Meituan Slows H2 2011 Expansion Plans
Tencent Tech, 8/24/11
Chinese group buy site Meituan will be cautious in its expansion to new cities in H2 2011, said VP Wang Huiwen, citing potential management and customer satisfaction issues if Meituan expands too rapidly. Market conditions have yet to mature in many cities, according to Wang, and so expansion will occur at a slower pace.
Meituan previously launched a group buy site acquisition plan during its one-year anniversary in March, and still has funds remaining after making several purchases. Meituan now plans to adopt a "wait-and-see" attitude, although Wang said any future acquisitions will also be complimentary businesses.
Wang said that at the company's first anniversary in March this year, the idea was put forward to acquire several other industry websites; several purchases of other companies were made, but the total funds reserved for the project have yet to be used up. Wang said the current plan is to save the remaining funds until a complementary acquisition deal can be made involving certain Meituan operations.
Keywords: strategy Internet Meituan Wang Huiwen e-commerce group buying M&A
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