Making Money Guide

Andrew Mason has been visiting Beijing and Groupon HQ has finally realized there are some problems in China.

On the Forbes website, Rebecca Fannin reports:

CEO Andrew Mason just arrived in China and hasn’t wasted time shaking things up. Four expatriate executives at Groupon who were recruited from rival site Ftuan just a few months ago will be leaving Groupon China.

Update: Groupon has contacted us and denies the original Forbes report. They say that no expatriate executives have been fired or left Groupon China recently.

This seems to be a belated response to the very obvious problems at Groupon China that seasoned observers have been noting since the group buy website first opened up shop in Beijing and Shanghai:

Groupon China was started and has been managed by a bunch of trendy-looking but ineffectual foreigners who can’t speak Chinese and are completely clueless about China.

Firing four unnamed foreigners is not evidence that anything has changed.

Meanwhile, Bloomberg has this report (which I’d wager a PR company helped put together) talking up Groupon’s Chinese partner Tencent:

“Tencent’s scale and user base gives Groupon an advantage, and China’s group-buying market is still at an early stage and has a lot of upside,” said April Su, an analyst at iResearch in Beijing.…

“We think we’ve found an excellent partner in Tencent and we’ve been very pleased with the progress we’ve made,” Mason told reporters in Beijing today, before leaving Ouyang to field queries on Gaopeng…

Gaopeng is seeking an edge in China with “world-class brands,” like Apple Inc., Ouyang said today.

“Our strategy is very strict selection of the merchant deals,” Ouyang said. “It’s not only about discount service but it’s also about being a city guide, a lifestyle.”

A few problems:

1. Tencent will end up shafting Groupon

If the Groupon model works in China, Tencent has nothing to gain by partnering with Groupon. Tencent has its own Groupon style offerings, and there is no need to make Groupon work for them to profit by the model.

2. Apple and “lifestyle”: Ha ha ha ha ha ha ha

This is too rich:

Gaopeng is seeking an edge in China with “world-class brands,” like Apple Inc., Ouyang said today.

“Our strategy is very strict selection of the merchant deals,” Ouyang said. “It’s not only about discount service but it’s also about being a city guide, a lifestyle.”

So, Apple is going to sell discounted iPads in China?

Yeah right, why would Apple do this when there are already Chinese people willing to sell their kidneys to get an iPad, or get into fistfights at the Apple store just to get hold of one.

Apple and Groupon China? Simply ridiculous. Even more ridiculous is the “city guide / lifestyle” nonsense.

I first worked on city guide / lifestyle print magazines in the late 1990s in China:

There is a small amount of money to be made in city guides and lifestyle guide products in big Chinese cities. There is quite a bit more money to be made in Internet and media products that help position brands as desirable for the new rich and emerging middle classes (e.g. Cosmopolitan China magazine and Vogue China , possibly the P1 social network and the Financial Times‘ FT Rui magazine).

There is also money to be made and a huge user demand for Dianping, which is like the Yelp of China that offers real, honest user reviews of restaurants.

But, based on my personal experience since 1997, every foreign-funded company I have ever encountered in China talking about making money from local vendors based on a “lifestyle” proposition has about a year or so before bankrupting itself or being run out of town.

3. iResearch

A final note: I don’t know if Groupon is paying iResearch, but iResearch has a reputation in China for doing “research” for companies who pay them. Somehow, the companies always end up looking very good in their research reports.

It’s all pre-IPO spin. Groupon China is simply a way to bleed cash.

Update Apologies to anyone offended by the original title. It’s a reference to my previous post about Groupon. But since nobody got it, the headline has been changed.

If you only spend one or two nights in Houston for an unexpected business trip, where should you go? What should you see? And perhaps most important: Where should you drink?

This is part of a larger piece I'm doing for Outlaw on nightlife in American cities that are not New York or L.A. (because America has precisely four other top-notch cities that get less press, including Houston).

Beginning: My Friday afternoon started off by meeting up with Mary Rambin, a Houston-based lifestyle and fashion blogger without equal.

