China group buying transaction volume hit US$ 1.74 billion (RMB 11 billion) in 2011, up 550% from the same period in 2010, according to a report by Tuan800.com, the Beijing-based daily deal sites aggregator.
The report also shows that by the end of 2011 there’re more than 3987 group buying players in the market, down from the peak of over 5000, due largely to funding shortage and blinding expansion, on and off news broke that even the big guys such as Meituan, Lashou, 55Tuan and 24quan were shedding headcount to retrench. There’re 1726 group buying players by the end of 2010.
7 big buys grabbed more than RMB 100 million (US$ 15.8 million) in sales in 2011 while three of them, namely Meituan, Lashou and 55Tuan jointly took over more than 38% of the whole market.
Some highlights about Chinese people’s group buying behavior:
*Restaurant and Movies are among the most favorable categories while restaurant accounts for 36% of total buying in last year, or RMB 3.95 billion (US$ 625 million) and movies buying reached RMB 900 million (US$ 142 million)
*travel related buying such as hotel rooms reached RMB 440 million (US$ 69.6 million)
*four made it to the RMB 1 billion club: Meituan, Lashou, 55Tuan and DianpingTuan