daily deal industry in china q3, 2012 inc. travel special

Dataotuan.comChina Daily Deal Websites

2012 Q3 Report

Data source: Dataotuan.com 2012 Jul. 1- Sept. 30Published: Nov. 20, 2012

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

Table of Contents

Specifications Main Daily Deal Websites Analytics Local Service Deals Comparison Product Deals Comparison Travel Deals Deal Website Verticals Summary Dataotuan Sales/Investor Tools Dataotuan Announcements – Countries, Maps, Mobile Contact

2


A Snapshot of a Day in Daily Deals in Shanghai

3


Specifications 1 – Data Definitions All the data have been collected in the period Jul.1 – Sept.30, 2012. Number of deal sites tracked: 60 Number of cities tracked: 243 Definitions:

Nr. Deals – number of deals closed with the merchants and launched on the deal sites.

Nr. Sold – total number of times that the consumers bought deals. Revenue: Nr.Sold * Current price (the price the consumer pays) Top Deals – the 500 deals which generated the most revenue. Real

estate and car deals are not included in the top deals as they are more likely to be advertisements instead of the real online shopping deals.

4


Specifications 2 - Categories Deals category/subcategory specification by Dataotuan. Local deals – the localized service deals, including dining, leisure and life

services. Normally they are only available for consumers from a specific city.

Dining Leisure Life Shopping Others

Local Cuisine Recreation/Games Photography Food/Beverage Lucky draw

Buffets Film/Exhibitions Car Maintenance Skin care/Make-up Charity donation

Drinks/Dessert Drama/Shows Pet Care Household

General vouchers for supermarkets, gasoline station,

mobile phone minutes, etc.

Asian Food Travel Education/Training Clothing/Footgear

Western Food KTV Medical Services Jewelry/Accessories

Hotpot/BBQ Sports/Fitness Hair/Nail Beauty Kids

Dining Others Leisure Others Beauty/Massage Electronic Products

　　 Life Others Shopping Others

5


2012 Q3 — Market Shares Overall (Services & Products)

The total revenue of local service deals and product deals is around 7.6 billion in 2012 Q3. The top 20 deal sites have 98.3% of the market.

Juhuasuan has the biggest market share (29.7%), influenced by its abundance of product deals .

6

Juhuasuan 29.7%

Meituan 15.1%

Dianping 9.5%

Lashou 6.7%

55tuan 6.4%

Nuomi 6.9%

Manzuo2.6%

Ftuan3.5%

Tuanweihui4.1%58tuan

2.8%

Others12.7%


34.50%

27.20%

22.40%

11.80%

4.10%

Shopping Dining Leisure Life Others

2012 Q3 — Categories Shopping accounts for 34.5% and becomes the top popular category. Dining deals are the 2nd most popular category (27.2%). Leisure follows as the 3rd most popular category with 22.4%.

7


2012 Q3 — Discounts, Prices, Nr. Sold Trends The average Nr. Sold and Price continued to recover in Q3. The average discount was on the same level (59%) as in Q2, Compared to Q1/Q2 2012, the average discount for Life & Shopping is less.

　 Dining Leisure Life Shopping

　 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3

Average Nr.Sold/Deal 258 226 291 332 273 334 110 99 126 801 865 915

Average Price/Deal 110.7 105.2 109.6 149.6 146 175.7 233.8 250.4 318.1 96.8 95.7 120.1

Average Discount 51% 50% 50% 62% 46% 59% 80% 79% 78% 61% 63% 59%

Average Nr. Sold of all

Average Price of all

Average Discount of all

Q3

Q2

Q1

168.6442

59%

152.2421

61%

143.5362

61%

8


2012 Q3 — Top Grossing Subcategories In Q3, Clothing/Footgear was the most popular subcategory. Hotpot/BBQ &Travel were the next most popular subcategories. These two subcategories always sell the best throughout the year.

5.80%

6.30%

9.00%

9.80%

12.90%Clothing/Footgear

Hotpot/BBQ

Travel

Photography

Film

Top 5 Subcategories in Revenue

9


Meituan 20.3%Dianping 13.8%

58tuan3.7%

Manzuo3.1%

Juqi2.5%

Nuomi 9.7%

Lashou 9.1%

55tuan 9%

Juhuasuan5.3%

Ftuan4.4%

Top 11-20 16.8%

Others 1.9%

2012 Q3 — Local Service Deals Overall Revenue of local service deals (Dining/Leisure/Life) in Q3 is about 5 billion. The Top 10 websites accounted for 81.3%. Meituan has the biggest Revenue market share of local service deals (20.3%),

followed by Dianping (13.8%) and Nuomi (9.7%).

