Doing a Groupon business may not be easy in China as you have to face a tough competition from hundreds of Groupon-clones. However, it does not mean there is no chance for startups to survive and grow. There could be a way out if you focus on a niche market and certain geographic region.
An friend just called me and confirmed that Jumei, the leading group-buying site with focus on cosmetics product, has acquired its competitor, the 2nd largest group-buying site in this vertical market, Fenpier. The deal has been closed but the details are not clear yet. Jumei, launched in March 2010 is founded by Leo Chen who got his MBA in Stanford university at the age of 26. Unlike many other group-buying sites which compete with each other on the number of transaction per deal, Jumei’s top interests is the quality of product and the price as it only focus on cosmetics and female as the main target customers. Jumei grew super fast in past several months. It just moved into a new spacious office and it said that it has 2000 (m2) warehouse right now.
Jumei is angel-invested by Xu Xiaopin, co-founder of NewOriental, the largest provider of private educational services with main focus on English and other foreign language training. Xu is also the investor of Jiayuan, the leading online dating site, and Lightinthebox, the famous online B2C site focus on China wholesale business. In August 2010, Jumei’s invested by Sequoia Capital.
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