ 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

© Dataotuan - blog.dataotuan.com – www.dataotuan.com - Dec. 2011

Top Daily Deal Websites – Market Share 1 In terms of total revenue, Meituan still has the biggest market share (12.6%).

The top 20 deal sites account for 91.1% of the market share.

Meituan, 12.6%

55tuan, 10.3%

Dianping, 8.1%

Lashou, 7.7%

58tuan, 7.5%Nuomi, 7.1%

Juhuasuan,

5.7%

Ganji, 4.3%

Didatuan, 3.1%

Manzuo, 4.2%

Ftuan, 4.8%

Ayatuan, 2.6%

Gaopeng, 2.8%

Pingtuan, 1.1%

Juqi, 2.4%

Gocn, 2.1%Shuangtuan, 1.6%

Tuanok, 0.8%361tuan, 0.8%

Others, 8.9%

24quan, 1.4%

5

Deal Websites Market Share Dec. 2011


Top Daily Deal Websites – Market Share 2

Top 10 Websites (Revenue)

Meituan continues to rank nr. 1; Ganji gets back in the top 10.

Meituan/55tuan/Dianping’s market shares keep growing.

Oct Nov Dec

Lashou 12.7% Meituan 12.5% Meituan 12.6%

Meituan 12.0% Lashou 9.7% 55tuan 10.3%

55tuan 9.3% 55tuan 9.6% Dianping 8.1%

58tuan 9.1% 58tuan 7.6% Lashou 7.7%

24quan 6.0% Nuomi 6.8% 58tuan 7.5%

Dianping 5.4% Dianping 6.7% Nuomi 7.1%

Nuomi 5.3% Ftuan 6.2% Juhuasuan 5.7%

Manzuo 3.9% Juhuasuan 4.4% Ftuan 4.8%

Ftuan 3.7% Manzuo 3.8% Ganji 4.3%

Ganji 3.5% Didatuan 3.7% Manzuo 4.2%

Total 70.9% Total 71.0% Total 72.3%


Sites Ranking Comparison In the last two months, Meituan has been ranking nr. 1 in terms of Total Nr.

Sold and Revenue.

In December, Dianping jumps to nr. 3 (Revenue), their best spot till now.

Rank

Nr. of Deals Total Nr. Sold Revenue

Oct Nov Dec Oct Nov Dec Oct Nov Dec

1 55tuan 55tuan 55tuan Meituan Meituan Meituan Lashou Meituan Meituan

2 24quan Lashou 58quan Lashou Nuomi 55tuan Meituan Lashou 55tuan

3 58quan 58quan Lashou 55tuan 55tuan Lashou 55tuan 55tuan Dianping

4 24quan Meituan Meituan Nuomi Lashou Nuomi 58tuan 58tuan Lashou

5 Meituan 24quan Ftuan Ganji Ganji Ganji 24quan Nuomi 58tuan

6 Gaopeng Ftuan Juhuasuan Manzuo Manzuo 58tuan Dianping Dianping Nuomi

7 Ftuan Didatuan Didatuan 58tuan 58tuan Dianping Nuomi Ftuan Juhuasuan

8 Manzuo Gaopeng Gaopeng 24quan Mengmai Manzuo Manzuo Juhuasuan Ftuan

9 Nuomi Juhuasuan 24quan Dianping Dianping Didatuan Ftuan Manzuo Ganji

10 Didatuan Nuomi Nuomi Mengmai 24quan Mengmai Ganji Didatuan Manzuo

Top 10 Websites

7


The average price overall is 140 Rmb, the average discount overall is 62%.

The average price ranges from 96.8 to 287.3 Rmb; The discount of the top 10

deal sites ranges from 56% to 65%.

96.8

287.3

0

50

100

150

200

250

300

350

Meituan 55tuan Dianping Lashou 58tuan Nuomi Juhuasuan Ftuan Ganji Manzuo

Average Price Overall price/deal: 140 Rmb

56%

65%

50%

52%

54%

56%

58%

60%

62%

64%

66%

Meituan

55tuan

Dianping

Lashou

58tuan

Nuomi

Juhuasuan

Ftuan

Ganji

Manzuo

Average Discount

Overall average discount: 62%

Top 10 Sites Pricing strategy

8


Shopping,

18.2%

Others, 5.7%

Dining,

31.8%

Life, 21.7%Leisure,

22.6%

Dining Leisure Life Shopping

Dining deals make up 31.8% of all deals launched, followed by Leisure deals

(22.6%) and Life Service deals (21.7%).

