Friday, April 8, 2011

Online Group Purchase in China

After the success of, group purchase attracts more and more attention in China. Statistics show that there are 3,265 online group purchase e-business websites as of March, 2011. And completely copies the business style of Why this online business model becomes so popular in China? Will it succeed and last for a long time?

The popularity of online group purchase is not strange. We mainly follow the way of America on the internet development. With the success of micro blogs we have many internet giants who provided their own micro blogs services.

This business model can bring benefits to consumers, e-business websites and suppliers or wholesalers.

Besides those benefits we should not ignore the disadvantages of this group purchase model. Some disadvantages are obvious. Consumers can't have a completely control of the goods or services that they buy from the websites, the quality and after-sale services. And as to online group purchase platforms they can't have a good understanding of the true demands of the consumers. They can't get the specific locations and tastes of the consumers. And they also can't control the goods quality and after-sale services. The consumers' problems can't be solved timely.

Now we can only conclude that the group purchase model is extensive style. Consumers only choose goods passively. And to a large extent suppliers and platforms are passive in this business model. Whether this business model can succeed and last for a long time, only time will tell.

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