the re-targeting deals phenomenon- chinese daily deal market june
DESCRIPTION
An overview of the Chinese Daily Deal (Groupbuying) Market in June.Who are the main players, what are the categories and what are the characteristics of the Re-targeting dealsTRANSCRIPT
© Dataotuan - blog.dataotuan.com – June 2011
Chinese Daily Deal Websites
2011 June Report
Special: Re-Targeting Deals
dataotuan.com
Data source: Dataotuan.com 2011 Jun. 1-30Published: July 20, 2011
© Dataotuan - blog.dataotuan.com – June 2011 2
Table of Contents
Specifications
Main Daily Deal Websites Analytics
Deal Categories Analytics
Top Deals Analytics
Re-targeting Deals
Summary
About Dataotuan
Dataotuan Tracks & Helps
Contact
© Dataotuan - blog.dataotuan.com – June 2011 3
Specifications 1 – Data Definitions
1. All the data have been collected in the period June 1-30, 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.
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 200 deals which generated the most revenue.
⑤ Re-targeting Deals – Deals offered by 1 merchant on different deal
sites
*See for a full overview of what data Dataotuan has “Dataotuan Tracks & Collects”
© Dataotuan - blog.dataotuan.com – June 2011 4
Specifications 2 - Categories
Restaurants Leisure Life services Online shopping Others
Local Cuisine Recreation/Games Photography Food/Beverage Lucky draw
Seafood/Buffet Film/Exhibition Car Maintenance Skin care/Make-up Charity donation
Drinks/Dessert Drama/Show Pet Care Housing General vouchers
for supermarkets,
gasoline station,
mobile phone
minutes, etc.
Japanese/Korean Hotel/Tour Education/Training Clothing/Footgear
Western Food/
InternationalKTV Realty/Car Trade Jewelry/Accessories
Hotpot/Barbecue Sports/Fitness Medical Examination Children-related
Others OthersHairdressing and
Nail BeautyElectronic Products
Health Others
Beauty/SPA
Others
Deals category/subcategory specification by Dataotuan.
© Dataotuan - blog.dataotuan.com – June 2011 5
The top 20 deal sites account for 89% of the total revenue, indicating a high
market concentration.
The top 10 deal sites account for 74.8% of the market share, this was 69.3% in
May.
Top Daily Deal Websites – Market Share
QQ10.0%
Meituan8.6%
Manzuo8.4%
24quan8.2%
Nuomi7.9%
Ftuan7.0%
Dianping7.0%
58tuan6.6%
55tuan6.0%
Lashou5.1%
Didatuan2.6%
Gaopeng2.2%
Gocn2.0%
Juqi1.6%
Ayatuan1.6%
Shuangtuan1.3%
Liketuan1.1%
Tuanok0.7%
Aibang0.7%
Fantong0.6%
Others10.9%
Top 10 Websites
June May
QQ 10.0% Lashou 14.4%
Meituan 8.6% Meituan 8.2%
Manzuo 8.4% 24quan 7.6%
24quan 8.2% 58tuan 7.5%
Nuomi 7.9% Dianping 6.5%
Ftuan 7.0% QQ 5.9%
Dianping 7.0% Ftuan 5.5%
58tuan 6.6% Nuomi 5.2%
55tuan 6.0% Manzuo 4.9%
Lashou 5.1% 55tuan 3.6%
Total 74.8% Total 69.3%
© Dataotuan - blog.dataotuan.com – June 2011
Sites Ranking Comparison
6
RankNr. of Deals Total Nr. Sold Revenue
May June May June May June
1 QQ QQ Sina Meituan Lashou QQ
2 Lashou 55tuan Lashou QQ Meituan Meituan
3 Meituan Lashou Meituan Lashou 24quan Manzuo
4 55tuan Meituan QQ Nuomi 58tuan 24quan
5 Groupon.cn 24quan Nuomi 55tuan Dianping Nuomi
6 24quan Gaopeng 24quan 58tuan QQ Ftuan
7 58tuan 58tuan 55tuan 24quan Ftuan Dianping
8 Manzuo Ftuan 58tuan Aibang Nuomi 58tuan
9 Ftuan Manzuo Dianping Manzuo Manzuo 55tuan
10 Gaopeng Nuomi Gaopeng Dianping 55tuan Lashou
QQ is still no.1 in Nr. of deals launched, and became no.1 in terms of revenue,
while it was no.6 in May.