Dining deals are still the cheapest, but the difference this time is less because

of many end of the year dinner deals.

Life services deals are the most expensive, even after the biggest discount.

Average Nr. Sold 241 248 101 1025

Average Price (Rmb) 101.8 168 184.5 105.5

Average Discount 52% 62% 81% 61%

Deals Category Comparison

9


Daily Deals in Different Regions Local deals (Dining, Leisure and Life services) account for 76.1% of the total

number of daily deals.

The amount of daily deals launched in East China are far more than the other

regions. Southwest and especially Northwest China are trailing behind.

In South China the average deal price is the highest, in Central China it's the

lowest.

Nr. of Local

Deals

Average Nr.

Sold/ Deal

Average Price/

Deal (Rmb)

Average

Discount

East China 48473 188 144.9 3.7

NorthChina 20734 269 149.6 3.5

South China 18442 156 182.6 3.6

Central China 13346 183 110.7 3.7

Northeast China 11737 167 107 3.8

Southwest China 9685 196 158.1 3.8

Northwest China 5387 211 125.3 3.5

10


Daily Deals Market

Region by Region

Nr. of Local Deals

Average price/Deal

107

5,387

125.3

11,737

20,734

149.6

48,473

18,442

13,346

9,685

144.9

182.6

110.7

158.1

11


Average Nr.

Sold/Deal

Average

Price/Deal

(Rmb)

Average

Discount

Nr.

Deals

Total Nr.

Sold Revenue

Tier 1

Beijing 309 187 3.4 9937 3070648 194039887

Shanghai 326 248 3.2 6342 2064361 163119709

Guangzhou 201 185 3.6 5109 1024491 72118172

Shenzhen 186 203 3.4 4048 754470 60344636

Tier 2

Tianjin 295 158 3.3 4141 1221245 59511999

Chongqing 240 145 4 3369 808092 51955324

Hangzhou 182 146 3.5 3141 572908 44592693

Xiamen 123 189 3.8 2494 306996 17723255

Revenue wise, the group-buying market in Tier 1 cities is much more

developed than in Tier 2 cities, especially Beijing and Shanghai are far ahead.

In terms of deal quality, Shanghai is the best, with the biggest Average Nr. Sold

per deal, followed by Beijing.

Daily Deals in Different Cities

12


Top Deals Analytics – Deal Categories

Shopping accounts for 36.6% of the highest grossing top deals. Dining deals

are the 2nd most popular category among the top deals (30.9%).

Movies, which were very popular during the summer holiday, became hot

again, as the end of the year is always the top season for new movies.

Dining,

30.9%

Leisure,

21.8%Life, 9.0%

Shopping,

36.6%

Others,

1.7%

Top Deals – Dec.

Shopping-Clothing/Footgear 11.8%

Dining-Hotpot/BBQ 10.2%

Leisure-Movie 9.5%

Shopping-Household 5.1%

Life-Photography 3.3%

Dining-Buffet 3.2%

Leisure-Travel 3.2%

* Real estate and car deals are not included in the top deals as they are

more likely to be advertisements instead of real online shopping deals.


Top Deals Analytics – Deal Sites

The 3 deal sites that contributed the most to the Top deals are the same as in

November, but Dianping got back to no.1 (Meituan ruled the previous 2 months)

On the other hand, Lashou, Didatuan and 24quan took a much smaller share

among the top deals.

Dianping,

18.8%

Meituan, 17.4%

Nuomi, 14.9%Juhuasuan,

6.7%

Ganji, 6.7%

55tuan, 5.4%

Manzuo, 4.7%

58tuan, 3.2%

Ayatuan, 3.5%

Ftuan, 3.3%

Gaopeng, 2.6%

24quan, 0.2%

Others, 8.9%

Didatuan, 1.9%

Lashou, 1.8%% among the top deals

Dec Nov

Dianping 18.8% 14.4%

Meituan 17.4% 17.8%

Nuomi 14.9% 12.6%

Didatuan 1.9% 3.7%

Lashou 1.8% 3.0%

24quan 0.2% 0.9%


If you want to enter a new city you want to know;

What kind of deals are popular in this city

Who are the good merchants

Where can you find them

What is their daily deal history

Dataotuan – Sales Tools 1 (Merchants Analytics)

Who are your competitors

Which merchants are they cooperating with

What is their pricing strategy to generate a popular deal

Dataotuan can help you with the Sales Tool – Merchants Analytics

Contact [email protected]

We offer: Customized reports, merchant details, raw/live data & more.

