Daily-discount website Groupon has started functioning in China, taking its e-commerce platform to the world's biggest internet market. The site will likely be called GaoPeng.com in China and is a partnership between Chinese internet giant Tencent and Groupon.
US-based Groupon provides discounts online to about 50 million users. Analysts say Groupon could face tough antagonism from Chinese firms offering similar services. "Discounts will always be famous but the real problem is, will Groupon be more famous than the other websites?" said Paul Wuh of Samsung Securities. "There are many well-established organizations already offering the product," Mr. Wuh asserted.
Tabao, China's biggest e-commerce site is one such organization. It launched a group-buying web-site past year. Groupon's Chinese operation, GaoPeng.com, will be sending out daily emails offering discounts at shops in China.
To start with the service is only readily available in Beijing and Shanghai. The plan is to then expand the service to other cities. The website is open from Mon for user registrations, and will begin delivering deals in March.