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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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