She met me at Hotel ZaZa, the tastefully eccentric hotel I'm staying at this weekend in Houston's museum district. Cool features include a fairly massive marble desk, plush robe (I felt like a hungover Gordon Gekko when I checked my e-mail this morning), free Wi-Fi, and a Cadillac Escalade "house car" that will take you anywhere within a 5 mile radius of the hotel, and will blast Hot 95.7 if you ask politely.

We checked out Cru, a laid-back wine bar with good pizza and a wide range of wine "flights" to choose from. I downed all three offerings instantly like a barbarian in a Capital One commercial, which is a testament to how smooth my pinot noir flight was. (Ask for Flight #12 when you go there.)

She also took me to the original Goode Company for barbeque, which lived up to the hype. I'll be back before I fly out this evening -- partially because I know the aroma of a bbq sandwich from Goode Co. will make every other passenger jealous, and it could become a crucial in-flight bargaining chip. Leverage, my boy. "Say, do you mind if I borrow those noise-canceling headphones you have on? You can have what's left of this."

Middle: Shortly before parting ways with my gracious Southern day-time host, disaster struck: I learned that my night-time guide -- another Texas native -- had to cancel on account of an unexpected "pre-Father's Day event" aboard her dad's "yacht" in another city. Umm, alright. (Original observation: People in Texas have money.)

This put me in an awkward spot: I was here to crack Houston's nightlife code, and without a Texan by my side, I'd wind up downing Bud Light at an Applebee's. 

Fortune smiled upon me, though, when I remembered that I had another friend living in Houston. I messaged her on Facebook and she was thrilled to help me out on my mission.

End: We went on a wild tour of Houston's drinking hot spots, purposefully avoiding "douchebag clubs." When you put it that way, I told her, I guess I don't want to check out the night clubs! (I get my fill of Ed Hardy shirts, testosterone, Jager shots, and ice-cold female rejection in my local Vegas night clubs anyway.)

The highlights from last night in Houston included an amazing wine bar called 13 Celsius, which keeps and serves all of its wines at precisely 13 degrees Celsius (supposedly the correct temperature; I'll be forwarding this article to my mom when it posts, subject line FYI).

The vibe was cool/young professional, without being pretentious. People were open and mingled freely with strangers. The owner told me the bar has been open for five years, and has thrived solely on word of mouth from locals. I believe it.

Anvil was after that, rated by various magazines as one of the best cocktail bars in America, a reputation which it deserves.

The bartender was talkative and friendly, giving me a verbal Wikipedia entry of the bar's history and unexpected successes. Most important, he was passionate about the art of making drinks -- a growing rarity among today's soda-gun and vodka slingers. (Anvil does not serve vodka.)

The bar is doing a "Summer of the South" selection of Southern inspired cocktails. As a menu explains, "Today's modern cocktail resurgence tends to emphasize urban speakeasies and Yankee cocktails. Secession anyone? Sure, we admire our Northern colleagues, but it's about time other drinking cultures get a little respect."

I'll drink to that -- always neat to see a bar with a mission statement.

The night ended with a brief jaunt through Etro Lounge next door, which was described to me as "like walking through an old video game." It definitely feels like a club from the 1980s, but in a good way. Think Adventureland.

Customers were ready to party, on the younger side, but thankfully a couple of old dudes filtered in. Their presence made me feel more at home. 

Shortly thereafter everything closed for the night (I was surprised to learn that bars close at 2 a.m. in Houston).

Today my host plans to show me some legitimately cultural day-time things here in the museum district, so more to come...

-- provided by Outlaw

P.S. Is there room in your wallet for a shiny new credit card? Of course there is. Check out Outlaw's newest lucrative card deals from American Express, Discover, HSBC, and other top issuers. No annual fee, and awesome rewards -- click here to check them out.

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Silly samplings from this week's science news. Compiled by Bethany Halford and Lauren Wolf. Got a good story about late Chemistry Nobel Laureate William.

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2012 Contenders Respond to Obama&#39;s Afghanistan Speech - FoxNews.com

Republican presidential contenders issued responses to President Obama&#39;s televised address to the nation Thursday, during which he committed to withdrawing 10000 U. S..

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According to a leaked marketing survey, three images are in contention to be the box art for Square Enix's recently revealed Hitman: Absolution.

