Groupon’s China Site Big in Visits, Behind in Sales

Groupon’s China Site Big in Visits, Behind in Sales

高朋团购--低折扣的餐饮、SPA、健身、美容 - GaoPeng.com

About a month after offering its first discounted deals, Groupon’s China site is attracting big user numbers, but still lags behind the local competition in sales, according to a group-buying aggregator in the country.

The U.S. company’s site at GaoPeng.com represents its push into China, which has 457 million Internet users. Groupon is already popular in the U.S. as a promoter of group buying, a new form of e-commerce that is also taking off in China. Group buying works by featuring steep discounts on goods. Enough users, however, must buy into a deal in order for it to be offered to all who purchased it.

While Groupon has achieved success in the U.S., China’s group buying market is already filled with domestic competitors. The country now has 4,015 such sites, all of different scope, with some focusing on certain cities, according to group-buying aggregator Tuan800.com, which offers an online portal to group-buying sites.

China is a hard nut to crack. Very different market to many other places.

RenRen Inc. in 25 Slides

On April 15, 2011 Renren Inc. filed its F-1 for IPO on the NYSE under the ticker RENN. Beijing-based Renren Inc. includes the real-name social network Renren, the games producer Renren Games, and the group-buying site Nuomi.

The initial offering aims to raise $508 to $580 million and values the company at approximately $4.3 billion. Here’s what you need to know about Renren Inc. in 25 slides!

Note: I recently joined iChinaStock.com, which reports on Chinese companies publicly-listed in the US. We’re creating a series of iChinaStock ”Inside” profiles of publicly-listed (or soon-to-list) Chinese firms. Renren Inc. is the first in the series and I thought it’d also be of value to the TechRice audience.

Business Asia: Inside the Mind of a Risk Taker – WSJ.com

 

The past few years have seen no shortage of commentary about the comparative economic environments in China and India, where growth and the rise of enterprising classes have gone hand in hand. Yet we have very little data to help us understand how entrepreneurs in these countries think and what motivates their decisions and actions. A new survey of more than 4,000 entrepreneurs, business managers and aspiring entrepreneurs, conducted by YouGov and released today by the Legatum Institute, sheds light on the countries’ respective enterprising classes—and raises some questions for policy makers and investors.

Entrepreneurs in both countries share a high degree of bullishness. Nearly half of the respondents believe their societies are more welcoming of entrepreneurial activity than they were 10 years ago, and only one-quarter in India and one-third in China believe that the global financial crisis has seriously hampered the prospects for new businesses. The vast majority believe their lives will improve dramatically in the next five years.

Indian entrepreneurs paint a more relational and organic picture. Twenty-one percent cite family expectations as the source of their entrepreneurship compared to 9% in China, and 27% of Indians cite the inspiration they glean from knowing another entrepreneur, compared to 18% in China.

[BAstreeter]

This difference in inspiration and motivation manifests itself in many ways. The relational Indian model of business start-ups is evident in enterprise financing, where 49% of business owners rely on family resources to start their enterprise, compared to only 25% in China. Chinese entrepreneurs are much more dependent on banks, with 49% taking out loans compared to 27% in India.

There are also significant differences in how entrepreneurs see themselves relating to their policy environments. In India, 81% of business owners say that jugaad, the ability to improvise and find ways around prohibitive rules and institutions, is important to business success. In China, 93% of business owners say guanxi, the networks and relationships (primarily with the state) necessary to succeed in business, are important to their own success. Generally, enterprising individuals in India believe they succeed in spite of the state, while in China they think they succeed through their connections to it.

This is an excellent read, and makes some interesting points. Follow the link to see the whole article. I’m not sure where HK would fall within this spectrum, any thoughts?