Asian Business Online
Looks at deal-of-the day websites.
Did you know that the couple at the table next to yours in the restaurant in Shanghai got a 50 percent discount on their bill? The wife just came from a hair saloon where she had a RMB 500 styling for only RMB 220, and the husband did a workout with a personal trainer for only half the regular price. They are part of the world if group buying.
Group buying is known in as tua'ngo'u. It is very popular in China, where there is a long tradition of bargaining for goods and services. The idea of group buying is simple: a business can offer a cheaper price for a product when a large group of people are willing to buy it. So group buying is organized through Internet forums. People contact their online friends to tell them about the deal. If enough people show an interest in a product, the deal is on. The customer gets a coupon for a special discount.
Today there are hundreds of deal-of-the-day sites-Singapore holds the record in Asia with over 60 different sites. But the best known and most successful deal-of-the-day site worldwide is Groupon, which offers cut-price deals on everything from restaurants to watches and vegetables. The company started in Chicago, Illinois, in the US, in 2008 and now has over 10,000 employees. The company's name comes from "group" and "coupon"
One of Groupon's campaigns hit the headlines when it's site crashed because over 100,000 users tried to buy a Starbuck's $10 gift card at a 50 percent discount! No saving is too small for a real bargain hunter!