Rumor: US Group Buy Site Living Social to Acquire Miqi
CCID, 8/10/11
An industry source claims that US group buy site Living Social plans to move into China with a vertical group buy site, and has settled upon cosmetics group buy site Miqi.cn as an acquisition target.
The source described Living Social's global expansion strategy as considerably more cautious than Groupon's, as the company has found that gross profit for general-purpose group buy sites in China is a consistent 5% to 10% -- considerably lower than the 30% to 50% typical in the US market.
Miqi.cn CEO Ma Qiang denied the report.
Editor's Note: For more information on this topic, please see "Living Social in Talks with Tuanya to Enter China," MD 1/20/11 issue.
Keywords: foreign investment Internet profit strategy Miqi Ma Qiang e-commerce group buying M&A Living Social
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