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2013 Q1 – China Daily Deal Market Report – A Stable Start

DTT — Thu, 16 May 2013 09:43:14 +0000

The revenue of the Chinese daily deal market in 2013 Q1 is more than 10.3 billion RMB, hardly any increase compared to 2012 Q4. One reason might be people buy less during the Chinese New Year holiday.

The Consolidation continues with the Top deal sites.
Looking at the trends of the overall market share of the top 5 and top 10 sites, we see a steady increase.

In the past 4 quarters, the Nr. 1 and 2, Juhuasuan and Meituan haven’t given up their positions, while furious competition occurred among Nr.3-6.

Meituan, Dianping & Lashou stay in the top 3 for local deals’ revenue.

Juhuasuan is not only the leader, but the emperor of shopping (product) deals. The revenue of Juhuasuan shopping deals accounted for 62.7%.

When cross analyzing Beauty/Massage & Hotpot/BBQ (2 popular service deal categories) with the 4 big cities (Beijing, Shanghai, Guangzhou & Chengdu), we see even the market leaders like Meituan, Lashou have their weak points.

For example, in terms of market share on Beauty/Massage, Dianping is strong in all 4 cities, and outstanding in Shanghai – its headquarter.
Meituan is, relative to its overall market share, weak in all the 4 big cities.
Lashou is doing well in Guangzhou, but under performing in the other 3 cities.

In the beginning of 2013, Gaopeng, Ftuan and QQtuan (Entity of Tencent) merged together and relaunched New Gaopeng; Renren announced that they will invest more in Nuomi.

Besides that, there is no much new news about funding in the Chinese daily deal market.

The daily deal sites have to survive by making their operation more efficient.
One of the keys to grab more market share will be to better use data to understand the weak and strong points of themselves as well as their competitors.

To know more about Dataotuan and Dataotuan data services, please check Datatuan

Please find the full China 2013, Q3 Daily Deal Market Report on Speakerdeck or alternatively on Slideshare

Popular Local Services Deals – How well does Meituan do?

DTT — Mon, 18 Feb 2013 01:32:18 +0000

With the vast amount of data we gather, we know in detail how well all the players did in 2012.

We looked closer at the top 5 players in the 3 biggest Chinese cities, Beijing, Shanghai and Guangzhou to see how well they did.

By cross-analyzing data of the most popular local services (hotpot and movies) with the top deal websites we found that:

Meituan is, relative to its overall market share, very weak in Beijing.
Nuomi, Lashou and 55tuan all have space in Shanghai & Guangzhou to improve.
Dianping is strong in all 3 cities, and outstanding in its base Shanghai.
Nuomi is doing well in the cinema’s in Beijing.

To see the cross analysis for Hotpot, please see our full report.

Doing the cross analysis also shows that each of these deal websites still has opportunities to grow or take market share from the others.

This is a good sign as the market can only benefit from more competition.

The year 2013 is already well on its way and a new year of the Snake has just started.

As mentioned earlier we will come with our predictions for 2013 in the coming days.

See also our other articles on the 2012 China Daily Deal Market Report

Local service deals are (still) the foundation of daily deals

DTT — Mon, 18 Feb 2013 01:31:37 +0000

Local service deals stood at the basis of the first daily deals.

3 years ago all deals came from merchants having a physical presence – a real location.

The restaurant that wanted more customers and the hair salons that had empty appointment sheets were all local venues.

The fact these merchants were local, combined with all the attractive marketing facets of daily deals, (big discount, need for a minimum number of buyers, temporary availability) made it almost a must have for consumers.

Trying out a restaurant for half of the price might be worth it, even if it could in the end disappoint. Purchasing a paint ball activity with your friends for a good price, sure why not.
And definitely getting cheap movie tickets, especially in China where a regular ticket goes for as much as 100 Rmb (16 USD) was and still is an instant hit.

These local deals are still very popular in China and are what distinguishes a “real” daily deal website from a regular E-commerce operation. Offering good quality local deals will be decisive in keeping and gaining market share.

The leaders in Service deals are Meituan, Dianping, Nuomi, Lashou and 55tuan.

In 2012 “Movies” and “Hotpot” deals (Chinese fondue would explain it the best) were the most popular overall.

See also our other articles on the 2012 China Daily Deal Market Report

Juhuasuan dominates product daily deals

DTT — Mon, 18 Feb 2013 01:30:31 +0000

The difference between sourcing a service deal and a product deal is that for the former a sales person actually needs to convince a very busy merchant to offer steep discounts in return for new and hopefully regular customers, while for the latter it’s a matter of selecting items from product feeds that several product deal suppliers have prepared.

The cost of sourcing a product deal is much lower so it has become an easy choice to include products, actually many products, in the daily offering.

The revenue of product deals accounted for 28% of the total deal revenue in 2012 and the bestsellers can be found in the categories clothing/footgear and food/beverages.

The king of product daily deals, no surprise here as well, was and likely will be for the coming year Juhuasuan, Taobao.com’s daily deal site.

Leveraging merchants, users and their traffic Juhuansuan will be hard to beat (to be beaten) when it comes down to product deals. In the service deals they play a much smaller role.

