Chinese Group Buying Sites: Go Home Groupon!

We’ve known for some time that Groupon has more than an idle interest in China. Earlier this month it was reported that the Chicago-based daily deals provider was in China, in an attempt to form a partnership with that country’s largest Internet service portal, Tencent. This would give Groupon a running start into the Asian group buying market.
Now Chinese group buying sites are threatening to blacklist any of those that go to work for Groupon in an attempt to prevent the company from poaching their workers. Groupon hasn’t announced their move in any mainland China markets yet but rumors have been making their way across the internet that the US based company is already hiring workers to man their China-based daily deals site.
According to Xu Yan, an employee at Ftuan.com, a group-buying site in China, Groupon is working with ten employment agencies to hire workers away from China’s other group-buying sites. He also said that Groupon is competing unfairly in hiring. This has caused 20 of China’s major deals sites to implement the stringent measures as a means of actually fending off Groupon’s entry into the country.
In a post on Mobinode a blog about Asia tech industry:
So here is the plan for Groupon’s group-buying Chinese market,
Recruiting >1000 staff and operating in >200 cities in China. And according to a headhunter, he says the number of staff they are looking for is 4000!
Site fully launched in May 2011, which means only 4 months Groupon wants to lead the Chinese market.
Rumor says Groupon might us Groupons.com (which is registered under Groupon) for China. But I really doubt it, not many Chinese understand the English words ‘Groupon’ and few of them would remember the ‘s’ in the end;
With Tencent’s dumping its millions users, strong local connection and Groupon’s $$$ support, unlike any other foreign web company, Groupon looks so aggressive and crazy this time.
So how’s Chinese Groupon-clones going to fight back? It says that several leading Group-buying site, including Manzuo, Lashou, FTuan, 58 etc have agreed to form an alliance against Groupon’s intrusion. The wolf is coming!!!
None of the Chinese sites said to be taking such radical steps could be reached for a statement and as usual Groupon does not comment on such matters.
Not all of China’s other group buying sites are so anti-Groupon. “We are open to hiring anyone. We just want the best,” said director of operations for Shuangtuan.com, Wang Wenshuo. He added that they were not really worried about Groupon. “The China market is very different. The culture and the Internet habits are all different. So it will take longer for them to adapt themselves to fit China.”















