QQ Now Leads Group Buying Market with 10%, Lashou Drops to 10th Position

Just last month, we reported Lashou was the leading group-buying site in China accounting for 14.4% of market share in terms of revenue. Just one month later, the fierce group-buying battle field shows that QQ now dominates the market with 10% market share (up from 6th place) and Lashou has dropped to the 10th position with only 5.1% market share for the month of May.

According to Dataotuan, a unique daily deal aggregator and analytics platform in China, Lashou’s steep decline is due to the fall in average deal price of 22rmb (from 111rmb to 89rmb over May to June) but maintaining a deal discount of 62%. QQ however, over the same period, increased its average deal price from 99rmb to 112rmb as well as maintaining the most number of deals available. Interestingly, Lashou still sells the 3rd most number of deals but the drop in average deal value has hurt them.  The power shift clearly demonstrates how competitive it is to stay on top of the group-buying craze.

The top 10 deal sites in June accounted for 74.8% of market share, up from 69.3% in May. This illustrates the gradual market consolidation where the big players are eating up share of the smaller players as they drop out of the market. It will be interesting to see how the group-buying space morphs by the end of the year and how each top player can differentiate themselves.