The Re-targeting deals phenomenon- Chinese Daily Deal Market June

© Dataotuan - blog.dataotuan.com – June 2011

Chinese Daily Deal Websites

2011 June Report

Special: Re-Targeting Deals

dataotuan.com

Data source: Dataotuan.com 2011 Jun. 1-30Published: July 20, 2011

© Dataotuan - blog.dataotuan.com – June 2011 2

Table of Contents

Specifications

Main Daily Deal Websites Analytics

Deal Categories Analytics

Top Deals Analytics

Re-targeting Deals

Summary

About Dataotuan

Dataotuan Tracks & Helps

Contact


Specifications 1 – Data Definitions

1. All the data have been collected in the period June 1-30, 2011.

2. Number of deal sites tracked: 149

3. Number of cities tracked: 314

4. Definitions:

① Nr. Deals – number of deals closed with the merchants and launched

on the deal sites.

② Nr. Sold – total number of times that the consumers bought deals.

③ Revenue: Nr.Sold * Current price (the price the consumer pays)

④ Top Deals – the 200 deals which generated the most revenue.

⑤ Re-targeting Deals – Deals offered by 1 merchant on different deal

sites

*See for a full overview of what data Dataotuan has “Dataotuan Tracks & Collects”


Specifications 2 - Categories

Restaurants Leisure Life services Online shopping Others

Local Cuisine Recreation/Games Photography Food/Beverage Lucky draw

Seafood/Buffet Film/Exhibition Car Maintenance Skin care/Make-up Charity donation

Drinks/Dessert Drama/Show Pet Care Housing General vouchers

for supermarkets,

gasoline station,

mobile phone

minutes, etc.

Japanese/Korean Hotel/Tour Education/Training Clothing/Footgear

Western Food/

InternationalKTV Realty/Car Trade Jewelry/Accessories

Hotpot/Barbecue Sports/Fitness Medical Examination Children-related

Others OthersHairdressing and

Nail BeautyElectronic Products

Health Others

Beauty/SPA

Others

Deals category/subcategory specification by Dataotuan.


The top 20 deal sites account for 89% of the total revenue, indicating a high

market concentration.

The top 10 deal sites account for 74.8% of the market share, this was 69.3% in

May.

Top Daily Deal Websites – Market Share

QQ10.0%

Meituan8.6%

Manzuo8.4%

24quan8.2%

Nuomi7.9%

Ftuan7.0%

Dianping7.0%

58tuan6.6%

55tuan6.0%

Lashou5.1%

Didatuan2.6%

Gaopeng2.2%

Gocn2.0%

Juqi1.6%

Ayatuan1.6%

Shuangtuan1.3%

Liketuan1.1%

Tuanok0.7%

Aibang0.7%

Fantong0.6%

Others10.9%

Top 10 Websites

June May

QQ 10.0% Lashou 14.4%

Meituan 8.6% Meituan 8.2%

Manzuo 8.4% 24quan 7.6%

24quan 8.2% 58tuan 7.5%

Nuomi 7.9% Dianping 6.5%

Ftuan 7.0% QQ 5.9%

Dianping 7.0% Ftuan 5.5%

58tuan 6.6% Nuomi 5.2%

55tuan 6.0% Manzuo 4.9%

Lashou 5.1% 55tuan 3.6%

Total 74.8% Total 69.3%


Sites Ranking Comparison

6

RankNr. of Deals Total Nr. Sold Revenue

May June May June May June

1 QQ QQ Sina Meituan Lashou QQ

2 Lashou 55tuan Lashou QQ Meituan Meituan

3 Meituan Lashou Meituan Lashou 24quan Manzuo

4 55tuan Meituan QQ Nuomi 58tuan 24quan

5 Groupon.cn 24quan Nuomi 55tuan Dianping Nuomi

6 24quan Gaopeng 24quan 58tuan QQ Ftuan

7 58tuan 58tuan 55tuan 24quan Ftuan Dianping

8 Manzuo Ftuan 58tuan Aibang Nuomi 58tuan

9 Ftuan Manzuo Dianping Manzuo Manzuo 55tuan

10 Gaopeng Nuomi Gaopeng Dianping 55tuan Lashou

QQ is still no.1 in Nr. of deals launched, and became no.1 in terms of revenue,

while it was no.6 in May.

Revenue wise Lashou dropped to no.10 from the no.1 position in May. Lashou

is still among the top 3 based on Nr. of Deals and Nr. Sold.


Sites Pricing strategy

QQ offers the biggest discount, and Manzuo, the smallest.

Lashou's average deal price in June was 22 Rmb less than in May (111 Rmb vs

89 Rmb), with the same discount of 62%. This explains Lashou’s fall in revenue.

99

78 90

97

124

147

104 102

133

111 112

75

103

189

150

130

108

127

164

89

0

20

40

60

80

100

120

140

160

180

200

QQ Meituan Manzuo 24quan Nuomi Ftuan Dianping 58tuan 55tuan Lashou

May

June

50%

55%

60%

65%

70%

75%Average Discount

Average Price

Revenue ranking went up Revenue ranking went down


Deals Overall Comparison

There were more deals launched in June than in May. The June Deals

generated on average less revenue and less nr. sold.

