the chinese daily deal market in july - failed deals analytics

© Dataotuan - blog.dataotuan.com – July 2011

Chinese Daily Deal Websites

2011 July Report

Special: Failed deals, they happen more.

dataotuan.com

Data source: Dataotuan.com 2011 Jul. 1-31Published: Aug. 25, 2011

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

Table of Contents

Specifications

Main Daily Deal Websites Analytics

Deals Overall Comparison

Top Deals Analytics

Failed Deals Analytics

Summary

About Dataotuan

Dataotuan Tracks & Helps

Contact


Specifications 1 – Data Definitions

1. All the data have been collected in the period July 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 Failed deals – the deals that have sold less than 5 during the valid

period.

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

In terms of total revenue, QQ has the biggest market share (11.9%).

QQ's market share is even bigger if its cooperation with 5 top 20 websites are

included. QQ distributes often deals from Ftuan, Liketuan, 58tuan and

Shuangtuan. Gaopeng is a joint venture between QQ and Groupon.com.


Top Daily Deal Websites – Market Share 2

Top 10 Websites (Revenue)

May June July

Lashou 14.4% QQ 10.0% QQ 11.9%

Meituan 8.2% Meituan 8.6% 55tuan 9.3%

24quan 7.6% Manzuo 8.4% Manzuo 7.6%

58tuan 7.5% 24quan 8.2% Meituan 7.1%

Dianping 6.5% Nuomi 7.9% Dianping 7.1%

QQ 5.9% Ftuan 7.0% Lashou 6.3%

Ftuan 5.5% Dianping 7.0% Nuomi 5.9%

Nuomi 5.2% 58tuan 6.6% 58tuan 5.8%

Manzuo 4.9% 55tuan 6.0% Ftuan 5.6%

55tuan 3.6% Lashou 5.1% 24quan 5.4%

Total 69.3% Total 74.8% Total 72%

The top 10 remained the same, although some changed positions.

Lashou’s market share increased a bit after their drop in June.


Sites Ranking Comparison

7

RankNr. of Deals Total Nr. Sold Revenue

May June July May June July May June July

1 QQ QQ QQ Sina Meituan QQ Lashou QQ QQ

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

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

4 55tuan Meituan Gaopeng QQ Nuomi Lashou 58tuan 24quan Meituan

5 Groupon.cn 24quan Lashou Nuomi 55tuan Ganji Dianping Nuomi Dianping

6 24quan Gaopeng Meituan 24quan 58tuan Nuomi QQ Ftuan Lashou

7 58tuan 58tuan 58tuan 55tuan 24quan Gaopeng Ftuan Dianping Nuomi

8 Manzuo Ftuan Ftuan 58tuan Aibang Dianping Nuomi 58tuan 58tuan

9 Ftuan Manzuo Manzuo Dianping Manzuo Manzuo Manzuo 55tuan Ftuan

10 Gaopeng Nuomi Nuomi Gaopeng Dianping 24quan 55tuan Lashou 24quan

As in June, QQ is no.1 in Nr. of deals launched, total nr. sold and total revenue.

55tuan is improving the most in all 3 rankings.

Meituan, Manzuo, Nuomi and Dianping solidified their positions in the top 10.

Gaopeng launched more deals, sold more, but revenue wise it is 1 position out

of the top 10.Top 10 Websites


Sites Pricing strategy

Average Discount

Average Price

Overall average discount: 60%

Overall price/deal: 127 Rmb

The average discount of all the daily deals is 60%, the average price is 127 Rmb.

The discount of the top 20 deal sites ranges from 55% to 81%; The average price

ranges from 36 to 177 Rmb.


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

Average Nr. Sold 165 398 984 567 2541

Average Price (Rmb) 162 68 120 131 193

Average Discount 84% 54% 36% 64% 58%

Dining deals make up 26.6% of all deals launched, followed by Life services

deals (25.4%).

Dining deals are the cheapest.

Life services deals have the biggest discount, while Shopping deals have the

smallest discount.


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 Northwest 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 25,813 360 112 67%

North China 11,211 477 147 68%

South China 10,516 309 117 68%

Middle China 7,835 377 96 67%

Northeast China 6,449 320 111 64%

Southwest China 5,374 347 111 67%

Northwest China 3,154 323 93 71%


Daily Deals Market

Region by Region


25,813

3,154

11,211

10,516

7,835

6,449

5,374

Nr. of Local Deals

Average Nr. Sold/Deal


Top Deals Analytics – Deal Categories

July June May

Life services 10% 10% 5%

Dining 26% 22% 19%

Online shopping 21% 22% 31%

Leisure (Movies) 28% 24% 28%

Leisure (Others) 9% 7% 2%

Others 6% 15% 15%

37%

Leisure accounts for 37% 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 28%

of all the top 500 deals.

Dining deals are the 2nd most popular category among the top deals.

The two main sub-categories are Seafood/Buffets and Hotpot/BBQ.


Top Deals Analytics – Deal Sites

Dianping, as in June, again has the biggest percentage among the top deals,

followed by Manzuo and Nuomi.


Failed Deals Analytics 1



8.7% - the average % of failed deals in July

While the total Nr. of deals launched keep increasing, the percentage of failed

deals (<5 sold) is going up as well; Nearly half of the failed deals have 0 sales.

Comparing the top 10 deal sites, QQ has the highest % of failed deals, 16.7%;

Dianping has the lowest, only 0.5%.

Looking beyond the Top 10, the “leader” in failed deals is Gaopeng with 29.4%.



Photography

12%

Online Shopping accounts for the biggest percentage of failed deals (Nr. sold

less than 5), followed by Life services.

Photography, a subcategory of Life services, known for its nontransparent

pricing, accounts for 12% of the failed deals.


18

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, June and July, 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 percentage of failed deals (Nr. Sold <5) is going up as well, nearly half of

these deals have 0 sales.

QQ (No.1) and Gaopeng (No.11) had the most failed deals in July.

2. 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; Northwest China is

the lowest.


Summary 2 – Top Websites & Failed deals

4. Top sold deals and failed deals analytics:

Leisure accounts for 37% of the 500 top deals; among the popular leisure deals,

the majority is in the sub-category Movies (28%).

Online Shopping accounts for the biggest percentage of failed deals, followed by

Life services.

Photography, a subcategory of Life services, accounts for 12% of the failed deals.

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

As in June, 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.

Gaopeng ranks no. 11 in revenue. It launched more deals, sold more, but at the

same time the percentage of failed deals (< 5 sales) is high, nearly 30%.

Meituan, Manzuo, Nuomi and Dianping solidified their positions in the top 10.

Dianping seems more selective in deals’ quality, as it has the biggest percentage

among the top deals and the smallest percentage in the failed deals.


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

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 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 websites that unfortunately are not included due to not providing correct data access (api) are

Ju.taobao.com and groupon.cn.

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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the chinese daily deal market in july - failed deals analytics

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