Groupon's deal-a-day group discount business model has been copied around the world but nowhere more vigorously than in China. Meituan was among the first.
GROUPON (FROM "GROUP COUPON")
Founder: Andrew Mason, 30, born in Pittsburgh, Pennsylvania.
Employees: 6,000.
Projected coupon sales for 2011: $3 billion to $4 billion.
Revenue share from coupon sales: 30% to 50%.
Recent deal: Bus ride from New York to Washington, D.C. for $10, valued at $20.
MEITUAN (MEANING "BEAUTIFUL GROUP")
Founder: Wang Xing, 32, born in Longyan, Fujian Province.
Employees: 1,400, plus 300 franchised sales agents throughout China.
Projected coupon sales for 2011: $150 million to $230 million.
Revenue share from coupon sales: Less than 10%.
Recent deal: Japanese meal for two in Beijing for $26, valued at $106.
The cooperation between the biggest group purchase website in the US and Chinese Internet giant Tencent is expected to energize competition in the domestic market for group purchases. It plans to increase its staff to 1,000 people within three months. Many of its Chinese peers say their employees have received job offers with better pay from Groupon. Reports say some local websites have even reached an agreement that they would not hire people who have worked for Groupon. While confidence by overseas companies in their China ventures often comes from their well-established brands, ample capital and global management expertise, domestic websites have advantages in offline services, cooperation with online sellers and customer loyalty, as well as their familiarity with the local business environment.
The group-buying marketplace is rife with scandal stories about exaggerated sales or, worse, dissatisfied customers. Big names like Lashou and Meituan take the brunt of the bad publicity, including a national television expose on "consumer day" in March that attacked both. Keeping original operation mode is not a long term strategy. They are looking forward the next transformation because cloning businesses is far too easy in China, but cloning success is no sure thing.
@Shuwen Zhao
