According to the Wall Street Journal, deal-of-the-day company Groupon Inc. is
preparing to expand its flourishing market into China. The company has yet to comment, though
open Groupon staff positions have been posted throughout China.
“The largest group-buying site is hiring in Shanghai!” one ad reads, according to the
Journal. “Groupon is the fastest growing company in history… and it’s now starting its Chinese
company,” reads another.
The Chicago-based company started in 2008 with basic group discounts at local
restaurants and businesses. Since then, Groupon has expanded both throughout the U.S. and
internationally. According to Forbes, Groupon is on track “to make $1 billion in sales faster than
any other business, ever.”
With that information in mind, it is expected for most to predict that Groupon will
succeed enormously in China.
Celeste DiFerdinando, a junior economics major, said she is thrilled to see the company
growing and that she has high hopes for its expansion.
“I recently began using Groupon and it’s so cool!” she said. “It’s already so successful
here in the U.S., but I don’t think enough people even know about it yet. More development will
definitely keep Groupon moving in the right direction.”
Although Groupon has been successful with prior expansion, will the same hold true for
China? Groupon relies heavily on the Internet for its market, and China brings in over 450
million Internet users, more than any other country. As a result there is much more domestic
competition for group discount companies, according to the Journal.
There is also tension with Groupon in China due to controversial Super Bowl
advertisements this year that made jokes about the political situation in Tibet. The ads drew
criticism in both the U.S. and China, which could negatively affect the company when it
launches in China.
“I definitely see how the ads came off as offensive,” said Dahna Shimony, junior
psychology major. “It doesn’t give them the best start in China, but I have a feeling they will still
be able to succeed despite the controversy.”