Revenue wise Lashou dropped to no.10 from the no.1 position in May. Lashou
is still among the top 3 based on Nr. of Deals and Nr. Sold.
© Dataotuan - blog.dataotuan.com – June 2011 7
Sites Pricing strategy
QQ offers the biggest discount, and Manzuo, the smallest.
Lashou's average deal price in June was 22 Rmb less than in May (111 Rmb vs
89 Rmb), with the same discount of 62%. This explains Lashou’s fall in revenue.
99
78 90
97
124
147
104 102
133
111 112
75
103
189
150
130
108
127
164
89
0
20
40
60
80
100
120
140
160
180
200
QQ Meituan Manzuo 24quan Nuomi Ftuan Dianping 58tuan 55tuan Lashou
May
June
50%
55%
60%
65%
70%
75%Average Discount
Average Price
Revenue ranking went up Revenue ranking went down
© Dataotuan - blog.dataotuan.com – June 2011 8
Deals Overall Comparison
There were more deals launched in June than in May. The June Deals
generated on average less revenue and less nr. sold.
One reason might be the average price per deal increased while at the same
the average discount % went down.
1,039
770
Average Nr. Sold
20,915
18,677
Average Revenue (Rmb)
May June
46,124
57,645
Total Nr. Deals
66%
63%
Average Discount (%)
101
112
Average Price (Rmb)
© Dataotuan - blog.dataotuan.com – June 2011 9
Average Nr. Sold
(Rmb)
Average
Price
Average
Discount
Life services 206 154 83%
Dining 499 62 50%
Online shopping 1,324 110 62%
Leisure 769 104 66%
Total 770 112 63%
Restaurant deals are the cheapest, with the least discount. The average
discount for restaurant deals in June was even less than in May, 50% vs 56%.
Life services deals are the most expensive, even after the biggest discount.
Deals Category Comparison
© Dataotuan - blog.dataotuan.com – June 2011 10
0
200
400
600
800
1000
1200
1400
1600
1800
Beijing Shanghai Guangzhou Wuhan Chengdu Shenyang
Dining Leisure Life services
In terms of the Nr. of Local Deals (Dining, Leisure and Life services) launched
in different cities, Beijing ranks no. 1, followed by Shanghai and Guangzhou.
The Nr. of Dining deals in Chengdu ranks nr. 3, following Beijing and Shanghai.
Nr. Deals in Different Cities
© Dataotuan - blog.dataotuan.com – June 2011 11
Top Deals Analytics – Categories
Among the top deals which generated the highest revenue, Leisure accounts
for 31%, which might be related to the coming summer holiday.
Movies, a sub-category of Leisure, are still very popular: accounting for 24%
of all the top 200 deals.
Online shopping deals account for a much smaller percentage compared with
May.
Life services
10%
Dining22%
Online shopping
22%
Leisure (Movies)
24%
Leisure (Others)
7%
Others15%
June May
Life services 10% 5%
Dining 22% 19%
Online shopping 22% 31%
Leisure (Movies) 24% 28%
Leisure (Others) 7% 2%
Coupons 15% 15%
© Dataotuan - blog.dataotuan.com – June 2011 12
Top Deals Analytics – Deal Sites
The deals which generated the most revenue are likelier to be offered by the
top daily deal sites, though the ranking in June is different from May.
Dianping, instead of Lashou (in May), has the biggest percentage among the
top deals, followed by Nuomi and 24quan.
