It seems the group buying heat in China is eventually winding down, according to a report by Tuan800, a leading group buying service navigation site in China, this past April saw the first time recession in Beijing and Guangzhou online deals market since Tuan800 compiled such data. Beijing and Guangzhou are separately the biggest and third largest group buying market in China. While in Shanghai, the second largest Chinese daily deals market, group buying service was also suffered a setback with slow growth.
April group-buying volume: Guangzhou down 25%, Beijing down 6% and Shanghai down 3% from March
Group buying sales in Guangzhou fell to RMB 27.5 million (US$ 4 million) in April, down 25% from March, after being stagnant for the past few months. Beijing volume is down 6% month-on-month to RMB 76.15 million (US$ 11.7 milion) in April, and Shanghai claimed RMB 66.45 million (US$ 10 million) in online deal sales in this April, down 3% from March.
According to Tuan800’s report, less than 300 new group buying service emerged in China last month, which is far less than the 732 of newcomers to the area in this March.
In April, top cities in terms of groupbuying volume are Beijing, Shanghai and Tianjin.
Top independent and affliate groupbuying sites in China
Some exiting the market amidst intense competition
On top of recession or slow growth, several online deal giants are also closing down their local presence in some 3rd and 4th tier cities, including Kaixin Deals and Meituan.
As of late April, there’re more than 4,300 daily deal sites in China.