Gaopeng posts loss due to stiff competition
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Shanghai Daily, October 26, 2011
Gaopeng, which is partly owned by Groupon, reported a net loss of US$46.5 million since it was launched in March in China, forcing it to lay off staff and close its offices.
In August, more than 350 employees at Gaopeng lost their jobs nationwide as its expansion into second- and third-tier cities outstripped its ability to generate enough revenue. This also caused Gaopeng to close offices.
The firm reported US$2.14 million revenue by the end of September on the Chinese mainland, according to Groupon, the world's biggest daily deal site, and the parent of Gaopeng.
After more than six months of operations, Gaopeng is still considered a small player in the industry, having only one-tenth the monthly visitors of market leaders like Juhuasuan and Lashou in August, according to Internet consultancy iResearch Inc.
Hundreds of small group-buying sites were shut down last month, said a latest report by eTao.com, the online shopping search site of Taobao.
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