Groupon Appears to be Gearing up for the China Market

WSJ online by Loretta Chao
Everyone is jumping on the band wagon to get their business into China’s ever-growing market and word is that Groupon Inc is preparing to open operation in China. China has more than 450 million internet users so why wouldn’t Groupon give it a try. Groupon Inc has only been around since 2008 making the company a toddler in the world of business and a baby in China.

“Groupon would be entering a market as hundreds of other locally run websites are already racing to take advantage of the growing popularity of group discounts on the Internet. One group-buying search engine,, estimates transactions on such websites will surpass 16 billion yuan ($2.4 billion) in 2011.”
Groupon has already begun posting job listings for marketing, sales, customers service, and finance on Chinese job websites and colleges.

Being that Groupon is young and has recently had quite a PR issue with its image, I believe the company needs to be aware of its vastly different environment in China and how it operates in a business/cultural sense. “Copies of the commercial quickly appeared on Chinese websites with subtitles, drawing criticism from Internet users who said it was offensive and showed the company’s ignorance about China.”

“Meanwhile, references to the social situation in Tibet are considered taboo in China, where regulators require many discussions of Tibetan independence to be removed from locally operated websites. If Groupon launches a Chinese website, it will need to seek approval from these regulators.

The opportunity for enormous amounts of growth and profit is in China but you have to first get through the government being everything is regulated and you have to gain the trust of the Chinese Consumer and above all not offend the country.
How is all of this going to impact the Company in the US, what if Business in China does better in the US? What is my overall image in China?
questions the Company Should be asking
Ashley F


About internalmarket

This blog and its accompanying Twitter account have been established as social media learning tools for the Internal Communications and Employee Engagement class at Columbia College Chicago. Through this blog, we will share our observations about current events, change management and employee communications theory, and the application of social media in shaping employee engagement.
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