Apparently, these pieces were created before the official subtitle was decided, because they all say  "Subtitle" instead of "Absolution." I should also point out that all of the covers have the PEGI rating (basically the European ESRB), so we may never see these designs on our shores.

I've posted my favorite of the images below, but you check out the other two over at Kotaku.

(Source: Kotaku)

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According to a leaked marketing survey, three images are in contention to be the box art for Square Enix's recently revealed Hitman: Absolution.

Apparently, these pieces were created before the official subtitle was decided, because they all say  "Subtitle" instead of "Absolution." I should also point out that all of the covers have the PEGI rating (basically the European ESRB), so we may never see these designs on our shores.

I've posted my favorite of the images below, but you check out the other two over at Kotaku.

(Source: Kotaku)

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Joseph Wershba, TV <b>News</b> Pioneer, Dies at Age 90 | PopEater.com

TV news pioneer Joseph Wershba, an Emmy-winning CBS News producer and reporter, whose work helped to bring the McCarthy witch hunts to an end, has.

Apple pushing for smaller SIM standard | iLounge <b>News</b>

iLounge news discussing the Apple pushing for smaller SIM standard. Find more Apple news from leading independent iPod, iPhone, and iPad site.

<b>News</b> In Brief: Humans - Science <b>News</b>

New World's oldest dog may have been dinner, plus worrisome PTSD and artful dodging in this week's news.

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Republicans in California are on life support. Will they pull the plug themselves?

Last year, they lost all eight statewide offices for the second time in the last three general elections. While the GOP was cleaning up elsewhere in the country, they also lost a Republican Assembly seat, and failed to take out any Democrats in Congress or the state Senate. U.S. Sen. Barbara Boxer, always a top GOP target, beat her well-financed Republican adversary by 10 points -- the eighth straight loss for the Republicans in California U.S. Senate races.

How much lower can they go? Based on the 2010 census data, California Republicans probably have not hit bottom yet -- and if they're not careful, could go the way of the Whigs. And Democrats are not their biggest enemy. Demographics are.

Between 2000 and 2010, 29 -- fully half -- of California's 58 counties saw an eye-popping increase in their Latino populations of between 40.1 percent and 100 percent. Another 16 gained between 30.1 and 40 percent, and Latinos in seven counties increased between 20.1-30 percent. Only one county, the smallest of all, tiny Alpine with only a little more than 1,000 residents, actually lost Latinos over the last decade.

Of the 29 counties with the largest growth in Latinos, only three of them touch the coast, with the others being in inland California -- generally considered to be the most Republican-friendly part of the state. A majority of all Californians under the age of 18 -- future voters -- are now Latino. The California Department of Finance projects that as early as 2016 Latinos will replace Caucasians as the largest ethnic group. By 2040, Latinos are projected to constitute an absolute majority -- 52 percent -- of Californians.

In addition, while Latinos grew by 28 percent since 2000, Asian Americans increased by even more, 31 percent. At 38 and 13 percent, respectively, of California's population, Latinos and Asians combined are now for the first time a majority of the state. And blacks add another 6.2 percent, for a total minority population of nearly 60 percent.

Overlay this demographic data with the recent voting history and patterns of minority voters in the state, and you can get a sense of the dire dimensions of the Republicans' problems. In all presidential and gubernatorial elections in the Golden State since 1994, the average share of the Latino vote garnered by the Republican nominees was 25.3 percent.

In those same elections since '94, an average of only 37.7 percent of Asian American voters opted for the GOP candidate (and only Arnold Schwarzenegger broke the pattern, receiving a majority of Asian voters in his 2006 reelection). And, of course, forget blacks, who regularly vote 75-90 percent for the Democrat in statewide races (94 percent for Barack Obama in 2008).

In 1994, whites constituted 82 percent of the electorate, with Latinos at only 8 percent. In the 2006 general election, Caucasians comprised 75 percent and Latinos 12 percent. In 2010, whites were down to 62 percent, with Latinos hitting a historic high of 22 percent. Isn't the trend obvious to Republicans?