15


Summary – 2011 Dec. China Market Sumary

3. Dianping, Meituan & Nuomi keep the top 3 positions of the top deals

ranking list.

The 3 deal sites that contributed the most to the top deals are the same as

November: Dianping, Meituan and Nuomi. But Dianping got back to no.1.

On the other hand, Lashou, Didatuan and 24quan took a much smaller share

among top deals.

1. Meituan is leading, Dianping got 3rd place & Ganji got back in the top 10.

Meituan continues leading in revenue after growing steadily for months.

Dianping ranks at the 3rd place for the first time.

Ganji got into the top 10 again.

16

2. There is a big difference among different regions & cities in China.

On the region level, the amount of daily deals launched in East China are far

more than the other regions.

Comparing different city tiers, the group-buying market in Tier 1 cities is much

more developed than in Tier 2 cities, especially Beijing and Shanghai are far

ahead.

In terms of deal quality, Shanghai is the best, with the biggest Average Nr. Sold

per deal, followed by Beijing.


If you are running a deal site, you want to know:

What is the market status in general and in a specific city

Are you doing better than the average

Should you adjust your pricing strategy according to the market trends

Should you change the products combination

Dataotuan – Sales Tools 2 (Website Analytics)

Who are your competitors

How competitive are they

What is their sales strategy

What is their pricing strategy

Dataotuan can help you with the Sales Tool – Deal Website Analytics


We offer:

Customized reports, merchant details, raw data, live data and more.

17

Dataotuan can help you with the Sales Tool – Deal Website Analytics




1. The market is still growing, average number sold is stabilizing.

The number of deals launched increased dramatically quarter by quarter.

The main reason was the rising of local service deals.

From Q1 to Q3, the average Nr. Sold kept dropping sharply. But it seems

stabilized in Q4.

2. A market concentration is taking place by the top deal sites, consisting of

independent and affiliated sites.

2011 is the year that the Chinese Group-buying market got more concentrated.

The top 10/20 deal sites have taken an increasingly bigger market share.

The independent sites are leading for the moment, but it seems that the

affiliated deal sites are catching up.

3. Some Daily Deal Websites are changing their biz-model to survive in this

very competitive market.

Tuned/Turning into Sales platform. Ex.: QQtuan, Juhuasuan (from Taobao)

Turned/Turning into Shopping Mall. Ex.: 55tuan, Lashou.

Special：Review Chinese Daily Deal market 2011

18



358,085

256,407

124,602

52,309

Q1 Q2 Q3 Q4

Nr. Deals in total

Local Service DealsShopping Deals

The number of deals launched increased dramatically quarter by quarter.

The main reason of the increase was the increase in local service deals.

From Q1 to Q3, the average deal price increased slightly, and the average Nr.

Sold kept dropping sharply. But in Q4, both the average price and the average

Nr. Sold seem stabilized.

137.4141.2110.9109.5

497531

1,015

1,974

Q1 Q2 Q3 Q4

Average Price

Average Nr. Sold

Nr. Deals 2011 Average Price/Nr. Sold 2011

19

* Some online shopping deal sites, such as Xiutuan.com, are not included in the statistics.

*


Meituan, 10.8%

Lashou, 10.7%

55tuan, 8.2%

58tuan, 8.1%

Dianping, 7.4%

Manzuo, 6.3%Nuomi, 6.2%

Ftuan, 5.9%

24quan, 5.3%

Didatuan, 2.9%

Top11-20, 16.7%

Others, 11.5%

2 of the earliest independent daily deal sites, Meituan and Lashou are leading

in total revenue in 2011.

Overall in 2011, the top 10 deal sites take 71.8% of the total revenue, while the

top 11-20 takes 16.7% of the market share.


20

Deal Websites Market Share in 2011


72.6%

93.2%

73.5%72.6%

60.5%

90.6%85.5%

71.0%

Q1 Q2 Q3 Q4

Top 10 Top 20

2011 is the year that the Chinese Group-buying market got more and more

concentrated.

The top deal sites take a bigger and bigger market share.


21


Special：Chinese Daily Deal Websites 2011

Different types of Chinese daily deal websites compete furiously in China.

The independent sites are leading for the moment, but it seems that other

types are catching up.

Ganji Gaopeng Didatuan Kutuan

Manzuo 24quan 55tuan Didatuan

Juhuasuan Nuomi Ftuan Ftuan

Ftuan Manzuo Nuomi 24quan

Nuomi 58tuan Manzuo Nuomi

Dianping Ftuan Dianping Dianping

58tuan Dianping 24quan 58tuan

Lashou Meituan 58tuan Manzuo

55tuan Lashou Meituan Meituan

Meituan 55tuan Lashou Lashou

Q4 2011 Q3 2011 Q2 2011 Q1 2011

Chinese Daily Deal Website Revenue Ranking

2011

Independent Daily Deal Websites: Lashou, Meituan, Manzuo, Ftuan, etc.

