uBuyiBuy is doing very well. We can look at their Recent Buys page and determine their revenue thus far.
By looking at sales from the first 9 days since they launched — at that time they had ~20,000 Facebook fans — they’ve sold HKD$299,280 worth of coupons. I believe they take a 20% cut of everything. Not sure how quickly they pay their advertisers, could be Net 30, could be instant. Most coupons save the customer ~50%, e.g. spend 50, get 100. There are also credit card processing fees.
So of that HKD$299,280, 20% is HKD$59,865 or approximately HKD$6651 (~1k USD) per day thus far. Multiplying than times twelve is around HKD$1.7M (~200k USD). I imagine they will likely break into different districts as awareness grows — kowloon, island side, etc. — to try and offer more than one deal per day. Probably good potential to do USD$500k this year just in Hong Kong. They also have Taiwan and Singapore. Taiwan seems to be performing similarly and Singapore is yet to launch.
I can’t tell what their web traffic is since they’ve only been online about a month.
They have been gaining Facebook fans at the rate of 1000 or more per day, which is very impressive. They have nearly 39,000 now — most all of which look to be local, Chinese, Hongkongers, maybe 25 and under (I’m just looking at faces), perhaps the same fan base who listens to MC Jin and Van Ness Wu, their pop-ambassadors. I would suspect these guys are actively telling their fans to go “Like” the Facebook group. Their Facebook page for their Tapai site has 27,000 fans.
The other HK group buying site that I’ve been seeing is Twangoo. It’s up and running, but not with the kind of popularity uBuyiBuy has. They’re offering their second deal this week (they do things by the week) and 7 people have bought in so far, at least the met the deal minimum of 5.
Twangoo has 330 Facebook fans. They mostly look to be Chinese, but with a few more expats mixed in and still all young. Their posts are in English verus uBuyiBuy who posts almost exclusively in Chinese.
With all this said, who is going to win overall in HK? Seems like uBuyiBuy is on it’s way. Thought I’m curious to know their penetration in the expat market. Here’s an interview with ubuyibuy founder on Bloomberg: http://www.executiveinterviews.net/players/mini/default.asp?order=AS04107 He says he was living in the US running a business, used Groupon himself, got a ton of business from it, and decided to head back to Asia to get it started there. We’ll see if he also ends up selling to Groupon. CityDeals from Germany sold for a reported 200M Euro. There are reportedly hundreds of Groupon clones in mainland China.
Is group buying a trend that is going to last forever, one that will become engrained in our buying habits?