Archive for the 'Groupon' Category

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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Groupon, Adwords and Google

Tuesday, January 18th, 2011

Google offered to buy Groupon for $6 billion which was turned down. Adwords belongs to Google and Groupon heavily uses this to advertise their services locally.

Hypothetically, if Groupon won't accept Google's offer, Google could turn around and say, "fine, no more advertising your business on our adwords platform." Followed up by their famous Google Ban cut and paste email summarised as "We have the right to not accept advertising based on our discretion. Our privcy policy allows us to not disclose why."

That's Google telling Groupon, "Don't make an enemy out of me, or I will squash you like i did to 100,000 advertisers.  Work with me or no LOCAL advertising for you."

Except this time, Groupon has the financial muscle to swing back. Just like China smacking Google down a few notches and forcing Google to heavily reinvent their search for the China market, much to Google's dismay.

Ah well… inception scenarios over… time for us to start selling online.