Group-buying channels of life service websites: Dianping, 58tuan, etc.

Extended business/Spin-off of web portals or SNS: Nuomi, Kaixintuan, etc.

Deal channel/Spin-off of e-commerce website: Juhuasuan, 360buy, Xiutuan, etc.

22


2 – Sales Platform

1 – Shopping Mall

Due to the furious competition and very low margins, some Daily Deal Websites

are changing their business model to diversify. 2 directions they are going:

Sales platform: any daily deal sites/suppliers can sell deals on it. ex. QQ, Juhuasuan

Shopping Mall: merchants can DIY create and sell deals on this site. ex. 55tuan, Lashou

Special：Chinese Daily Deal Websites 2011

© Dataotuan - blog.dataotuan.com – www.dataotuan.com - Nov. 2011

Dataotuan also

tracks daily

deals in other

Asian countries

and Oceania.

DTT Web & Data available

DTT Web available

DTT will cover soon

Dataotuan Tracks Group-buying Asian Market


1. Deals category comparison

Beauty-massage deals are very popular in Asia. They have the biggest

percentage in deals number in Singapore, Malaysia, Philippines and Taiwan.

Travel deals are very often launched as well. They have the 2nd biggest

percentage in deals number in Singapore, Malaysia, Philippines and China.

People in both China Mainland and Taiwan like dining deals. The difference is

the Mainlanders are fan of hotpot, while Taiwanese have a sweet tooth (for

Desserts).

2. Deals price and Nr. Sold comparison (All prices are calculated in US $)

China has the lowest average price ($21.7), but with the biggest Nr. Sold per

deal (460).

The average price per deal in Singapore, Philippines and Malaysia is much

higher than in China and Taiwan. The reason might be the bigger percentage

of Life services deals, which are more expensive than Dining deals.

Singapore has the highest average price ($58.8). Malaysia the smallest Nr.

Sold per deal (134).

Asian Market Overview

25



DTT Web available

DTT will cover soon

Asian Market Overview – Category

26

21% 8% 7%

Beauty Travel Hair salon

21% 17% 6%

Beauty Travel Electrical

11% 9% 7%

Beauty Dessert Food


Avg. Nr. Sold/deal: 289

Avg. Price (US $): 23.5










DTT Web available

DTT will cover soon

All prices in US dollar

Asian Market Overview – Avg. Price and Sold

27


If you have a financial interest in the Group-buying Market,

you want to know:

What is the market status in general

Estimates of the Gross Revenue of the main Daily Deal websites.

Revenue trends for the main Daily Deal websites

Daily Deal Winners & Losers benchmark

Dataotuan – Investor Tool

Deal data including merchant, price, sold count, category, sub category

Pricing trends & Strategy

Category trends

Location trends

28

Dataotuan can help you with the Investor Tool – Investor Analytics




About Dataotuan.com

Dataotuan, a unique daily deal aggregator and analytics platform in Asia & Oceania

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 China Tracks & Collects

Dataotuan 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.

345 cities in Mainland China(*)

5000 – 10000 new deals every day

Dataotuan Collects

125 of the main Daily Deal Sites


Dataotuan Sells

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


Dataotuan New Countries Announcements – 1

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 out of its soft launch, see philippines.dataotuan.com

Dataotuan Taiwan is out of its soft launch, see taiwan.dataotuan.com

Dataotuan Australia is out if it’s soft launch, see australia.dataotuan.com

Dataotuan New Zealand is in a very soft launch, see newzealand.dataotuan.com

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

Singapore, Malaysia, The Philippines, Taiwan & Australia

Indonesia, HK, The Middle East & Africa are expected to be data ready soon.

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


Dataotuan Map Announcements – 2

Dataotuan has Customizable Deal Maps for each Country


Dataotuan Mobile Announcements – 3

Dataotuan has Mobile, location aware HTML5 websites for each Country


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

QQ changed its business mode.It’s not a daily deal site anymore.So Dataotuan excludes QQ's data from 2011 Sep.

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

Contact Dataotuan

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

Chinese +86 13761796676 Email: [email protected]

English +86 13801660890 Email: [email protected]

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Technology

The Chinese Daily Deal Market in December 2011, Special - 2011 overview China and SE-Asia-dec-2011