China Daily Deal Customer Satisfaction Survey 2012 Q2

Dataotuan.com

China Daily Deal CustomerSatisfaction Survey

Published: Jul. 26, 2012

17 questions answered by 1918 Chinese consumers in May/June 2012

In cooperation with StarrySurvey.com

© Dataotuan - blog.dataotuan.com – www.dataotuan.com - Jul. 2012

Table of Contents

Quick Survey Results & Conclusion

The Survey Answers, One question at the time inc charts

About Dataotuan

Dataotuan Sales/Investor Tools

Dataotuan Announcements – Countries, Maps, Mobile

Contact

About StarrySurvey


Quick Results of Survey Daily Deals China - 1 They buy a lot of deals, intend to buy more.

Daily deals are very popular in China. People search and buy a lot. The larger group being the 21-40 yrs old (86% of our respondents) and more women then men. The majority (68%) is searching for deals in their own neighbourhood where they live and where they shop (41,8%).

Satisfaction with the merchants should improve.

Despite the already high frequency and the intention to buy more deals, only 67,8% of the

Chinese shoppers are satisfied with what they bought at a daily deal site. That’s not a lot.

31,8% said it was a “so-so” experience: not good not bad. And since dining (67,5%) and

online shopping (66,7%) are the 2 major categories in which they buy deals the problem might

be there.

To put that in a somewhat broader perspective, an online shop on Taobao has to have a

customer satisfaction index of at least 92% to get back part of the fee he has to pay to

Taobao. Hence, the 67,8% we measured is pretty low indeed.[1] There’s plenty of room for

improvement. The biggest improvement will have to come from the merchants. That’s clear.

3

[1] http://www.chinadaily.com.cn/china/2011-10/13/content_13881218.htm


Quick Results of Survey Daily Deals China - 2 Reasonable repurchase intention.

Although the satisfaction level is not that brilliant half of the consumers (52,6%) plan to go back to the same merchant when a similar deal is offered. 45,7% says they will go back to the same merchant and pay the full price

Could this mean that the low price in itself is not a major argument to buy a daily deal but that consumers are searching for a good balance between quality and price? It could be.

4 Recommended deal websites and the reasons

The 4 daily deal websites that were mentioned most often were Juhuasuan, Meituan, Lashou

and Dianping. The same 4 that got the highest Holaba-score in survey we did in Q4/2011

and Q1/2012/

On the question “Why do you recommend these daily deal sites?” the low price was only the

nr3 reason. The most important for the respondent is the abundance of daily deals in

different categories. This explains why aggregators rank nr. 2 as the place to find deals. The

deal sites themselves still rank nr. 1 as the place to go.

Surprising is to see that LBS is still very small as a source about deals (5,7%).

4


Quick Results of Survey Daily Deals China - 3 Strong willingness to recommend daily deal sites and deals.

It was not surprising to read that 31,4% mention “friends” as a source about daily deals. Whenever daily deal buyers are satisfied they recommend the deal to their friends.

18% says they do it every time - which is more than the usual 15% of all consumers we usually tend to call “brand recommenders.” A very high 36,3% say they do it very often.

68,8% uses IM (QQ or MSN) to send out their recommendations to their friends. 52,7% just talks (face 2 face) en 38,3% uses the phone. Weibo and SNS are less used. The above numbers confirm the power of WOM, also in this industry. Recommenders rule.

Could this mean that the low price in itself is not a major argument to buy a daily deal but that consumers are searching for a good balance between quality and price? It could be.

Conclusion

Chinese consumers are heavy buyers of daily deals and intend to even buy more., even though 1/3 of the merchants didn’t deliver a satisfying experience for the buyer.

The most recommended websites are Juhuasuan, Meituan, Lashou and DianpingChinese deal buyers are active recommenders using IM & Face-to-Face communication.

