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Renren Inc. Message Board

  • airportsedan airportsedan Nov 19, 2012 6:11 PM Flag

    Nuomi is very close if not the #1 LBS group buying site in China.

    If Chase Coleman is buying 65m shares of GRPN, then he would certainly be interested in RENN.Nuomi is very close if not the #1 LBS group buying site in China.

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    • Lashou just closed shop

      Sentiment: Strong Buy

    • According to Hu Chen, co-founder of Tuan800, a Beijing-based think tank of group buying, Chinese group buying market has gone through the blind expansion phase and now has been seeing a new wave of consolidation during which more and more services are being shut down everyday and the big guys are gobbling more market share.

      Hu said that, by this May there’re only 2996 daily deal sites in China, while more than 60% of which isn’t really in operation, down from the peak of nearly 6000 last year. Also, it’s getting harder for the minor ones to gain market share as the Big Ten literally accounted for more than 80% of the market share altogether.

      The big ten, according to Tuan800, includes 58Tuan, Ftuan, Gaopeng, Meituan, DianpingTuan, DidaTuan, Lashou, Manzuo, Nuomi and 55Tuan.

      Meituan claimed more than 400 million in sales in this June, up from 365 million in May. Dianping and 55Tuan generated more than 200 million in sales in May while 58Tuan, Ftuan, Lashou, Manzuo and Nuomi all made it to the 100 million club.

      Chinese group buying service aggregator Tuan800 released a latest report, indicating that by the end of September Chinese group-buying sites shrank to 2919, dropped 42% yoy. The message can be translated into the fact that 5.9 Chinese group buy sites either shut down or pivoted to other ideas every day. 24Quan which use to be in the Top 10 army just announced to close business temporarily due to a investor-founder contradiction.

      It “seems” that group buying is becoming a promising market as consumers can get discounts anytime anywhere with smart phone at hand. It’s estimated that the whole Chinese O2O market will reach 98.68 billion, increased by 75.5% yoy. As the vanguard in O2O business, group buying should have grasped the opportunity and stepped itself up, but the sobering reality is that only 10 out of the remaining 2919 players offer mobile clients, accounting for only 0.3% of the whole.

      An industry insider once said that it’s not likely that consumers installed more than 1 group buying app into their smart phones, so the coverage of mobile clients are of most importance. Adding an app to these group buying sites’ consumer reach points would help them get more exposure among potential users. After nearly two years of wild growing, Chinese group buying services now all look like each other with little differentiation, we’re expect to see an ongoing consolidation in the market till only about 10 left.

      Sentiment: Strong Buy

      • 1 Reply to doctorgreenback
      • Tencent is likely to buy the troubled 24Quan to consolidate its presence in China’s highly competitive group buying market.

        After the website suspended operation several days ago, Lin Ning, CEO of Tencent’s group buying subsidiary Beijing Wangluo Tianxia Life Technology Company Limited told Sohu IT that a major investor of 24Quan has been in active talks with him.

        “We are talking with 24Quan’s investor now, but we haven’t talked about the price. As far as I know, the investor has only contacted us. Employees and resources of 24Quan are valuable to us,” Lin said.

        The investor, Lin said, is Berjaya Corporation Berhad, a leading group in Malaysia.

        A week ago, 24Quan halted operation over a liquidity disagreement between major investors and the company management team.

        Website CEO Du Yinan did not answer calls for an interview.

        In China, 24Quan was once the fifth largest group-buying site by revenue.

        Featuring huge marketing expenses and tiny profit margins, mergers and shutdowns of daily deal sites happen every day in China.

        The number of Chinese daily deal sites slumped by 42 percent to 2,919 by September compared with a year earlier, according to Chinese group buying integrator Tuan 800.

        Wangluo itself is a merger of FTuan and Gaopeng. Ftuan is originated by Tencent, while Gaopeng is Groupon’s Chinese version.

        Sentiment: Strong Buy

    • This won't mean anything until they start reporting increasing ad revenues which was down 14% in 3rd quarter

      • 1 Reply to ruseriousman68
      • I disagree. The entire chinese internet sector reported in line and gave conservative guidance. This means that RENN is not necessarily an anomaly, instead just a growing company in its infancy stage of product development. In many ways mgmt has proven very nimble in acquiring 56 and investing in nuomi as well as renren games. I say hold RENN and add leap year calls to get potential massive returns.

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