Million Daily Deals A Month Sold In Oz
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Sam Yip
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By Martin Kelly
Australian Daily Deal sites are now selling an average of one million deal vouchers each month with industry turnover for 2011 hitting $498 million, analyst Telsyte said today.
Telsyte expects the group buying market to grow an additional 30 per cent in 2012, exceeding $600M and reaching $1 billion no later than 2015.
Analyst Sam Yip says there’s been a shift in product mix away from services toward physical products (e.g. jewellery, electronics, clothing, etc) which are now 30% of the total market.
“Increased focus on physical product sales in group buying will change the face of the industry and introduce competition between deal of the day and grocery and discount online department stores,” Mr Yip predicts.
He believes 2012 will be a year of continued market growth fuelled by efforts of group buying sites on driving customer loyalty.
“In 2012 loyalty programs and targeted deals will continue to drive sales, while leading sites will enhance their mobile commerce strategies and expand their offerings” Yip says.
Mr Yip says 95% of revenue is driven by the top eight sites: Scoopon, LivingSocial, Spreets, Cudo, Groupon, OurDeal, Deals.com.au, and Ouffer.
While there were more than 80 sites in operation in 2011, Telsyte expects that the barriers to entry will increase in 2012 and some sites will fail due to lack of scale.
According to Yip, this year the local group buying sites will battle it out with the multinational players meaning bigger discounts, better quality deals, more offers, and more loyalty programs.
Filed: 6 February 2012
