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Nowadays, a brand new way of shopping is attracting increasing customers: group buying, also known as collective buying, which offers products and services at reduced prices on the condition that a minimum number of buyers would make the purchase.
Origins of group buying can be traced to China where group buying or team buying was executed to get discount prices when a large group of people were willing to buy the same items.
China group buying transaction volume hit US$ 1.74 billion (RMB 11 billion) in 2011, up 550% from the same period in 2010, according to a report by Tuan800.com <http://Tuan800.com>, the Beijing-based daily deal sites aggregator. The report also shows that 2011 was the year that the Chinese Group-buying market is winning the favor of people of different ages, especially young people. And, among the most favorable buying categories are restaurant and cinema.
What is the most attractive in group buying must be the unbelievable discounts. Facing the discounts, customers always couldn’t resist the impulse to buy the products, even though they do not need them. On the other hand, businessmen also cut down expenses on marketing. That is the reason why group buying websites spring up like mushrooms in recent months.