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People's Daily Online>>China Business

Facing hard times, group buy sites get rational (2)

By Chen Jing (The Economic Daily)

15:36, December 02, 2011

Group buy becoming more expensive for consumers

According to the data of, the group purchase discount has been decreasing steadily since last year, from 67 percent to around 62 percent in the third quarter of this year. Among all group purchase items, restaurant, food and beverage always have a discount of less than 55 percent.

The decline in group purchase discounts indicates that with the downsizing of these websites, the vicious competition for off-line resources is waning, and it is less likely to see a group buying website selling products at a much lower price without gaining profits.

Group buying websites have started to re-focus on bargaining power. Raising the group purchase discount can help them guarantee certain operating margin and survive longer in a stressful market environment.

Meanwhile, as the customers are becoming more mature, they have higher demands for products and are not solely concerned with finding the best price. Furthermore, high-quality brick-and-mortar merchants also do not want to see huge discounts hurting the reputations of their brands. The combination of these factors is forcing the group purchase sector to become more rational, and the group buying fever is cooling down.

【1】 【2】 【3】

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