10


2012 Q3 — Local Service Deals （ 2 ）

Average price of a local service deal is 185.9 Rmb, Average discount overall is 59%.

141.2144.4145.8185.7119.8 235.7 157.9 202.8 181 289.5

56%

59%59%

63%65%

56%58%

57%

59%58%

0

50

100

150

200

250

300

350

Meituan

Dianping

Nuomi

Lashou

55tuan

Juhuas

uanFtuan

58tuan

Manzu

oJu

qi50%

52%

54%

56%

58%

60%

62%

64%

66%

Average Price: 185.9 Rmb Average Discount: 59%

11


2012 Q3 — Local Service Deals （ 3 ）

In Q3 the regions show the same pattern as always The amount of daily deals launched in East China are still far more than

the other regions. Southwest and especially Northwest China are trailing behind.

Average Nr. Sold Average Price Average Discount Average Revenue Deal Nr.

East China 281 175.9 59% 16684.8 103790

Middle China 231 145.8 58% 12400 30005

North China 332 177.2 61% 20699.3 42096

South China 248 208.2 61% 17028.6 42291

Northeast China 212 127.1 57% 10959.7 23082

Northwest China 296 162.8 61% 16748.5 12074

Southwest China 232 173.7 59% 14240.8 22988

12


2012 Q3 — Product Deals (physical products)

In Q3, revenue of Juhuasuan shopping deals is more than the total revenue of all its competitors combined.

Juhuasuan accounts for 69.7% of Product Deals Revenue. In South China the average deal price is the highest, Northeast China

the lowest.

Others, 2.4%

Top11-20,7.5%

Boletuan,1.2%

55tuan,1.2%

Nuomi,1.3%

Dianping,1.4%

Manzuo,1.6%

Lashou,1.8%

Ftuan,3.5%

Meituan,3.3%%

Tuweihui,7.2%

Juhuasuan,69.7%

13


8.10%

4.50%6.10%

4.10%5.30%

6.10%

8.40%

11.80%

11.40%

6.90%7.80% 7.70% 8.10%

8.80% 8.80%

11.00%

10.70%

11.50%

Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept.

Dianping Meituan

Trend – Travel Deals About 60,000 travel deals have been launched in China in 2012 Q3. Travel, as a subcategory, has the biggest amount in deals number. Travel deals revenue is nearly 600 million, 9% of the total revenue in 2012 Q3. Even for typical local service deal websites, such as Dianping/Meituan, the

share of travel deals is growing.

14


According to data from Dataotuan international, travel deals are not only very popular in the Chinese market, but also abroad.

In most countries Travel is in top 5 by revenue　 Top1 Top2 Top3 Top4 Top5

China Shopping-Clothing Dining-Hotpot Travel Life-Photography Leisure-Film

Singapore Travel Dining-BuffetLife-Beauty/Massage

Leisure-Others Shopping-Electronic

Malaysia Shopping-Electronic Shopping-Others Travel Shopping-Housing Shopping-Jewelry

Philippines TravelLife-Beauty/Massage

Shopping-Electronic Dining-BuffetLife-Hair/Nail Beauty

New Zealand Dining-Western Shopping-OthersLife-Beauty/Massage

Leisure-Sports Travel

Australia TravelLife-Beauty/Massage

Shopping-Housing Shopping-Others Shopping-Electronic

France Shopping-Electronic Shopping-Housing TravelLife-Beauty/Massage

Dining-Western

UK Travel Shopping-ElectronicLife-Beauty/Massage

Shopping-Others Life-Education

Ireland TravelLife-Beauty/Massage

Life-Education Life-Hair/Nail Beauty Dining-Others

TaiwanLife-Beauty/Massage

Shopping-Electronic Dining-Western Dining-Dessert Shopping-Food

International Trend – Travel Deals

15


Deal Website Verticalization After 3 years of development, Groupbuying has seen many verticals growing

in their own niche markets

Maternity & Baby

Skincare & Make-up

Photography

16


2012 Q3 Summary1. More market concentration; The lead group is increasing its lead. In Q3 2012, the revenue of the daily deals is about 7.6 billion. The Top 20

websites accounted for 98.3% market share. Meituan, Dianping & Nuomi make up the top 3 in the local deals’ revenue list. Juhuasuan is leading by far with shopping (product) deals. The revenue of

Juhuasuan shopping deals accounted for 69.7%.