One reason might be the average price per deal increased while at the same

the average discount % went down.

1,039

770

Average Nr. Sold

20,915

18,677

Average Revenue (Rmb)

May June

46,124

57,645

Total Nr. Deals

66%

63%

Average Discount (%)

101

112

Average Price (Rmb)


Average Nr. Sold

(Rmb)

Average

Price

Average

Discount

Life services 206 154 83%

Dining 499 62 50%

Online shopping 1,324 110 62%

Leisure 769 104 66%

Total 770 112 63%

Restaurant deals are the cheapest, with the least discount. The average

discount for restaurant deals in June was even less than in May, 50% vs 56%.

Life services deals are the most expensive, even after the biggest discount.

Deals Category Comparison


0

200

400

600

800

1000

1200

1400

1600

1800

Beijing Shanghai Guangzhou Wuhan Chengdu Shenyang

Dining Leisure Life services

In terms of the Nr. of Local Deals (Dining, Leisure and Life services) launched

in different cities, Beijing ranks no. 1, followed by Shanghai and Guangzhou.

The Nr. of Dining deals in Chengdu ranks nr. 3, following Beijing and Shanghai.

Nr. Deals in Different Cities


Top Deals Analytics – Categories

Among the top deals which generated the highest revenue, Leisure accounts

for 31%, which might be related to the coming summer holiday.

Movies, a sub-category of Leisure, are still very popular: accounting for 24%

of all the top 200 deals.

Online shopping deals account for a much smaller percentage compared with

May.

Life services

10%

Dining22%

Online shopping

22%

Leisure (Movies)

24%

Leisure (Others)

7%

Others15%

June May

Life services 10% 5%

Dining 22% 19%

Online shopping 22% 31%

Leisure (Movies) 24% 28%

Leisure (Others) 7% 2%

Coupons 15% 15%


Top Deals Analytics – Deal Sites

The deals which generated the most revenue are likelier to be offered by the

top daily deal sites, though the ranking in June is different from May.

Dianping, instead of Lashou (in May), has the biggest percentage among the

top deals, followed by Nuomi and 24quan.

Dianping17%

Nuomi 15%

24quan14%

Manzuo 14%

Meituan8%

55tuan5%

Lashou 4%

58tuan4%

Ftuan4%

QQ4%

Didatuan3%

Others8%

Top Deals Analytics

June May

Dianping 17% Lashou 17%

Nuomi 15% Dianping 12%

24tuan 14% 24tuan 12%

Manzuo 14% Manzuo 11%

Meituan 8% Nuomi 10%

55tuan 5% Ftuan 7%

Lashou 4% Didatuan 6%

58tuan 4% QQ 5%

Ftuan 4% Meituan 5%

QQ 4% Groupon.cn 3%

Didatuan 3% 55tuan 3%

Others 8% Others 9%


Re-targeting Deals – Overview

Re-targeting deals characteristics: Merchant is well known, and is willing to explore daily deals.

Merchant often has several stores.

A site may have different offers from the same merchant at the same period.

The original deals were successful.

The deals often originate from small, local sites, then taken by the big players.

The original deals are often cheap, the re-targeted deals are more expensive.

Re-targeting deals can be deals in any category.

Re-targeting

Daily deal websites are always on the look out for the best deals. One way they

source these is by looking at the competition to see which deals did well.

Considering the amount of Daily Deal websites, it's no surprise that successful

deals are offered later in the same form or packaged differently by others.

Dataotuan defines this as Re-targeting Deals


Re-targeting Deals Case 1 – Jinjiang Inn

Merchant name Jinjiang Inn

Data scraping time 2011, Jun. 1-30

Deals number * 277

Sites number 16

Cities covered 85

* Including the deals offered by other hotel brands from the Jinjiang Group

Almost all the major deal sites have cooperated with Jinjiang Inn in June.

Deal sites have very different performance results for similar deals.

The original deals were offered more than half a year ago, by local sites in

Xiamen and Chongqing.

Jinjiang Inn is a well known economy hotel chain in China.

It has more than 550 hotels, with over 67,000 rooms in total,

covering more than 140 cities in 31 provinces.


The most popular deals from Jinjiang Inn were on QQ, Ftuan, Didatuan, 58tuan.


Didatuan: 1000 sold 58tuan: 758 sold

Ftuan: 1472 soldQQ: 1895 sold


The least popular Jinjiang Inn deals were on: Lashou, ENB, Groupon.cn, Manzuo.


Lashou: 31 sold ENB: 18 sold

Groupon.cn: 24 soldManzuo: 52 sold


The original Jinjiang Inn deals were offered by local sites in Xiamen & Chongqing.


Tg00.com: 434 sold

Merrytogo: 97 sold

17


Re-targeting Deals Case 2 – OCT East

Merchant name OCT East

Data scraping time 2011, Jun. 1-30

Deals number 116

Sites number 9

City covered 18

A big deal site may offer several re-targeting deals from the same merchant

during the same period.

The re-targeting deals are likelier to be more expensive than the original deals.

