About two years ago when I was researching potential business opportunities in China, I was most fired up about the idea of starting a marketing company that would offer restaurant, beauty supply, food products etc. discount coupons. My sources on the ground in China said that it wouldn’t work because the “Chinese are not used to it,” which is precisely why I was enthused about the opportunity — it’s a novel concept!

The real value would have been in collecting consumer data - via online forms, and there could even be small store fronts, where consumers could fill out questionnaires about purchasing behavior and preferences, and in exchange receive discount coupons. There is virtually no direct mail in China. Credit card penetration is extremely low. Consumer credit reporting is in its infancy. So, I think the opportunity to develop a consumer database in China is huge.

BTW, CellFire is an interesting company in America to watch - you can download coupons onto your cellphone. Also, I just checked up on my friends at Chompz, an In-N-Out delivery service for Stanford students I wrote about here, and they are still going strong, and have expanded into offering restaurant coupons.