Thursday, February 17, 2011

Groupon Singapore

Groupon Singapore

Groupon’s entry into Chinese market has created competition in online sector of group buying. The competition trend will be enhanced over time according to expectations. The existing sites of Singapore and Hong Kong have been purchased by this group and CEO of Groupon’s Hong Kong operations, Mr. Dany Yeung, has said that the company wants to dominate Chinese market.  The company is going to increase its staff to 1000 from 120 during the coming months. This will be done to achieve the goals of company what have been set in the shape of targets for this year. Groupon, the US firm, may become an ally of Tencent. Tencent is a Chinese firm, which is owner of many popular properties in China. This will create Gaopeng, which means the gathering of recognized guests.

Groupon SingaporeGroupon Singapore

According to James Roy, who is China Market Research Group’s analyst, the move of Gaopeng may become sensible for start-up of Americans. Foreign companies of Internet cannot neglect China’s potential due to its huge online population. But when those companies come to China, they realize that many local players are with major performance in local markets. The partnership of Groupon with one of China’s major Internet companies will help it in understanding the local market of China. Tencent’s QQ following will help Groupon to increase its business in China. Many companies of US are very ambitious before they start their work in China, but when they face market competition, they become too optimistic that they complain about China’s business environment. In the end, they leave China due to their disappointment. Still these leavers think that they have better understanding of the market trends.

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