Groupon's Chinese site begins offering online deals

Groupon is partnering with Chinese Internet firm Tencent to break into the country's group buying market

Groupon's China site at GaoPeng.com began offering discounted deals to online buyers on Wednesday, as part of the company's push to break into the country's group buying market.

GaoPeng.com currently offers discounted deals in Beijing and Shanghai, operating with the same business model the company used in the U.S. to make group buying popular.

One of the first deals GaoPeng offered in Beijing was a discount at an indoor hot springs resort that was about 75 percent off its original price. More than 1,400 people had signed up for the deal by early Wednesday evening.

Groupon launched its GaoPeng site at the end of February, as a joint venture with Chinese Internet giant Tencent. Tencent is the operator of the country's most popular instant messaging service QQ, which has 647.6 million active accounts. When registering to buy a discount deal at GaoPeng.com, customers can easily sign on using their QQ account number.

Group buying is a form of e-commerce that works by offering attractive deals on discounted products and services like restaurant meals or even photography courses. The discounts, however, are only offered if enough users decide to buy into the deal. Once the threshold is reached, the discount is given to all those who participated.

While Groupon has become the leader of the group buying trend in the U.S., the company is only just beginning to start its operations in China. The country has the world's largest Internet population at 457 million Internet users.

The company will have to compete in a market already filled with rivals that have taken Groupon's business model and made it their own. The country already has 3,238 such sites, all of different sizes and scope, according to Tuan800.com, which aggregates group buying sites in China.

GaoPeng's website so far has little difference with other local Chinese group buying sites, said Hu Chen, a co-founder of Tuan800. This is because the majority of the domestic sites in China were all following Groupon's example when it became popular in the U.S, he added.

"I can already see GaoPeng's efforts to localize the platform," Hu said, noting the choice in the discounted deals, as well as the way GaoPeng has been holding drawings to award Apple iPhones to registered followers of its Chinese microblogs.

"GaoPeng has paid a lot of attention to luring users. In the past two weeks before deals were being offered, the site was always encouraging users to register," he said. "The bigger challenge is how will it establish a good reputation within China's wide-ranging group buying market."

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags internetGroupone-commerceTencent

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Michael Kan

IDG News Service
Show Comments

Cool Tech

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Breitling Superocean Heritage Chronographe 44

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?