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Chinese Group Buying Market Shrinking Dramatically

By on October 25, 2012

Chinese group buying service aggregator Tuan800 released a latest report, indicating that by the end of September Chinese group-buying sites shrank to 2919, dropped 42% yoy. The message can be translated into the fact that 5.9 Chinese group buy sites either shut down or pivoted to other ideas every day. 24Quan which use to be in the Top 10 army just announced to close business temporarily due to a investor-founder contradiction.

It “seems” that group buying is becoming a promising market as consumers can get discounts anytime anywhere with smart phone at hand. It’s estimated that the whole Chinese O2O market will reach 98.68 billion, increased by 75.5% yoy. As the vanguard in O2O business, group buying should have grasped the opportunity and stepped itself up, but the sobering reality is that only 10 out of the remaining 2919 players offer mobile clients, accounting for only 0.3% of the whole.

An industry insider once said that it’s not likely that consumers installed more than 1 group buying app into their smart phones, so the coverage of mobile clients are of most importance. Adding an app to these group buying sites’ consumer reach points would help them get more exposure among potential users. After nearly two years of wild growing, Chinese group buying services now all look like each other with little differentiation, we’re expect to see an ongoing consolidation in the market till only about 10 left.

Photo credit: BigStockPhoto


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About Chelsea Dong

She reads, travels, photographs and writes, with interests in chronicling China tech scene and interpreting how technology disrupts the way people live.
  • techielove

    Looks like the Chinese market needs to do something with the drastic change in the group buying market, for thins industry is booming in other countries. They should come up with something for in order to make the group buying industry rise in the country.

    Metrodeal