Groupon Launches in China: GaoPeng

Groupon has officially launched in China as GaoPeng. According to Bloomberg, it will cover Beijing and Shanghai first and then expand to other cities. Groupon faces competition from at least two other similar services: Lashou.com and Meituan.com. In China group buying is called “tuangou,” although that refers to mobs showing up at local stores.

China’s largest Internet company Tencent Holdings Ltd. is an investor. And while there’s no guarantee of success for Groupon — think of how Google has struggled in China — the sheer size of the Chinese market is awesome. There are more than a billion mobile users and more than 457 million Internet users in the country.

Just over a third of Groupon’s $760 million in 2010 revenue was from outside the US. Success in China could potentially push that number to more than 50% in a short time.

A foothold in China also significantly bolsters the potential strength of an IPO for Groupon.

See related: Groupon by the numbers.

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7 Responses to “Groupon Launches in China: GaoPeng”

  1. Matt says at

    Gaopeng means “higher friend”

  2. Greg Sterling says at

    Thanks

  3. Matt says at

    I think Groupon’s chance of success in China will not be that high because China always has a home grown equivalent of US Internet companies like facebook, ebay, amazon, etc…Partnering with a Local would help.

  4. Greg Sterling says at

    They have Chinese investors/partners. Tencent is one of them.

  5. Travis Wright says at

    You’d think they would at least put asian models on their ads, instead of white Anglo Saxon models.  lol.

  6. Greg Sterling says at

    Yes. It’s an interesting/curious choice. 

  7. online english editing says at

    Groupon took Gaopeng as domain name, because groupon.cn was not available. The groupon.cn was already taken by a Chinese, and protected by Chinese local government (to register a .cn domain name, the company must have a chinese license and a Chinese ID card), so the real Groupon took gaopeng.com . The groupon.cn is also a group buy web site, but it’s a fake one, as lots of other things….

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