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February 8, 2010

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HomeCity specialsHangzhou

Consumers find a friend to help drive down costs

HANGZHOU residents are learning the power of numbers when it comes to getting the best buying deals, from travel fares, through to year-end sales, gym memberships and even finding companions to share a meal with. Xu Wei reports.

Hangzhou girl Cai Li didn't expect her online recruitment for travel companions to South Korea to work. But so far she has received feedback from many interested Netizens with the same travel plans during the Chinese Lunar New Year holiday.

Cai wants to spend four days of the holiday with her parents in Seoul, capital of South Korea. But the prices travel agencies offered are very high.

"We decided not to join the tour group and we would plan a more personalized and flexible vacation itinerary and accommodation by ourselves," says Cai.

"To save costs, I resorted to the Internet to find people who have the same travel plan with us to share accommodation and transport costs. Unexpectedly, I found many budget-travelers like us."

This "collective consumption" has become a new and fashionable trend among the younger generation of Hangzhou. The mode of purchasing started with car pools and online group purchases and has spread to almost all facets of daily life, including dining, karaoke, makeup, short journeys and outdoor sports.

Compared with Cai, another Hangzhou lady, Chen Chen, is an experienced and keen white-collar participant in such group activities.

She used to be a frequent participant in numerous gatherings initiated by her friends. But now she has changed roles to become a regular organizer of weekend leisure activities.

"I try to bring travel enthusiasts together to experience the famous resorts in the city's suburbs," Chen adds.

"It is easy to make friends with people who have a common interest. Also, we can share expenses for transport, accommodation and admission to scenic spots."

Xiao Hui, a food lover who works at a Hangzhou-based IT company, says she doesn't have many friends in the city.

Sometimes she wants to buy herself a big dinner at a restaurant, but it is not an economical method of dining.

By accident she found an advertisement on hangzhou.koubei.com looking for seven dining companions for Japanese cuisine on Friday night.

"I joined immediately because I can't resist the temptation of Japanese food," she says. "And I found that I was not alone. Many Netizens with similar dining problems responded to the call."

Shrewd businessmen have recognized potential business opportunities in this form of group buying.

Elsewhere, Xiao Chen was hesitant about whether to renew the 1,800-yuan Diamond VIP card at a neighborhood swimming gym for her one-year-old son. The card offered the highest discounts possible but paying 1,800 yuan in advance was not a small sum.

The gymnasium staff suggested Chen share the card with other people so that all of them could enjoy the discounts and didn't need to pay so much.

With increasing year-end sales promotions at shopping malls, online trawling for "collective consumption" companions is becoming more common.

Statistics reported from hangzhou.koubei.com show more than 30 advertisements a day looking for participants. At weekends, the number increases to 50.

Advertisers are looking for seven to 10 companions. More than 80 percent of participants in the newly formed groups are strangers to each other.


 

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