An overview of the Chinese Daily Deal (Groupbuying Market) by Dataotuan.com Who are the main players, what are the categories and what ... constitutes a good Chinese daily deal.

1. dataotuan.com
Chinese Daily Deal (Tuangou)
Websites Analysis
2011 May Report
Published: June 15, 2011
Data source: Dataotuan.com 2011 May. 1-31
© Dataotuan - blog.dataotuan.com – May 2011

2. Table of Contents
 What Is a Top Deal
 Specifications
 Main Daily Deal Websites Analytics
 Deal Categories Analytics
 Top Deals Analytics
 Summary
 About Dataotuan
 Dataotuan Tracks & Helps
 Contact
© Dataotuan - blog.dataotuan.com – May 2011 2

3. What Is a Top Deal
A Top Daily Deal is exactly what you would expect
 It's about quality not just price
 The terms are flexible
 The merchant is trustworthy
 It’s redeemable in several locations
© Dataotuan - blog.dataotuan.com – May 2011 3

4. Specifications 1 – Data Definitions
1. All the data have been collected in the period May 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.
② Nr. Sold – total number of times that the consumers bought deals.
③ Nr. Sold/Deal – average number sold per deal. It is the indicator to show
the activity and quality of the users, as well as the quality of the deals.
④ Revenue: Nr.Sold * Current price (the price the consumer pays)
⑤ Top Deals – the 100 deals which generated the most revenue.
*See for a full overview of what data Dataotuan has “Dataotuan Tracks & Collects”
© Dataotuan - blog.dataotuan.com – May 2011 4

5. Specifications 2 - Categories
 Deals category/subcategory specification by Dataotuan.
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,
Japanese/Korean Hotel/Tour Education/Training Clothing/Footgear
gasoline station,
Western Food/ mobile phone
KTV Realty/Car Trade Jewelry/Accessories
International minutes, etc.
Hotpot/Barbecue Sports/Fitness Medical Examination Children-related
Hairdressing and
Others Others Electronic Products
Nail Beauty
Health Others
Beauty/SPA
Others
© Dataotuan - blog.dataotuan.com – May 2011 5

6. Top Daily Deal Websites – Market Share
 The top 10 deal sites account for nearly 70% of the total revenue.
 Lashou is no.1 in revenue, significantly more than the others.
Lashou
14.4%
Meituan
Others 8.2%
30.8%
24quan
7.6%
58tuan
7.5%
55tuan
Dianping
3.6%
Manzuo 6.5%
4.9% Nuomi Ftuan QQ
5.2% 5.5% 5.9%
© Dataotuan - blog.dataotuan.com – May 2011 6

7. Top Daily Deal Websites - Overview
 QQ launched the most deals, followed by Lashou and Meituan.
 Sina is no.1 in total number sold and average nr. sold per deal, though it has
much less revenue and deals compared with the other big deal sites.
Ranking Nr. of Deals Total Nr. Sold Nr.Sold/Deal
1 QQ Sina Sina
2 Lashou Lashou Dianping
3 Meituan Meituan Cogo-cola
4 55tuan QQ Nuomi
5 Groupon.cn Nuomi Go.cn
6 24quan 24quan Meituan
7 58tuan 55tuan Lashou
8 Manzuo 58tuan Gaopeng
9 Ftuan Dianping Didatuan
10 Gaopeng Gaopeng Manzuo
© Dataotuan - blog.dataotuan.com – May 2011 7

8. Deal Categories - Price
 Restaurant deals are the cheapest. Average Revenue (Rmb)
 Life services deals are the most expensive
20915
23439
23297
21845
12661
Average Price/Rmb
Average Nr. Sold
154 1039
943
Life services 1306
Restaurants 101
549
86 86
Online shopping 248
63
Leisure
Total Average Discount (%)
66%
66%
64%
56%
82%
© Dataotuan - blog.dataotuan.com – May 2011 8

9. Deal Categories - Discount
 Life services have the biggest discount, Average Price (Rmb)
the lowest nr. sold/deal & the lowest revenue/deal.
101
 Restaurants offer the smallest discount 86
86
63
154
Average Discount (% )
82%
Average Revenue (Rmb)
20915
64% 66% 66%
23439
Life services 56% 23297
Restaurants 21845
Online shopping 12661
Leisure
Total
Average Nr. Sold
1039
943
1306
549
248
© Dataotuan - blog.dataotuan.com – May 2011 9

10. Deal Categories - Nr. Sold
 Online shopping deals have the highest nr.sold/deal. Average Discount (%)
 Online shopping deals have the 2nd best
66%
revenue/deal. 66%
64%
56%
82%
Average Nr. Sold Average Price (Rmb)
1306
101
86
1039
943 86
Life services
63
Restaurants
154
Online shopping 549
Leisure Average Revenue (Rmb)
Total 248
20915
23439
23297
21845
12661
© Dataotuan - blog.dataotuan.com – May 2011 10

11. Deal Categories - Revenue
 Leisure has the most revenue/deal, Average Nr. Sold
closely followed by Online Shopping
 Life Services generate the least revenue/deal.
1039
943
1306
549
248
Average Revenue (Rmb)
23297 23439
21845 Average Discount (%)
20915
66%
66%
Life services
64%
Restaurants 12661 56%
Online shopping 82%
Leisure
Total Average Price (Rmb)
101
86
86
63
154
© Dataotuan - blog.dataotuan.com – May 2011 11