The unpopular/failed re-targeting deals are likelier to be offered by the small

sites, although it also happened to the big sites occasionally (see Jinjiang case).

OCT East is a large national ecological park and

tourist resort. It is located in Shenzhen, Guangdong,

covering an area of 9 square kilometers, includes

parks, temple, hotels, golf courses, etc.


Nuomi had 7 times different offers from OCT East in June.



Popular deals of OCT East in June are offered by Didatuan and QQ.

They are more expensive than the original ones.


QQ: 625 soldDidatuan: 867 sold


Unpopular or even Failed deals from OCT East in June.


Tuan001: FAILED

Wanketuan: 95 sold

Dushihui: 15 sold


The original deals from OCT East: cheaper, successful.


25tuan: 988 sold

0755tuan: 188 sold

25tuan: 5001 sold


Exactly the same product, with the same price, the same

discount & launched in the same period had a completely

different performance on 55tuan, Groupon.cn & Gaopeng.

Re-targeting Case 3 – Huangshanghuang

Huangshanghuang Snack Packaged smoked dry pork meat

55tuan：16353 sold in 5 days

Groupon.cn: 3954 sold in 6 days

Gaopeng: 138 sold in 4 days

23


Summary 1 – Market Share & Trends

The trend of the Chinese Daily Deal market in June:

More deals, higher average price, less sold, less revenue.

The Daily Deal market showed a higher market concentration, while the

ranking of the leading websites changed significantly.

The top 20 deal sites account for 89% of the total revenue,

the top 10 deal sites account now for 75% (in May it was 70%.)

The websites in the top 10 are the same as in May but 9 changed position.

QQ launched the most deals with the biggest discount and became the No.1 in

revenue in June.

May's No.1 Lashou dropped to position no.10 in revenue.

The average price per deal on Lashou in June is 24 yuan (22%) less than in May,

after the same discount, which explains Lashou’s fall in the revenue ranking.

Leisure still accounts for the biggest percentage among the top deals;

Dianping, instead of Lashou (in May), has the biggest percentage among the top

deals.


Summary 2 – Re-targeting Deals

Dataotuan has included for the first time an analysis of Re-targeting deals as

we noticed that similar deals offered by the same vendor/venue were popping

up more regularly.

For a daily deal website the easiest and safest way is to copy proven successful

deals, or at least their sales force may think so.

The increasing competition among the many deal sites makes that the more

well-known venues are contacted more often.

There are a couple of reasons for this:

The analysis showed several Re-targeting deal characteristics.

Merchant is well known, and is willing to explore daily deals.

Merchant often has several stores.

A site may have different offers from the same merchant at the same period.

The original deals were successful.

The deals often originate from small, local sites, then taken by the big players.

The original deals are often cheap, the re-targeted deals are more expensive.

Re-targeting deals can be deals in any category.


About Dataotuan.com

Dataotuan, a unique daily deal aggregator and analytics platform in China,

was started with 2 goals in mind.

1. To recommend the best deals to our users based on where they are, what they

like and when they want it as well as giving them tools to manage them

2. To analyze the deal data in order to find out what constitutes the best daily deal


Dataotuan Tracks & Collects

Dataotuan Tracks

*Dataotuan adds new Daily Deal websites on a regular basis based on quality and time of existence.

Deal Title

Price (Original, Current, Abs. And % Discount)

Number of Sold Deals

Category/Sub Category

Availability in Time

City, District, Latitude/Longitude

Weather & more

Deals & Revenue per District

Number of “real’ active Cities/Provinces

Number of Deals

Gross revenue Province,

City, District, Category, Sub Cat.

314 cities in Mainland China(*)

2000 – 4000 new deals every day

Dataotuan Collects

149 of the main Daily Deal Sites


Dataotuan Helps

Analysts and Investors

Estimates of the Gross Revenue of the main Daily Deal websites.

Revenue trends for the main Daily Deal websites

Detailed market analysis for all tier cities in Mainland China.

Detailed category analysis for provinces & 1st and 2nd tier cities

Daily Deal Winners & Losers benchmark

Daily Deal websites

Sales Tool to help Source & Re-target deals as well as explore new cities

Daily Deal Predictor

Competition Analysis

City Market Entry

SWOT of your website or the competition

Merchant Advisor:

Select the most relevant daily deal website for your offer

Help to decide discount & pricing etc based on Dataotuan data.


Dataotuan Announcements

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Dataotuan Malaysia is now in soft launch, see malaysia.dataotuan.com

Dataotuan Philippines comes soon, bookmark philippines.dataotuan.com

Dataotuan offers from now on also the sales & data products for

Singapore and Malaysia

The Philippines is expected to be data ready in the coming month.

If you like Dataotuan to track a specific country, please contact us


The objective of this report is to offer insights into the Chinese Daily Deal industry.

Data are collected from the main Chinese deal websites and offer a reliable indication of the Chinese daily deal market

The one daily deal website that unfortunately is not included due to not providing data access (api) is Ju.taobao.com.

Please contact us if you have any questions/remarks related to this report.

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The Re-targeting deals phenomenon- Chinese Daily Deal Market June