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China's Group Buy Users Reach 42 Mln in H1 2011

DoNews, 10/19/11

China's group buy users grew 125% PoP compared to the end of H2 2010 to reach 42.2 mln in H1 2011, accounting for 8.7% of Chinese internet users, according to the China Internet Network Information Center's (CNNIC) 2011 China Group Buy User Behavior Survey.

Group buy penetration among eastern China internet users reached 10.5%, while penetration in central and western China reached 7.1% and 6.7% respectively.

73.5% of users purchased dining group buy deals, while 58.5% bought entertainment deals, 43% bought household goods, 28.4% bought consumer electronics, 27.2% bought cosmetics, 15.3% bought tourism deals, and 10.8% participated in sports and outdoor activity-related deals. 59.9% of users bought physical goods.

68.5% of survey respondents visited group buy directory websites during H1 2011, while 52.2% directly visited particular group buy sites, 32.4% received group buy e-mail newsletters, and 25.1% found group buy deals via online search.

85.4% of survey respondents considered price discounts the most important factor in deciding whether to join a deal. The second most cited factor, with 57.9%, was whether the user needed the item or service for sale. 52.5% of users said the service provider's location was important, ranking third.

Women composed 53.9% of total users, while 73.5% of users were in the 20-39 year-old demographic segment. 35.9% had a university or higher level education. 39.4% had a monthly income ranging from RMB 2,000 to RMB 5,000. 29.4% were white collar professionals, and 54.5% were unmarried.

80.3% of respondents found group buy sites relatively or extremely trustworthy, while 87.1% reported feeling satisfied or very satisfied with their purchase. 82.1% said they would definitely participate in a group buy deal again, while 14.8% said they might do so.

45.6% of respondents had at least one unpleasant group buy experience, 71.6% of whom said a product or service did not match its online description while 40.3% said they experienced poor customer service from a merchant. 28.6% were unsatisfied because a delivery did not arrive on time.

Keywords: market size growth rate national statistics B2C Internet penetration users H1 2011 e-commerce segmentation group buying user habits

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The information contained in this newsletter is based upon sources that Marbridge Consulting believes to be reliable, and we have made every effort to translate the original articles or article excerpts as faithfully as possible. However, Marbridge Consulting makes no warranty of and assumes no legal responsibility for the accuracy of either the original source material or the English language translations.

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