We told you last week that winter is coming for net startups in China. And weve been following the floundering of Groupon in China – short version: things are going poorly for them.
Today, the Economic Observer is reporting some more grim news for group buy sites in China: the competition is fierce and the rewards for victory are scant. This is something you probably already knew, but you might still be surprised by the numbers: China has over 5,000 group buy websites, 3,000 of which were launched in the first half of this year. And every single one of the nations top ten group buy sites is losing money, according to the CEO of 55tuan, which is one of the top ten sites by most reckonings.