In Q4, the revenue of Juhuasuan shopping (product) deals was more than the total revenue (of product deals) of all its competitors combined, and accounted for 88.1% of the product deals revenue.

See also our other articles on the 2012 China Daily Deal Market Report

Travel deals are flying high

DTT — Mon, 18 Feb 2013 01:29:50 +0000

The revenue of travel deals was over 2 billion (9.6% of total deal revenue) in 2012.

Typical local service deal sites like Dianping/Meituan, increased the percentage of travel deals among all the deals they launched.

This will likely go on in 2013, if only as there’re so many hotels that suffer from a low occupancy rate that daily deals are one good method to fill up the rooms.

It will put the daily deal sites more and more in the same waters as the traditional travel websites like Ctrip and Elong. Not surprisingly these travel sites also have their own daily deals.

See also our other articles on the 2012 China Daily Deal Market Report

2012 – It’s getting lonelier at the China’s Daily Deals Top.

DTT — Mon, 18 Feb 2013 01:28:53 +0000

There are 3 leaders, Juhuasuan, Meituan and Dianping, making up tier 1.

To be a member of the Tier 1 club monthly revenue has to be over 2 billion Renminbi.

Based on Dataotuan’s data, the top 3 accounted for 55% of the total revenue.

If the other 7 of the Top 10 websites are included more than 90% of the market is already taken, leaving less than 10% for all the other players.

The daily deal websites, similar to last year, were launching the most deals in East China, far more than in any other region. Southwest and especially Northwest China were trailing far behind.

This may change in the coming years as there seems to be developing more interest in tier 3/4 cities. The mobile Internet (especially smart phones) and ways to pay by mobile will help here.

See also the other articles on the 2012 China Daily Deal Market Report

The Chinese Daily Deal Market in 2012

DTT — Wed, 30 Jan 2013 10:16:26 +0000

2012 has ended but the deal industry is still going strong, at least when it concerns launching new deals and finding new categories to expand the deal portfolio.

Like we did last year we have published our 2012 China Daily Deal Market report.

We have looked at the top players, the trend of travel deals as well as the role Juhuasuan plays in product daily deals.

As the “original” daily deals were all local we also look at the role local service deals still have in the groupbuying world.

One of our goals is to know which deals perform well in what city offered by what deal site. We have added a cross analysis for Hotpot and Movie deals of the Top 5 deal sites in Beijing, Shanghai and Guangzhou to find out their weak and strong points.

Over the coming 5 days we will introduce the different parts of the 2012 Daily Daily Market in China report.

We will end with our predictions for the year of the Snake.

That’s one of the advantages of China. 2 New Years, is 2x predictions.

The full report can be found on Speakerdeck or see hereunder the embedded version.

Daily Deal Industry in China Q3, 2012 inc. Travel Special

DTT — Thu, 22 Nov 2012 07:30:56 +0000

We have just finished our latest report on Q3, 2012 on the Daily Deal Industry in China
The highlights are:

In Q3 2012, the revenue of the daily deals is about 7.6 billion.
The Top 20 websites account for 98.3% of the market
Overall Juhuasuan is still the no.1 (this is for Service Deals as well as Product Deals).
The leaders in Service deals are Meituan, Dianping and Nuomi
Shopping was the most popular category in Q3; Clothing/Footgear ranked top 1.

Special:

Travel is the new “hot” category.
About 60,000 travel deals have been launched in 2012 Q3.
Travel deals revenue is nearly 600 million, 9% of the total revenue in 2012 Q3.
Even for typical local service deal websites, such as Dianping/Meituan, the share of travel deals is growing.

Please find the China 2012, Q3 Daily Deal Market Report on

Slideshare
Speakerdeck

China Daily Deal Customer Satisfaction Survey 2012, Q2

DTT — Thu, 09 Aug 2012 04:09:13 +0000

We wanted to know more about the daily deal experiences in China.
Almost 2000 Chinese provided us in May and June 2012 with insights in the way they buy deals, whether they like, which sites they recommend and if they recommend deals to others.

The main findings are

Chinese consumers are heavy buyers of daily deals and intend to even buy more., even though 1/3 of the merchants didn’t deliver a satisfying experience for the buyer.
The most recommended websites are Juhuasuan, Meituan, Lashou and Dianping
Chinese deal buyers are active recommenders using IM & Face-to-Face communication.

The presentation can also be found on Speakerdeck

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We’re currently doing the same survey worldwide.

Please participate and spread the word. You can find the survey here
https://www.surveymonkey.com/s/PH5FTGX

Daily Deal Industry China 2012, Q2 – Juhuasuan is doing well

DTT — Thu, 09 Aug 2012 03:52:02 +0000

We have just finished our latest report on Q2, 2012 on the Daily Deal Industry in China

The highlights are:

Overall Juhuasuan is the no.1 (this is for Service Deals as well as Product Deals).
In Q2, 2012 revenue of Juhuasuan shopping deals is more than the total revenue of all its competitors combined.
Taking out Product deals the leaders in Service deals are Meituan, 55tuan and Dianp- ing.
The top 20 deal websites have 97.1% of the market.

The presentation can also be found on Speakerdeck