Global Market Data
Global News Journal
Pakistan: Now or Never?
Front Row Washington
David Cay Johnston
The Great Debate
Reuters Money Blog
Personal Finance Video
Life & Culture
Jessica Simpson pregnant with first child
31 Oct 2011
Kim Kardashian Divorce Jokes: The Best of Twitter
31 Oct 2011
Kansas city missing baby case becoming a circus, critics say
31 Oct 2011
MF Global collapses under euro zone bets
Insight: Firms to charge smokers, obese more for healthcare
30 Oct 2011
Insight: U.S. firms to charge smokers, obese more for healthcare
Two abortion clinic employees plead guilty to murder
Jobless US vets say military experience not valued
Pilgrims flock to Mecca to perform annual haj
Mon, Oct 31 2011
New CPR technique revives man after 63 minutes without pulse
Thu, Oct 27 2011
UNESCO gives Palestinians full membership
Mon, Oct 31 2011
China's Groupon clone files for $100 million U.S. IPO
Groupon's scaled back IPO to raise up to $540 million
Fri, Oct 21 2011
Groupon cutting back size of IPO: sources
Wed, Oct 19 2011
Insight: What a stronger Chinese yuan means for the U.S.
Wed, Oct 5 2011
Analysis & Opinion
BRICs split on euro zone rescue
M & A wrap: MF Global files for bankruptcy
Global Deals Review: 2011 Q3 »
Global Deals Review: 2011 Q2 »
Global Deals Review »
Inflows Outflows »
Tue Nov 1, 2011 3:15am EDT
(Reuters) - China's leading daily-deals website Lashou Group plans to raise up to $100 million in an initial public offering on the Nasdaq to expand its marketing efforts and delivery systems, according to a filing to the stock exchange.
Lashou, which was launched in March 2010, operates in 500 cities or towns in China. Its business model is like Groupon Inc, where users buy discounted deals from merchants who have revenue-sharing agreements with Lashou.
China's group buying sector is intensely competitive and saturated with more than a thousand group buying websites and Lashou faces an uphill battle to win a lion's share, analysts say.
"E-commerce in China is hyper competitive, much more than the U.S., and if any sector stands out as highest risk for lowest return, then it is group buying," said Michael Clendenin, managing director at Shanghai-based consultancy RedTech Advisors.
Groupon is also in the process of filing its books for its IPO to sell 30 million shares at $16 to 18 apiece. Groupon may raise its price range due to demand.
For the six months ended June 30, Lashou made a loss of $60.57 million. Lashou's sales and marketing expenditure rose from $6.2 million to $50.12 million in the first six months of 2011.
"The company is just barely two years old, burning cash on high marketing expenses and has some very strong long-term competitors in Taobao, Tencent and Renren," he added.
Gaopeng, Groupon's joint venture with Tencent Holdings in China, recently laid off staff and shut offices as part of what the company said was restructuring and a change in strategy.
Renren Inc operates social networking site Renren and Nuomi, a group buying website.
China's group buying industry was worth 2.79 billion yuan ($439 million) in transaction value in the second quarter, according to data from Beijing-based consultancy Analysys International.
Lashou had a marginal lead over China's number two player Meituan in terms of daily unique visitors.
($1 = 6.355 Chinese Yuan)
(Reporting by Melanie Lee in Shanghai; Editing by Kazunori Takada)
Global Deals Review: 2011 Q3
Global Deals Review: 2011 Q2
Global Deals Review
Related Quotes and News
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Be the first to comment on reuters.com.
Add yours using the box above.
Social Stream (What's this?)
Back to top
New York Legal
Support & Contact
Advertise With Us
Connect with Reuters
Our Flagship financial information platform incorporating Reuters Insider
An ultra-low latency infrastructure for electronic trading and data distribution
A connected approach to governance, risk and compliance
Our next generation legal research platform
Our global tax workstation
About Thomson Reuters
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.