News / Asia

China Looks for Online Bargains as Consumer Prices Rise

Chinese staff members look at the Taobao online shopping website at a five-story showroom launched by China's e-commerce giant Taobao in Beijing, China (File Photo)
Chinese staff members look at the Taobao online shopping website at a five-story showroom launched by China's e-commerce giant Taobao in Beijing, China (File Photo)

Earlier this week, when China released its economic figures for July, the average cost of goods - or Consumer Price Index - was up 6.5 percent, its biggest increase in three years. Leading the way was an increase in food prices, including a spike in the cost of pork.  One of the ways Chinese consumers are coping with the pinch from inflation is by turning to the Internet and shopping in groups.

Group on

From deals on vacations, to hotels, restaurants, food and theatrical performances, group-buying websites in China are offering a dizzying array of deals for web-savvy consumers.

And, the competition online is intense. According to a recent report by Technode.com, an online blog that focuses on tech news and opinions in China, there are more than 1,000 online group buying websites in China.

Wu Bo, the CEO of Lashou, one of China's leading group-buying websites, says the market is developing fast in China and still has room to grow.

“Group buying fits very well with Chinese people's habits, said Wu Bo. "They are very keen on saving money, and are also sharp consumers. And also because of the development of the Internet, it is possible to find a lot of cheap and reliable products on the Internet.”

Coupons

Each day, most group buying websites post batches of coupons from online merchants that offer customers a discount once a set number of people sign up to participate in the deal.

The front page of Lashou's website on Thursday included deals on a dinner buffet and spa at a Beijing hotel, tickets to a marine park in Shanghai and cosmetics.

Most offers advertise at least a 50 percent discount.

Dataotuan.com, a website that analyzes China's massive daily deal community, says Lashou is leading China's group buying market in terms of revenue.

CEO Wu Bo says Lashou went online in March of last year and is now in 180 cities in China, employing more than 6,000 people.

“We often joke with one another and say we can control the Consumer Price Index because our discounts are comparatively lower, and from the consumers' perspective we offer good service and they spend less money.”

In a report on group-buying sales released late last month, tuan800.com said China saw more than $100 million in sales during the first half of the year. And that was just for 17 major group buying sites.  Tuan800.com has previously said it expects group buying sales to reach $2.5 billion this year.

Gaining popularity

Zuo Xuan, a 30-year old woman who frequently shops online and has been using group buying sites for several years now, says there is a connection between the rising cost of goods in China and the popularity of online buying.

“I think that with inflation rising group buying became more popular. There definitely is a link there. But I don't think that inflation is the only reason for group-buying's success,” said Zuo.

She says that one of the reasons why group-buying has become so popular with her and others, is because of the boom in online buying that China has already experienced.

“People got used to buying things online and then slowly they turned to group-buying because it's even cheaper,” she said.

However, she says that cheaper and better goods do not always go hand in hand. As prices go down, Zuo Xuan adds, the quality of goods is an increasing concern, and is something she pays close attention to when she shops online.

Penny pinchers

Advice about how to save money is abundant online in China.

One website, Macaoyuan, features a popular posting named 30 Money Saving Tricks, which is geared towards what it calls smart penny pinching women in Shanghai.

Some of its money saving tips include shopping after 9:00 p.m. - a time when it says many supermarkets discount salads, cooked foods, pastries and fruit. When traveling, it recommends staying in university guest houses, which can be cheaper than economy hotels.

Not everyone thinks group-buying and shopping online is the best way to save money.

Tom Shi, who works in the computer industry and is an avid Internet user, says he would rather put his money in stocks. He says few of his friends are frequent users of group-buying websites.

“Perhaps it's because group-buying's influence is just not deep enough yet and its advertising hasn't been dynamic enough to reach those around me,” he said.

However, Shi says some products could pique his interest in group-buying. He says that if computers and other electronics were being sold with big discounts, he would consider group-buying for that.

You May Like

Taliban's New Leader Says Jihad Will Continue

Top US Afghan diplomat also meets with Pakistani, Afghan officials following news of Mullah Omar's death More

Video US Landmark Pushes Endangered Species

People gathered in streets, on rooftops in Manhattan to see image highlights that covered 33 floors of Empire State Building More

World’s Widest Suspension Bridge Being Built Over Bosphorus

Once built, Yavuz Sultan Selim Bridge will span 2 kilometers with about 1.5 kilometers over water, and will be longest suspension bridge in world carrying rail system More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Astronauts Train Underwater for Deep Space Missionsi
|| 0:00:00
...    
🔇
X
George Putic
July 30, 2015 8:59 PM
Manned deep space missions are still a long way off, but space agencies are already testing procedures, equipment and human stamina for operations in extreme environment conditions. Small groups of astronauts take turns in spending days in an underwater lab, off Florida’s southern coast, simulating future missions to some remote world. VOA’s George Putic reports.
Video

Video Astronauts Train Underwater for Deep Space Missions

Manned deep space missions are still a long way off, but space agencies are already testing procedures, equipment and human stamina for operations in extreme environment conditions. Small groups of astronauts take turns in spending days in an underwater lab, off Florida’s southern coast, simulating future missions to some remote world. VOA’s George Putic reports.
Video