5


33.20%

18%

8.60%

7.50%

6.60%

6.40%

5.90%

4.90%

3.30%

3.20%

2.50%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00%

East China Others

Shanghai

Central China

South China Others

Beijing

North China

Southwest

Northeast

Guangzhou

Northwest

Shenzhen

Participants: Gender, Age & Location

2%

55.10%31%

8.40%

3.50%

<20

21-30

31-40

41-50

>50

Respondents Profile

45.00%

46.00%

47.00%

48.00%

49.00%

50.00%

51.00%

52.00%

53.00%

Male

Female


41%

35%

9%

5% 10%

Once a week or more

Once a month

Once a quarter

Once every 6 months

Less or never

Buying Frequency Majority of respondents often buy daily deals

9.50%

11%

30.50%

48.50%

0% 20% 40% 60%

Not interested in discounts.

Others

Other ways to find promotions

No idea what daily deal is.

Q4 How frequently do you buy from daily deal sites? (single Choice)

Q5 Why do you seldom or never buy daily deal? (single Choice)


Category Preferences Dining and Shopping most popular categories

67.5%

50.6%

34.5%

66.7%

Dining

LeisureLife

Online Shopping

Q6 In which category did you buy a daily deal? (Multiple Choice)


0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Ayatu

an

Tuanw

eihui

Juqi

Shuan

gtuan

Pintua

n

Liket

uan

Gotua

n

Other

s

Gaope

ng

24tqu

an

Ftuan

Ganji

Didatu

an

Man

zuo

Qqtua

n

58tua

n

Nuomi

55tua

n

Dianpin

g

Lash

ou

Meit

uan

Juhu

asua

n

Most Recommended Deal Sites & Why

Most recommended

66.30%

55.60%

54.10%

38%

27.50%Good after-sales service

Famous

Low price

Trustworthy

Different categories

Juhuasuan, Lashou & Meituan recommended, variety in deals top reason

Q7/8. Which daily deal sites do you recommend and why?


Satisfaction

67.80%

31.80%

0.40%

I'm satisfied.

Just so so.

Not satisfied

Majority is satisfied. 1/3 had a so so experience and a small percentage was not satisfied

0% 10% 20% 30% 40% 50% 60% 70% 80%

Product/service provided different from the offer

The service not as good as normal.

Merchant tried to charge more.

Too many restrictions

Others

Q9 Overall, were you satisfied with your consumption experience of daily deal? (single

Choice)

Q10 If not satisfied, what is the main reason that you were not satisfied? (Multiple Choice)


Merchant Stickiness

Almost half of respondents says they’re willing to pay the original price

1.60%

45.70%

52.60%

0% 10% 20% 30% 40% 50% 60%

No.

Will even purchase at theoriginal price.

Only if merchant offersagain a daily deal/big

discount.

Q11. Will you go back to the merchant after using the Daily Deal-voucher? (single Choice)


Future Plans for Buying Deals

0% 10% 20% 30% 40% 50% 60% 70%

Buy less daily deals

Buy more daily deals

Buy the same numberof daily deals

Majority of Chinese respondents plans to buy the same or more deals

Q15 In the future (the next couple of months) do you plan (single Choice)


Do you recommend deals to your friends and how?

Purchased Deals are recommend often to friends & > 37% of those follow up

Do you usually recommend a bought deal to your friends?

0.90%

4.90%

18%

36.30%

39.90%

NeverRarelyEvery timeOftenSometimes

Do your friends follow your recommendation and buy?

0.80%10%

27.30% 57.90%

4%

NeverRarelyEvery timeOftenSometimes

Q13 Do you usually recommend it to your friends after you buy a daily deal? (single Choice)

Q14 Do your friends follow your recommendation and buy the deal? (single Choice)


Recommendation Communication Instant Messaging & Face to Face are most used methods to recommend

0% 10% 20% 30% 40% 50% 60% 70% 80%

QQ / MSN

Face 2 Face

Phone

SMS

Email

Weibo/Twitter

SNS (Kaixin, Renren, etc.)

Others

Q15 How do you talk about your recommendations? (Multiple Choice)


How do you find daily deals Daily Deal websites are the nr. 1 Choice, followed by Aggregators

0% 10% 20% 30% 40% 50% 60% 70%

Others

Location bases services

Weibo / SNS

Friends

Email

Daily deal channels of integrated website.