Meanwhile, back at the all-white Republican ranch, of the 19 California Republicans in Congress, 15 in the 40-member Senate and 28 in the 80-member Assembly, there are zero Latinos, zero Asian Americans and zero blacks. Historically speaking, this state of affairs not only represents backward movement, it also contains a number of ironies.

The first Hispanic ever to represent a state in Congress actually was a Republican from California, Romualdo Pacheco, elected in 1876. He also happened to be the first Hispanic ever to chair a standing congressional committee -- the Committee on Private Land Claims. But California Republicans haven't elected a Latino to Congress since Pacheco -- a drought of more than 130 years.

The first African American ever elected to the California Legislature was a Republican, Frederick Roberts of Los Angeles, who served from 1918-1933 and authored early civil rights legislation. There hasn't been a black Republican in the Legislature since.

In 1996, the first Republican Latino was elected to the Assembly in modern times. In 1998, three more gained office. The four of them started a first-ever Hispanic Republican Legislative Caucus. Then, from 2004-08, there was only one Republican Latino in the Assembly. Now there are none -- and obviously no caucus, either. The only Republican Latino ever to serve in the state Senate, Abel Maldonado, left that body in 2009 when Gov. Schwarzenegger appointed him lieutenant governor -- then lost in his attempt to be elected to the office last November.

As recently as 2008, there were three Republican Asian Americans serving in the Legislature. Now, there are none.

Another shocking statistic, if you're a Republican: of California's 58 counties, not one has a Republican majority of registered voters -- not even Orange County, historically regarded as one of the most Republican big counties in America (now just 43 percent Republican), or the conservative, rural "cow counties" just south of the Oregon border.

Although the Legislature engaged in a bipartisan conspiracy in 2001 to re-draw congressional and legislative district boundaries to protect the then-existing partisan control, Republicans also no longer have majorities of registered voters in any of the 53 congressional districts, the 40 Senate seats or 80 Assembly seats.

So what should California Republicans do to save themselves from themselves? I don't have a clue, but I do have some advice about what not to do. Newly elected Assemblyman Tim Donnelly, a Tea Party-affiliated nitwit (and white guy, of course), recently brought to California for a public event the state senator who sponsored Arizona's infamous SB 1070, and has been introducing anti-immigrant measure after measure.

Some conservative groups in the state are gearing up to put an Arizona-type anti-immigrant measure on the ballot in 2012. Shades of Proposition 187 in 1994, which turned Latinos against Republicans for probably two or three generations. Fully 78 percent of California Latino voters as of last November's election registered to vote since 1994.

And don't take just my view of it. In a Wall Street Journal piece on May 2, two respected California GOP strategists issued their own Cassandra-type warnings to their party. Hector Barajas (yes, I guess there must be at least one California Republican Latino!), who led Latino outreach for gubernatorial candidate Meg Whitman's campaign, warned his fellow party members that they risked "political suicide" if they didn't consider Latinos in crafting their campaigns. "Latinos don't like us very much," he averred to the Journal. Marty Wilson, who ran Carly Fiorina's U.S. Senate race, also cautioned Republicans to avoid anti-immigration rhetoric meant to stir up the party's nativist base.

Republicans, already down to an all-time historic low of only 30.9 percent of registered voters in the Golden State, are courting long-term political irrelevance and disaster if they fail to grasp the continuing emergence of the state's minority voting power.

If they don't want to or can't figure out how, it could be hasta la vista, baby.

Garry South is a longtime Democratic strategist and commentator.

The website Advertising Age released a cool new infographic comparing various social media – namely Facebook, MySpace, LinkedIn, and Twitter.  There are some interesting facts revealed here.  For instance the Social Media space is lead by the 35-54 age group, the leading country for Facebook is the US, but the second is Indonesia, the leading country for LinkedIn is also the US, but it’s followed by India, and females outpace males as Twitter users.

While some of this strikes me as common sense (like Twitter being dominated by the 35-54 age group), some of it amazes me (like there are significantly more female users and visitors to Twitter).  For anyone who runs a web site this is pretty good information to have.  It can provide a lot of aim to your marketing and SEO efforts.  For those who don’t run a site it’s still a bit of pretty interesting information to parse over.

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