12. Top 100 Deals Analytics – Categories
 Among the top 100 deals which generated the highest revenue, Online
shopping accounts for 31%, and Leisure 30%.
 Movies, a sub-category of Leisure, are very popular: accounting for 28% of all
the top deals.
Leisure (Movies)
28%
Online Shopping Leisure
31% (Others)2%
Coupons
15%
Restaurants Life Services
19% 5%
© Dataotuan - blog.dataotuan.com – May 2011 12

13. Top Deals Analytics – Deal Sites
 The deals which generated the most revenue are more likely to be offered by
the top daily deal sites, likely because of their reach & marketing budgets.
 Lashou has the biggest percentage among the top deals, followed by Dianping
and 24quan.
Lashou
17% Dianping
Others 12%
9%
55tuan 3% 24quan
Groupon 3% 12%
Meituan 5%
QQ 5% Manzuo
11%
Didatuan Nuomi
Ftuan
6% 10%
7%
© Dataotuan - blog.dataotuan.com – May 2011 13

14. Top Deals Analytics – Comparison Total
Top deals generate 48 times more revenue Top deals sell 20 times more
992186
21128
20915 1039
Average Revenue (Rmb) Average Nr. Sold
Top deals have less discount Top deals have a higher price
66% 266
57% 101
 Total Average
 Top Deals Average
Average©Discount (%) blog.dataotuan.com Average Price (Rmb)
Dataotuan - – May 2011 14

15. Top Deals Analytics – Comparison Category
 Vouchers for Supermarkets, gasoline stations, mobile phone minutes etc.
generated the highest average revenue, even though their discounts are the
smallest. e.g. a 100 Rmb gas voucher offered for 92 Rmb. Very likely because
their real value is trustworthy and the vouchers can be used in many locations.
 Online shopping deals have on average the longest deal time.
 Life Services deals offer the highest discount but their nr. sold is far less than
deals from other categories.
Av. Nr. Sold Av. Price Av. Discount Av. Revenue Days
Life services 1,403 2,500 75% 721,866 12
Restaurants 13,763 116 48% 878,128 5
Online shopping 16,790 270 68% 818,992 18
Vouchers 18,503 118 8% 1,724,979 7
Leisure 24,619 62 71% 946,924 11
*Average Price, Average Revenue are all in Renminbi. Days is the availability of the deal in days
© Dataotuan - blog.dataotuan.com – May 2011 15

16. Top Deals Analytics – Location & Offers
Location
 Online shopping deals are mostly national deals, while deals in the categories
of restaurants, leisure, life services and vouchers are in general local.
 In terms of the number of top local deals, Shanghai has the most, followed by
Beijing and Tianjin.
Restaurants
 Half of the top restaurant deals are offered by Dianping.
 Hotpots and Buffet deals stand out among the Top Restaurant Deals. Venues
with brand awareness and/or several locations (chains) are especially popular.
Leisure
 Movies account for 28% of all the top deals.
 Most of the movie deals offer 2 person-packages - tickets with snacks and
drinks included, and have flexible usage terms.
© Dataotuan - blog.dataotuan.com – May 2011 16

17. Summary – 1
Daily Deal Sites:
 In terms of the total revenue, the top 10 deal sites account for nearly 70% of
the marketing share, with Lashou by far the leading player.
 QQ has the most deals, which shows its aggressiveness in merchant
acquisition.
 Sina is no.1 in total number sold and average nr. sold per deal, but its total
revenue and the number of deals is much less than the other big deal sites. The
best sold deals on Sina are more likely the cheap cosmetics and charity deals.
Deal categories:
 The average price/deal is 101 Rmb, average discount is 66%.
 Restaurant deals are on average the cheapest.
 Life services deals have the biggest discount, highest price but the lowest nr.
sold/deal and revenue/deal.
 Online shopping deals have the highest nr. sold and the 2nd most revenue, one
reason for this is that they are available for a much longer time compared with
the deals of the other categories.
© Dataotuan - blog.dataotuan.com – May 2011 17

18. Summary – 2
Top Deals Specifics:
 More Revenue
Top Deals generate 48 times more revenue,
 More Sales
Top Deals sell 20 times more per deal compared to the total
 Quality
Attract buyers because of the deal quality, not just discount
 Flexible
Have flexible usage terms
 Trustworthy/Awareness
Are offered by trustworthy merchants
 Convenience
Can be redeemed at many locations
© Dataotuan - blog.dataotuan.com – May 2011 18

19. 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 – May 2011 19

20. Dataotuan Tracks & Collects
Dataotuan Tracks Dataotuan Collects
149 of the main Daily Deal Sites Number of Deals
Gross revenue Province,
City, District, Category, Sub Cat.
314 cities in Mainland China(*) Deals & Revenue per District
Number of “real’ active Cities/Provinces
2000 – 4000 new deals every day Deal Title
Price (Original, Current, Abs. And % Discount)
Number of Sold Deals
Category/Sub Category
Availability in Time
City, District, Latitude/Longitude
Weather & more
*Dataotuan adds new Daily Deal websites on a regular basis based on quality and time of existence.
© Dataotuan - blog.dataotuan.com – May 2011 20

21. Dataotuan Helps
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
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
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 – May 2011 21

22. Contact Dataotuan
We’re happy to help you, please contact us at:
Chinese +86 13761796676 Email: wenli@dataotuan.com
English +86 13801660890 Email: gemme@dataotuan.com
Read more on blog.dataotuan.com
Follow us on twitter.com/dataotuan
weibo.com/dataotuan
Subscribe to our Reports reports@dataotuan.com
 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.
© Dataotuan - blog.dataotuan.com – May 2011 22