Daily deal aggregators

Daily deal websites

Q16 How do you find the information about daily deals? (Multiple Choice)


Deals Proximity Majority of respondents looks for deals close to where they live

0% 10% 20% 30% 40% 50% 60% 70% 80%

No

Close to workplace

Close to where Iusually shop

Close to Home

Q17 Do you search for promotions/daily deals in your neighborhoud? (Multiple Choice)

© Dataotuan - blog.dataotuan.com – www.dataotuan.com - Jul. 2012 17

About Dataotuan.com

Dataotuan, a unique worldwide daily deal aggregator & analytics platform wasstarted with 2 goals in mind.

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

2. 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


Dataotuan Sales Tool – Merchants Analytics

• What kind of deals are popular in a city?• Who are the good merchants? Where can you find them?• What is their daily deal history, including price, discount, sold count, etc?• Which merchants are your competitors cooperating with?• What is their pricing strategy to generate a popular deal?

Merchant Analytics

Merchant Store Country Province City District Address Latitude Longitude Nr. Deals

黑土地农家院黑土地农家院 China Shanghai Shanghai Jingan District 静安区北京西路1213号 31.23 121.45 4

Popular Deals

Top Subcategories in ShanghaiShopping-Clothing 11.80%Dining-Hotpot/BBQ 10.20%Leisure-Movie 9.50%

1. Popular sub-categories?

2. Active merchants?

3. Deal history?

4. Deals sites pricing strategy and outcome?

18

Deal History

Start time End time Deal Url Deal Name Website Category Subcategory Nr. Sold Price Value Discount Revenue49 258 550.8 4.6 11892

2012/2/29 2012/3/5 http://sh.nuomi.com/deal/heitudi02.html198元享原价584元的黑土地农家院5至6人套餐！让您足不出沪，就能享受到最原汁原味的东北菜肴和最具特色的关东情调！盆盆精彩，份份满足！Nuomi Dining Local Cuisine 62 198 461 4.3 12276

2012/2/17 2012/3/15 http://t.58.com/sh/21719731622380034【正宗东北特色菜，清明节假期通用】198元享原价463元的黑土地农家院5-6人餐！悠悠黑土地，浓浓东北情。大口吃肉，大碗喝酒，幸运的话还能坐到东北大炕哦！让您足不出沪，就能享受到最原汁原味的东北菜肴、最具特色的东北风情！盆盆精彩，份份满足！可以不扶墙进，但一定会扶墙出哦……58tuan Dining Local Cuisine 27 198 463 4.3 53462012/2/10 2012/3/7 http://shanghai.didatuan.com/team.php?id=28011【南京西路】点评四星商户，品质保证！仅238元，原价575元『东北黑土地农家院』5-7人套餐：长白山红烧鹿筋+板栗烧驴肉+老家石锅烧鲶鱼+小鸡炖蘑菇+汆白肉+老家传统锅包肉+贼正宗哈尔滨红肠+黑土地地三鲜+特色手工大拉皮+拔丝地瓜+粗粮玉米饼+白菜肉水饺！Didatuan Dining Local Cuisine 79 238 575 4.14 188022011/8/30 2012/12/24 http://www.groupon.cn/ShangHai/-5690889004661427184.html仅需￥398元，即可团购原价704元的黑土地农家院8-10人套餐：七彩拉皮+熟食拼盘+金牌手抓骨头+野生黑木耳+招牌红烧鹿筋+野生香煎马哈鱼+板栗烧鹿肉+小笨鸡炖蘑菇+农家满锅香+传统锅包肉+炒山野菜+拨丝香蕉+特色水饺+特色饼！美味实打实，好吃不忽悠！黑土地农家院，正宗东北菜，味道杠杠地！Groupon Dining Dining Others 28 398 704 5.7 11144

Merchart 黑土地农家院

Average


• What is the market status in general and in a specific city? • What is your competitors’ sales & pricing strategy?• Should you adjust your pricing strategy according to market trends?• Should you change the products combination?