Dianping17%
Nuomi 15%
24quan14%
Manzuo 14%
Meituan8%
55tuan5%
Lashou 4%
58tuan4%
Ftuan4%
QQ4%
Didatuan3%
Others8%
Top Deals Analytics
June May
Dianping 17% Lashou 17%
Nuomi 15% Dianping 12%
24tuan 14% 24tuan 12%
Manzuo 14% Manzuo 11%
Meituan 8% Nuomi 10%
55tuan 5% Ftuan 7%
Lashou 4% Didatuan 6%
58tuan 4% QQ 5%
Ftuan 4% Meituan 5%
QQ 4% Groupon.cn 3%
Didatuan 3% 55tuan 3%
Others 8% Others 9%
© Dataotuan - blog.dataotuan.com – June 2011 13
Re-targeting Deals – Overview
Re-targeting deals characteristics: Merchant is well known, and is willing to explore daily deals.
Merchant often has several stores.
A site may have different offers from the same merchant at the same period.
The original deals were successful.
The deals often originate from small, local sites, then taken by the big players.
The original deals are often cheap, the re-targeted deals are more expensive.
Re-targeting deals can be deals in any category.
Re-targeting
Daily deal websites are always on the look out for the best deals. One way they
source these is by looking at the competition to see which deals did well.
Considering the amount of Daily Deal websites, it's no surprise that successful
deals are offered later in the same form or packaged differently by others.
Dataotuan defines this as Re-targeting Deals
© Dataotuan - blog.dataotuan.com – June 2011 14
Re-targeting Deals Case 1 – Jinjiang Inn
Merchant name Jinjiang Inn
Data scraping time 2011, Jun. 1-30
Deals number * 277
Sites number 16
Cities covered 85
* Including the deals offered by other hotel brands from the Jinjiang Group
Almost all the major deal sites have cooperated with Jinjiang Inn in June.
Deal sites have very different performance results for similar deals.
The original deals were offered more than half a year ago, by local sites in
Xiamen and Chongqing.
Jinjiang Inn is a well known economy hotel chain in China.
It has more than 550 hotels, with over 67,000 rooms in total,
covering more than 140 cities in 31 provinces.
© Dataotuan - blog.dataotuan.com – June 2011
The most popular deals from Jinjiang Inn were on QQ, Ftuan, Didatuan, 58tuan.
Re-targeting Deals Case 1 – Jinjiang Inn
Didatuan: 1000 sold 58tuan: 758 sold
Ftuan: 1472 soldQQ: 1895 sold
© Dataotuan - blog.dataotuan.com – June 2011
The least popular Jinjiang Inn deals were on: Lashou, ENB, Groupon.cn, Manzuo.
Re-targeting Deals Case 1 – Jinjiang Inn
Lashou: 31 sold ENB: 18 sold
Groupon.cn: 24 soldManzuo: 52 sold
© Dataotuan - blog.dataotuan.com – June 2011
The original Jinjiang Inn deals were offered by local sites in Xiamen & Chongqing.
Re-targeting Deals Case 1 – Jinjiang Inn
Tg00.com: 434 sold
Merrytogo: 97 sold
17
© Dataotuan - blog.dataotuan.com – June 2011 18
Re-targeting Deals Case 2 – OCT East
Merchant name OCT East
Data scraping time 2011, Jun. 1-30
Deals number 116
Sites number 9
City covered 18
A big deal site may offer several re-targeting deals from the same merchant
during the same period.
The re-targeting deals are likelier to be more expensive than the original deals.
The unpopular/failed re-targeting deals are likelier to be offered by the small
sites, although it also happened to the big sites occasionally (see Jinjiang case).
OCT East is a large national ecological park and
tourist resort. It is located in Shenzhen, Guangdong,
covering an area of 9 square kilometers, includes
parks, temple, hotels, golf courses, etc.
© Dataotuan - blog.dataotuan.com – June 2011 19
Nuomi had 7 times different offers from OCT East in June.