2. Average discount was stable; Average price and Nr. Sold recovered Compared to Q1/Q2 2012, the average discount of Dining/Life/Shopping was

slightly down The average discount of shopping deals in Q3 was more favorable than

Q1&Q2’s, and the average nr. Sold kept increasing.

3. Shopping was the most popular category in Q3; Clothing/Footgear ranked top 1 of subcategory.

In Q3, Clothing/Footgear was the most popular subcategory. Hotpot/BBQ and Travel were the most popular subcategories in previous

quarters 2012. These 2 sub-categories are always bestsellers throughout the year.

17


2012 Q3 Summary Travel Special1. Travel is the new “hot” category Travel, as a subcategory, has the biggest amount in deals number Travel deals revenue is nearly 600 million, 9% of the total revenue in 2012 Q3. Even for typical local service deal websites, such as Dianping/Meituan, the

share of travel deals is growing.

2. International Travel Deals Travel ranks in the top 5 of most published deals in almost all countries

Dataotuan tracks. Travel is the top subcategory in Australia, UK, Philippines, Singapore and

Ireland

18


Data Products For Sale

19


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?z

20

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 122762012/2/17 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

21

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?

22

Site AFrom 2011/12/1 Till 2011/12/31China

Dining Leisure Life Shopping Ranking Revenue Revenue % Ranking Nr.sold Nr. sold %Site 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.3Site A 108 62% 1331 49832 84 Shanghai Tianjin Hangzhou

Average 142 60% 453 12540 52 Beijing Shanghai Guangzhou

Deal site name

Time periodGeo covering

% per category (revenue) Ranking & Market share of the site

Deal performance & pricing City covered and top 3 city by revenue

Site BFrom 2011/12/1 Till 2011/12/31China

Dining Leisure Life Shopping Ranking Revenue Revenue % Ranking Nr.sold Nr. sold %Site 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.3Site B 123 62% 1540 58713 97 Shanghai Nanjing Tianjin

Average 142 60% 453 12540 52 Beijing Shanghai Guangzhou

Deal site name

Time periodGeo covering

Deal performance & pricing City covered and top 3 city by revenue

% per category (revenue) Ranking & Market share of the site


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

23

358,085

256,407

124,602

52,309

Q1 Q2 Q3 Q4

Nr. Deals in totalLocal Service DealsShopping Deals

137.4141.2110.9109.5

497531

1,015

1,974

Q1 Q2 Q3 Q4

Average Price

Average Nr. Sold

Average Price/Nr. Sold 2011

City Market Analytics 2012 Feb.


Dataotuan Dashboard is available for clients:

Near-live market share data – which deal sites are leading in which categories Sales Leads – Find high performing merchants with Merchant Analytics Competitve data – where are daily deals sourced

Dataotuan Dashboard

24

© Dataotuan - blog.dataotuan.com – www.dataotuan.com - Oct. 2012 25

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 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.

243 cities in Mainland China(*)

5000 – 10000 new deals every day

Dataotuan Collects

60 of the main Daily Deal Sites


Dataotuan Geo CoverageDataotuan aggregates and analyzes the daily deal markets in

Asia - China, Singapore, Malaysia, Philippines, Taiwan, Hong Kong, Indonesia Europe – UK, Ireland, France Oceania - Australia and New Zealand, Africa, Middle East - More countries will follow soon.

DTT Web & Data available

DTT Data available

DTT will cover soon


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 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 daily deal websites that unfortunately are not included due to not providing correct data access (api)is groupon.cn.

QQ changed its business mode.It’s not a daily deal site anymore.So Dataotuan excludes QQ's data from 2011 Sep.

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

Contact Dataotuan

We’re happy to help you, please contact us at:

Chinese +86 13761796676 Email: [email protected] +86 13801660890 Email: [email protected]

Data Products datatuan.com Read more on blog.dataotuan.com Follow us on twitter.com/dataotuan

weibo.com/dataotuan Subscribe to our Reports [email protected]

daily deal industry in china q3, 2012 inc. travel special

Technology