Dataotuan Sales Tool – Deal Site Analytics 1

Average Price & Discount of Deal WebsitesDeal Websites Market Share in East China

19

Top Deals Categorizing


Deal Websites Score Card

Dataotuan Sales Tool – Deal Site Analytics 2• Are you doing better than the average? Are you going up or down in ranking?• Who are your competitors? How competitive are they?• Which categories, which regions/cities should you focus on more?

20

Si te AFrom 2011/ 12/ 1 Ti l l 2011/ 12/ 31Chi na

Dining Leisure Life Shopping Ranking Revenue Revenue % Ranking Nr.sold Nr. sold %

Si te A 37% 25% 26% 12% 4 9.80% 2 7.90%

Average 24% 26% 23% 27% - - - -

Price/deal Dicount/deal Nr.sold/deal Revenue/deal Nr.city covered No.1 No.2 No.3

Si te A 108 62% 1331 49832 84 Shanghai Tianjin Hangzhou

Average 142 60% 453 12540 52 Beijing Shanghai Guangzhou

Deal si te nameTi me peri odGeo coveri ng

% per category (revenue) Ranki ng & Market share of the si te

Deal performance & pri ci ng Ci ty covered and top 3 ci ty by revenue

Si te BFrom 2011/ 12/ 1 Ti l l 2011/ 12/ 31Chi na

Dining Leisure Life Shopping Ranking Revenue Revenue % Ranking Nr.sold Nr. sold %

Si te B 12% 23% 17% 45% 3 10.20% 5 5.70%

Average 24% 26% 23% 27% - - - -

Price/deal Dicount/deal Nr.sold/deal Revenue/deal Nr.city covered No.1 No.2 No.3

Si te B 123 62% 1540 58713 97 Shanghai Nanjing Tianjin

Average 142 60% 453 12540 52 Beijing Shanghai Guangzhou

Deal si te nameTi me peri odGeo coveri ng

Deal performance & pri ci ng Ci ty covered and top 3 ci ty by revenue

% per category (revenue) Ranki ng & Market share of the si te


• What is the market status in general?• What is the estimation of the Gross Revenue of the main Daily Deal websites?• What are the revenue trends for the main Daily Deal websites?• Pricing trends & Strategy, category trends, location trends.

Dataotuan Investor Tool

Nr. Deals Trend 2011

21

358, 085

256, 407

124, 602

52, 309

Q1 Q2 Q3 Q4

Nr. Deal s i n totalLocal Servi ce Deal sShoppi ng Deal s

137. 4141. 2110. 9109. 5

497531

1, 015

1, 974

Q1 Q2 Q3 Q4

Average Pri ce

Average Nr. Sol d

Average Price/Nr. Sold 2011

City Market Analytics 2012 Feb.


Dataotuan Geo CoverageDataotuan aggregates and analyzes the daily deal markets in Asia - China, Singapore, Malaysia, Philippines, Taiwan, Hong Kong, IndonesiaEurope – UK, Ireland, FranceOceania - Australia and New Zealand,Africa, Middle East - More countries will follow soon.

DTT Web & Data available

DTT Data available

DTT will cover soon


Dataotuan Tracks & Collects

Dataotuan Tracks

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

Deal TitlePrice (Original, Current, Abs. And % Discount) Number of Sold DealsCategory/Sub CategoryAvailability in TimeCity, District, Latitude/Longitude Weather & more

Deals & Revenue per DistrictNumber of “real’ active Cities/Provinces

Number of DealsGross revenue Province, City, District, Category, Sub Cat.

546 main cities in the world

>30,000 new deals every day

Dataotuan Collects

300 of the main Daily Deal Sites


Dataotuan Map Announcements – 1

Dataotuan has Customizable Deal Maps for each Country


Dataotuan Mobile Announcements – 2

Dataotuan has Mobile, location aware HTML5 websites for each Country


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

Data were collected in the period May/June 2012 in cooperation with Starry Media, a premium survey platform in China

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

Please quote Dataotuan as a source with a link to dataotuan.com/international when you use our report/data

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Technology

China Daily Deal Customer Satisfaction Survey 2012 Q2