Re-targeting Deals Case 2 – OCT East
© Dataotuan - blog.dataotuan.com – June 2011 20
Popular deals of OCT East in June are offered by Didatuan and QQ.
They are more expensive than the original ones.
Re-targeting Deals Case 2 – OCT East
QQ: 625 soldDidatuan: 867 sold
© Dataotuan - blog.dataotuan.com – June 2011
Unpopular or even Failed deals from OCT East in June.
Re-targeting Deals Case 2 – OCT East
Tuan001: FAILED
Wanketuan: 95 sold
Dushihui: 15 sold
© Dataotuan - blog.dataotuan.com – June 2011
The original deals from OCT East: cheaper, successful.
Re-targeting Deals Case 2 – OCT East
25tuan: 988 sold
0755tuan: 188 sold
25tuan: 5001 sold
© Dataotuan - blog.dataotuan.com – June 2011
Exactly the same product, with the same price, the same
discount & launched in the same period had a completely
different performance on 55tuan, Groupon.cn & Gaopeng.
Re-targeting Case 3 – Huangshanghuang
Huangshanghuang Snack Packaged smoked dry pork meat
55tuan:16353 sold in 5 days
Groupon.cn: 3954 sold in 6 days
Gaopeng: 138 sold in 4 days
23
© Dataotuan - blog.dataotuan.com – June 2011 24
Summary 1 – Market Share & Trends
The trend of the Chinese Daily Deal market in June:
More deals, higher average price, less sold, less revenue.
The Daily Deal market showed a higher market concentration, while the
ranking of the leading websites changed significantly.
The top 20 deal sites account for 89% of the total revenue,
the top 10 deal sites account now for 75% (in May it was 70%.)
The websites in the top 10 are the same as in May but 9 changed position.
QQ launched the most deals with the biggest discount and became the No.1 in
revenue in June.
May's No.1 Lashou dropped to position no.10 in revenue.
The average price per deal on Lashou in June is 24 yuan (22%) less than in May,
after the same discount, which explains Lashou’s fall in the revenue ranking.
Leisure still accounts for the biggest percentage among the top deals;
Dianping, instead of Lashou (in May), has the biggest percentage among the top
deals.
© Dataotuan - blog.dataotuan.com – June 2011 25
Summary 2 – Re-targeting Deals
Dataotuan has included for the first time an analysis of Re-targeting deals as
we noticed that similar deals offered by the same vendor/venue were popping
up more regularly.
For a daily deal website the easiest and safest way is to copy proven successful
deals, or at least their sales force may think so.
The increasing competition among the many deal sites makes that the more
well-known venues are contacted more often.
There are a couple of reasons for this:
The analysis showed several Re-targeting deal characteristics.
Merchant is well known, and is willing to explore daily deals.
Merchant often has several stores.
A site may have different offers from the same merchant at the same period.
The original deals were successful.
The deals often originate from small, local sites, then taken by the big players.
The original deals are often cheap, the re-targeted deals are more expensive.
Re-targeting deals can be deals in any category.
© Dataotuan - blog.dataotuan.com – June 2011 26
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 - blog.dataotuan.com – June 2011 27
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 - blog.dataotuan.com – June 2011 28
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 - blog.dataotuan.com – June 2011 29
Dataotuan Announcements
Dataotuan Singapore is out of her soft launch, see singapore.dataotuan.com
Dataotuan Malaysia is now in soft launch, see malaysia.dataotuan.com
Dataotuan Philippines comes soon, bookmark philippines.dataotuan.com
Dataotuan offers from now on also the sales & data products for
Singapore and Malaysia
The Philippines is expected to be data ready in the coming month.
If you like Dataotuan to track a specific country, please contact us
© Dataotuan - blog.dataotuan.com – June 2011 30
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 one daily deal website that unfortunately is not included due to not providing data access (api) is Ju.taobao.com.
Please contact us if you have any questions/remarks related to this report.
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