gaopeng gets into top 10 by revenue; qqtuan becomes a sales platform

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

Chinese Daily Deal Websites

2011 Sept. Report

Special: Gaopeng gets into top 10 by revenue;

QQtuan becomes a sales platform.

.

Data source: Dataotuan.com 2011 Sept. 1-30 Published: Oct. 25, 2011

dataotuan.com

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

Table of Contents

Specifications

Main Daily Deal Websites Analytics

Deals Overall Comparison

Top Deals Analytics

Special: Big Changes in September

Summary

About Dataotuan

Dataotuan Tracks & Helps

Contact


Specifications 1 – Data Definitions

1. All the data have been collected in the period Sept. 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 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 - Sept. 2011

Top Daily Deal Websites – Market Share 1

In terms of total revenue, 55tuan has the biggest market share (10.3%).

The top 20 deal sites in total account for 91.2% of the market share.

Over time QQtuan has turned more into a sales platform for other deal sites and

Group-buying agencies and will not be included anymore as a daily deal website*.

* In our effort to give a

representative view on

the Chinese Daily Deal

market, where we focus

on the pure daily deal

websites, QQtuan will not

be included in the

Dataotuan statistics

starting from September.


Top Daily Deal Websites – Market Share 2

Top 10 Websites (Revenue)

In the past few months the movement in the top 10 consisted mostly of the same

players changing position.

As QQ has been down (up) -graded to a sales platform, Gaopeng finally made it

into the top 10.

July Aug Sept

QQ 11.9% QQ 12.0% 55tuan 10.3%

55tuan 9.3% 55tuan 9.6% Lashou 10.0%

Manzuo 7.6% Lashou 9.0% Ftuan 9.2%

Meituan 7.1% Meituan 7.0% Meituan 8.8%

Dianping 7.1% Dianping 6.8% 58tuan 8.2%

Lashou 6.3% Manzuo 6.6% Dianping 6.6%

Nuomi 5.9% Nuomi 5.8% 24quan 5.4%

58tuan 5.8% 24quan 5.6% Nuomi 5.3%

Ftuan 5.6% 58tuan 5.0% Manzuo 5.3%

24quan 5.4% Ftuan 4.3% Gaopeng 3.7%

Total 72.0% Total 71.5% Total 72.7%


Sites Ranking Comparison

Top 10 Websites

55tuan is the no.1 in nr. of deals launched as well as in total revenue

Ftuan has made a big jump to nr. 3 in revenue.

Since July, 24quan has climbed the ranks in nr. sold and revenue.

Rank Nr. of Deals Total Nr. Sold Revenue

July Aug Sept July Aug Sept July Aug Sept

1 QQ QQ 55tuan QQ QQ Lashou QQ QQ 55tuan

2 55tuan 55tuan 24quan Meituan Lashou Meituan 55tuan 55tuan Lashou

3 24quan Lashou 58tuan 55tuan Meituan 55tuan Manzuo Lashou Ftuan

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

5 Lashou Gaopeng Meituan Ganji Ganji Nuomi Dianping Dianping 58tuan

6 Meituan 58tuan Gaopeng Nuomi Nuomi Ganji Lashou Manzuo Dianping

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

8 Ftuan Ftuan Manzuo Dianping 24quan Dianping 58tuan 24quan Nuomi

9 Manzuo Manzuo Nuomi Manzuo Dianping 58tuan Ftuan 58tuan Manzuo

10 Nuomi Nuomi Ganji 24quan Gaopeng Ftuan 24quan Ftuan Gaopeng


Sites Pricing strategy

The average discount of all the daily deals is 63%, the average price is 148 Rmb.

The discount of the top 10 deal sites ranges from 58% to 65%; The average price

ranges from 105 to 195 Rmb.

