China Groupon-Gao Peng Will Face Powerful obstructions In China Market

China Groupon-Gao Peng Will Face Powerful obstructions In China Market

The US company Groupon is to launch a Chinese version of the discount website famous for its "deal-of-the-day" business model in a joint venture. It will formally join forces with Tencent, an internet giant in China, this week.

But the company's entry into the Chinese market has not been as easy as it had expected. Its strategy of acquisition, which had succeeded in many other countries, didn't work when they planned to reach the Chinese mainland last year, as local providers preferred to remain independent, increasingly backed by their own venture capital providers.

the launch date of Groupon in China might be further delayed to March and it aslo cann't be expected,because they obviously feel confused and is not acclimatized,according to the CEO of China electronics wholesale company ePathChina.

"The Groupon comes here with well-established brands, ample capital and global management expertise, but local providers can be very, very competitive, and it may be a very, very difficult market for them." Said Yide Huang,the CEO of ePathChina.com.

Many Chinese group purchase websites have begun to promote themselves with advertisements in the face of Groupon's entry.It is no doubt that the Groupon's entry will bring influence to the local group sites.

In addition, new platforms for the group buying market have also been boosted in China. Taobao, China's biggest online retailer, launched its group purchase platform on Wednesday and welcomed all the group purchase websites and providers to use the platform for promotion.

On the same day, Qihoo 360, a search solution provider on the Internet and mobile platforms in China, also launched its group purchase guide platform with over 200 domestic group purchase websites joining forces.

According to ePathChina's Yide Huang,with the furious defense and resistance of the local site, the situation of the Groupon in China seems to be tense and negative.

Huge Chinese market, have always attracted the attention of the global giants. Many of them have tried to enter China market. Even though they are like gangbusters all over the world to conquer new markets sucessfully, they often then sink like a stone in China. The ebay, Amazon, Google are the vivid examples failing at last in China market. now the world's giant groupon, is also prepared to enter China, so let us wait and see the outcome.

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