Chinese daily deal site Meituan.com which was founded by serial entrepreneur Wang Xing in last March ranked first in October in terms of monthly sales with sales over US$ 27 million, according to Tuan800.com “China Group-Buying Statistics Report for October 2011”. Tuan800 is a daily deal sites aggregator that also compiles a monthly report on China’s group buying sector.
The report says that Meituan has maintained a steady monthly growth rate of 20%, with recorded sales of over US$ 20.5 million in August and $ 23.7 million and $ 27 million for September and October respectively. As for November, its sales topped US$ 31.1 million by preliminary data.
As for the whole sector, Meituan, 55Tuan, Lashou, Nuomi and Dianping are those who made it to the Hundred Million Club, only these five of the 4000+ Chinese daily deal sites exceeded RMB 100 million (US$ 15.7 million) in sales in last month.
The market is not all that rosy for group buying service as stuff like selling fake products (Gaopeng), unsuccessful IPO try (Lashou), shutting down branch offices (24quan.com) made headlines. The report has it that as of this October there’re 4075 group buying sites in total in China, about 1017 sites were shut down.
Wang Xing said that one of the major cause meituan maintained a steady and cautious growth month-over-month is that they purposely held growth at a reasonable rate, since if growth is too accelerated, the rapid increase in the number of cities, headcount and overall scale of operations will make it into something very difficult to manage.