China groupon sites disappear quickly
Posted on Feb-16-2012· by china investor
Groupon is a good business model, and it do not need a high threshold for webmasters, in china, the price of many consumer goods is higher than the USA, we offten read news from the new paper that some guy export something to USA as $10,but sellling it on China more than $40, Groupon sites give a big discount for goods and CNNIC said 80% users trust Groupon sites, Groupon is very popular in last years. In DEC 2010, a report said many Groupon sites can earn %15 profit.
But in the current Groupon sites in China disappear quickly, in SEP 2011, there are about 5058 Groupon sites in China, 3 months later, only 3907 Groupon sites still offer services for the users. Another report said many Groupon sites can only earn 5% profit, and some of Groupon sites lose money in last year, 1/4 sites had to close their business, only a little big player can keep 10% profit.
Some researcher said the reason is all these sites have the same business, and it is easy to be copy, so in a long time, maybe just one night, when you wake up you can heard some new Groupon sites begin offer services and their price lowest than the old ones, some report said in USA, Groupon sites can get 50% from their market, but in last year, many sites can not get 10% profit from their sites, the most of profit taken by the factory.
Another report said, In China, when Groupon sites is a new idea be copied, it is easy to get a huge investerment, some of Groupon sites is very powerful and popular, but they waste a lot of money for the advertising, it caused money flow breaken.
In another hand, after some Integrity crisis, some users not trust Groupon model like 1 years before, it is not a good new for these weak and small player, some report forecast maybe there are only 10 Groupon sites can surviving, so maybe this is only the start point of the trend of Groupon sites close down, any way, in the current there are only 1/4 sites close down, in USA, where the birthplace of Groupon business model, we had heard 1/3 Groupon sites choose close down some months before.
China investor reported for you at Jan 16 2012 in China. The picture come from nddaily.com