54%

56%

58%

60%

62%

64%

66%

58% 58%

65%

0

50

100

150

200

55tuanLashou

FtuanMeituan

58tuanDianping

24quan

Nuomi

Manzuo

Gaopeng

105

195

8

Average Price

Overall price/deal: 148 Rmb

Average Discount Overall average discount: 63%


Deals Overall Comparison

Average Price (Rmb)

May June July Aug Sept

Average Revenue (Rmb)

Comparing the statistics from May to September, the amount of deals keeps

increasing, but they generated again 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.

Nr. Deals Average Nr. Sold

45688 58509

102294

78752

118732 1325

588

806

454 398

13322 13570

20227 23984

17031

96 112

137 126

148

* QQtuan's data is not included.


Deals Category Comparison

Dining deals make up 29% of all deals launched, followed by Leisure deals (24%)

and Life service deals (22%).

Dining deals are the cheapest, with the smallest discount.

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

Average Nr. Sold 318 306 138 711

Average Price (Rmb) 80 144 235 130

Average Discount 53% 63% 81% 58%

Dining, 29%

Leisure, 24%

Life, 22%

Shopping, 20%

Others, 5%

Dining Leisure Life Shopping


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 Central China 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 33,036 238 144 3.6

North China 14,025 308 177 3.4

South China 13,028 207 158 3.5

Central China 10,006 236 116 3.4

Northeast China 8,089 205 137 3.9

Southwest China 6,621 285 146 3.6

Northwest China 3,624 298 148 3.5


Daily Deals Market

Region by Region

© Dataotuan - blog.dataotuan.com – July 2011

Nr. of Local Deals

Average Nr. Sold/Deal

137

4,549

152

9,007

16,154

180

38,757

16,999

11,585

8,304

149

177

118

156


Top Deals Analytics – Deal Categories

Life, 14%

Dining, 30%

Shopping, 21%

Leisure(Movie), 12%

Leisure

(Travel), 11%

Leisure

(Others), 5%

Others, 7%

Dining accounts for 30% of the highest grossing top deals. Leisure deals are the

2nd most popular category among the top deals.

Movies, a sub-category of Leisure, account for 12% of all the top 500 deals.

This percentage is lower than in July (28%) and Aug.(20%).

Because of the mid-autumn festival and the Oct. holiday, the deals related to

hotel/travel/outdoor activities were popular, accounting for 11% of the top deals.

Sept Aug July

Life 14% 17% 10%

Dining 30% 21% 26%

Shopping 21% 18% 21%

Leisure (Movie) 12% 20% 28%

Leisure (Travel) 11% 9% 9%

Leisure(Others) 5% 4%

Others 7% 11% 6%

28%


Top Deals Analytics – Deal Sites

Dianping, 20%

Meituan, 15%

Nuomi, 9%Manzuo, 7%

55tuan, 6%

Juhuasuan, 6%

24quan, 4%

Ftuan, 4%

Ganji, 3%Gaopeng, 3%Didatuan, 3%58tuan, 3%Lashou, 2%

Dianping, as in the past few months, again has the biggest percentage among

the top deals, followed by Meituan, Nuomi and Manzuo.

September August

Dianping 20% Dianping 19%

Meituan 15% Nuomi 13%

Nuomi 9% Manzuo 12%

Manzuo 7% Meituan 9%

55tuan 6% QQtuan 7%


• QQtuan becomes a sales platform

• Gaopeng gets into top 10 on revenue

QQtuan Aggregates Group-buying “Stores”

Powered by

Joint-ventured by

Special: Big Changes in September


Rank Nr. of Deals Revenue

May June July Aug May June July Aug

1 QQ QQ QQ QQ Lashou QQ QQ QQ

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

3 Meituan Lashou 24quan Lashou 24quan Manzuo Manzuo Lashou

4 55tuan Meituan Gaopeng 24quan 58tuan 24quan Meituan Meituan

5 Groupon 24quan Lashou Gaopeng Dianping Nuomi Dianping Dianping

6 24quan Gaopeng Meituan 58tuan QQ Ftuan Lashou Manzuo

7 58tuan 58tuan 58tuan Meituan Ftuan Dianping Nuomi Nuomi

8 Manzuo Ftuan Ftuan Ftuan Nuomi 58tuan 58tuan 24quan

9 Ftuan Manzuo Manzuo Manzuo Manzuo 55tuan Ftuan 58tuan

10 Gaopeng Nuomi Nuomi Nuomi 55tuan Lashou 24quan Ftuan

QQtuan becomes a sales platform (1)

When QQtuan started (2010 Jul.), the deals launched on QQtuan were unique,

same as on the other deal sites.

