Archive for February, 2011

Bulk Buy Sites, Groupon, FanTong.com, Beeconomics, Living Social, Big Deal, and the 100s more I haven't mentioned

Thursday, February 3rd, 2011

When in northern china, I was on a train when I learnt about FanTong.com. This was a bulk buy site that did pretty well featuring daily deals for meals. How they got the business off the ground was to have 20 employees line in front of each of the restaurants, then enter to speak with the manager about offering 50% discount if enough customers were introduced.

The site has done very well. Some of these Chinese groupon clones have made their owners over night millionaires. Cool 🙂

I later had the chance to speak with some prominent international food establishments in Shenyang City.

These restaurants were quite familiar with bulk discounts. However when faced with the question of repeat advertising on Bulk Discount sites, many restaurants declined to advertise again. It was pretty much a loss when they participated in the "tuan gou" business. It seems the idea of group buy is good for certain types of industry, such as the spa business, or a skating ring where the operator needs the place to be filled on week days…

International restaurants that already have recognition and steady flow of customers tend not to require these big deal services, since its not profitable to run the campaigns.

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