Chinese group-buy site Meituan recently closed experimental branches in four fourth-tier cities and transferred the branch managers to nearby cities with greater consumer spending power. The four cities were Chifeng in Inner Mongolia, Longyan in Fujian, Yulin in Guangxi, and Ma'anshan in Anhui. According to figures from Meituan, the company currently has branches in 82 cities nationwide.
Meituan VP Wang Huiwen said that the experiment proved that smaller cities needed more time to accept group buying and now is not the time for comprehensive group buy sites to blindly expand into those areas. Wang said that Meituan completed its H1 2011 branch expansion plan in Q1 2011, and moving forward will concentrate on providing the best service possible to consumers.