2011 Mar., the join venture between QQ and Groupon – Gaopeng went online.

Since 2011 Q2, QQ often co-launched deals with Ftuan, Liketuan, 58tuan,

Shuangtuan, since 2011 Q3, also included Gaopeng into co-launching partners.

From 2011 Jun. QQtuan became the market leader

From September QQtuan turned into a Group-buying sales platform.


Local service deals are mostly provided by the other deal websites, agencies

or other 3rd parties.

17



QQtuan itself only provides deals like lucky draw, virtual currency, and very

occasionally online shopping (material goods).

The number of unique deals account for less 10% of the total deal on QQtuan.



QQtuan is one of deal suppliers on tuan.QQ.com, next to dozens of the other

suppliers, such as various deal sites, agencies, etc.



Gaopeng gets into top 10 on revenue

Ranking

of Nr. of Deals

Ranking of Total

Nr. Sold

Ranking of Total

Revenue

Market Share on

Revenue

2011-May 10 10 19 0.9%

2011-Jun. 6 15 12 2.2%

2011-Jul. 4 7 11 3.0%

2011-Aug. 5 10 11 4.2%

2011-Sep. 6 11 10 3.7%

In terms of Nr. of Deals launched, Gaopeng has ranked in the top 10 since May.

But its rankings in Total Nr. Sold and Revenue have been lagging behind.

It seems that Gaopeng launched a lot of deals, but at the same time the deal

quality is in general lower than the other top deal sites; meanwhile the

percentage of failed deals (< 5 sales) is high. (This figure in July was 29.4%)

September is the first month that Gaopeng gets into top 10 on Revenue.


21

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 September, 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.

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.

2. The movement in the top 10 consisted mostly of the same players

changing position.

55tuan is the no.1 in nr. of deals launched as well as in total revenue.

Ftuan has made a big jump to nr. 3 in revenue. Gaopeng finally gets into top 10.

In Q3, 24quan has been climbing the ranks step by step in nr. sold and revenue.


Summary 2 – Special

4. QQtuan becomes a group-buying sales platform and takes more control:

When QQtuan started (2010 Jul.), the deals launched on QQtuan were unique.

2011 Mar., the join venture between QQ and Groupon – Gaopeng went online.

From 2011 Q2, QQ often co-launched deals with other deals sites, such as Ftuan.

2011 Mar./Jun., QQ (Tencent) invested twice in Ftuan (one the top 10 deal sites).

From 2011 Jun. QQtuan became the market leader, with a far leading market

share in revenue.

From 2011 Sep., tuan.QQ.com turned into a Group-buying sales platform.

QQtuan is one of the deal suppliers on tuan.QQ.com, next to dozens of the other

suppliers, such as various deal sites, agencies, etc.

5. Gaopeng gets into top 10, will it go on growing?

In terms of Nr. of Deals launched, Gaopeng has ranked in top 10 since May.

But its rankings in Total Nr. Sold and Revenue have been lagging behind.

It seems that Gaopeng launched a lot of deals, but at the same time the deal

quality is in general lower than the other top deal sites; meanwhile the

percentage of failed deals (< 5 sales) is high. (This figure in July was 29.4%)

September is the first month that Gaopeng gets into top 10 on Revenue.

Is that a good sign before Groupon IPO?


About Dataotuan.com

Dataotuan, 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 & 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.

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 Advisor:

Select the most relevant daily deal website for your offer

Help to decide discount & pricing etc based on Dataotuan data.


Dataotuan 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 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, The Philippines and Taiwan

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

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


Dataotuan Announcements - 2

Dataotuan has Deal maps for all countries


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.

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