Video Civil Rights Leaders Struggled to Achieve Voting Rights Act

Fifty years ago, lawmakers approved, and U.S. President Lyndon Johnson signed, the Voting Rights Act of 1965. The measure outlawed racial discrimination in voting, giving millions of blacks in many parts of the southern United States federal enforcement of the right to vote. Correspondent Chris Simkins introduces us to some civil rights leaders who were on the front lines in the struggle for voting rights.
Video

Video Booming London Property a ‘Haven for Dirty Money’

Billions of dollars of so-called ‘dirty money’ from the proceeds of crime - especially from Russia - are being laundered through the London property market, according to anti-corruption activists. As Henry Ridgwell reports from the British capital, the government has pledged to crack down on the practice.
Video

Video Hometown of Boy Scouts of America Founder Reacts to Gay Leader Decision

Ottawa, Illinois, is the hometown of W.D. Boyce, who founded the Boy Scouts of America in 1910. In Ottawa, where Scouting remains an important part of the legacy of the community, the end of the organization's ban on openly gay adult leaders was seen as inevitable. VOA's Kane Farabaugh reports.
Video

Video 'Metal Muscles' Flex a New Bionic Hand

Artificial limbs, including the most complex of them – the human hand – are getting more life-like and useful due to constant advances in tiny hydraulic, pneumatic and electric motors called actuators. But now, as VOA’s George Putic reports, scientists in Germany say the future of the prosthetic hand may lie not in motors but in wires that can ‘remember’ their shape.
Video

Video Russia Accused of Abusing Interpol to Pursue Opponents

A British pro-democracy group has accused Russia of abusing the global law enforcement agency Interpol by requesting the arrest and extradition of political opponents. A new report by the group notes such requests can mean the accused are unable to travel and are often unable to open bank accounts. VOA's Henry Ridgwell reports.
Video

Video 'Positive Atmosphere' Points Toward TPP Trade Deal in Hawaii

Talks on a major new trade agreement among 12 Pacific Rim nations are said to be nearing completion in Hawaii. Some trade experts say the "positive atmosphere" at the discussions could mean a deal is within reach, but there is still hard bargaining to be done over many issues and products, including U.S. drugs and Japanese rice. VOA's Jim Randle reports.
Video

Video Genome Initiative Urgently Moves to Freeze DNA Before Species Go Extinct

Earth is in the midst of its sixth mass extinction. The last such event was caused by an asteroid 66 million years ago. It killed off the dinosaurs and practically everything else. So scientists are in a race against time to classify the estimated 11 million species alive today. So far only 2 million are described by science, and researchers are worried many will disappear before they even have a name. VOA’s Rosanne Skirble reports.
Video

Video Scientists: One-Dose Malaria Cure is Possible

Scientists have long been trying to develop an effective protection and cure for malaria - one of the deadliest diseases that affects people in tropical areas, especially children. As the World Health Organization announces plans to begin clinical trials of a promising new vaccine, scientists in South Africa report that they too are at an important threshold. George Putic reports, they are testing a compound that could be a single-dose cure for malaria.
Video

Video 'New York' Magazine Features 35 Cosby Accusers

The latest issue of 'New York' magazine features 35 women who say they were drugged and raped by film and television celebrity Bill Cosby. The women are aged from 44 to 80 and come from different walks of life and races. The magazine interviewed each of them separately, but Zlatica Hoke reports their stories are similar.
Video

Video US Calls Fight Against Human Trafficking a Must Win

The United States is promising not to give up its fight against what Secretary of State John Kerry calls the “scourge” of modern slavery. Officials released the country’s annual human trafficking report Monday – a report that’s being met with some criticism. VOA’s National Security correspondent Jeff Seldin has more from the State Department.
Video

Video Washington DC Underground Streetcar Station to Become Arts Venue

Abandoned more than 50 years ago, the underground streetcar station in Washington D.C.’s historic DuPont Circle district is about to be reborn. The plan calls for turning the spacious underground platforms - once meant to be a transportation hub, - into a unique space for art exhibitions, presentations, concerts and even a film set. Roman Mamonov has more from beneath the streets of the U.S. capital. Joy Wagner narrates his report.
Video

Video Europe’s Twin Crises Collide in Greece as Migrant Numbers Soar

Greece has replaced Italy as the main gateway for migrants into Europe, with more than 100,000 arrivals in the first six months of 2015. Many want to move further into Europe and escape Greece’s economic crisis, but they face widespread dangers on the journey overland through the Balkans. VOA's Henry Ridgwell reports.
Video

Video Stink Intensifies as Lebanon’s Trash Crisis Continues

After the closure of a major rubbish dump a week ago, the streets of Beirut are filling up with trash. Having failed to draw up a plan B, politicians are struggling to deal with the problem. John Owens has more for VOA from Beirut.
Video

Video Paris Rolls Out Blueprint to Fight Climate Change

A U.N. climate conference in December aims to produce an ambitious agreement to fight heat-trapping greenhouse gases. But many local governments are not waiting, and have drafted their own climate action plans. That’s the case with Paris — which is getting special attention, since it’s hosting the climate summit. Lisa Bryant takes a look for VOA at the transformation of the French capital into an eco-city.

VOA Blogs