{"id":80899,"date":"2017-07-04T14:18:36","date_gmt":"2017-07-04T03:18:36","guid":{"rendered":"http:\/\/smartoffice.com.au\/oz-e-group-buying-explodes-400m-value\/"},"modified":"2017-07-04T14:18:36","modified_gmt":"2017-07-04T03:18:36","slug":"oz-e-group-buying-explodes-400m-value","status":"publish","type":"post","link":"https:\/\/staging.strixdevelopment.net\/smartoffice\/2017\/07\/04\/oz-e-group-buying-explodes-400m-value\/","title":{"rendered":"OZ E-Group Buying Explodes: $400M Value"},"content":{"rendered":"

They flood inboxes with daily deals. But it’s not all for nothing as latest figures reveal.<\/p>\n\n\n\n
<\/a>
Click to enlarge<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The newest form of e-tailing is worth $73m in Q1 alone, according to Telysyte. <\/p>\n

Last year the sector made $63m in this market – on average $5.25m per month, now it’s averaging $24.3m monthly – a fourfold hike.  It also represents a jaw droping 62% jump quarter on quarter. In Q4 2010 it was worth $45m.<\/p>\n

Revenues generated in Q1 alone exceeded the full year 2010 industry revenues of $63 Million.<\/p>\n

This means the sector which includes players like Scoopon, Spreets, Cudo and Jump On It is on track for values to exceed $400M this year if growth continues unabated, Telsyte predicts. These ‘Big 4’ generate 80% of the revenue between them. <\/p>\n

And word of mouth is also helping to seal the deal and some companies compensate subscribers if they spread the word giving them free deals if get a certain number of friends to sign up. <\/p>\n

“Group buying deals have become the new “water-cooler” conversation starters and the phenomenon is quickly becoming a mainstream way to shop online,” says Telsyte. <\/p>\n

 <\/div>\n

Almost 6,000 deals online group buying sites so far this year. And this comes as no surprise. <\/p>\n

Some of the sites like Stardeals, run by US operator Groupon, e-mails 2two separate deals each day while other players like Living Social Deals send a daily mail flogging multiple offers as competition between players intensifies.<\/p>\n

Jigocity, Deals and Catch of the Day are some of the other players on the scene. Aggregrate sites like allthedeals.com.au also list every offer from every group dealer.    <\/p>\n

Just last week electronics retailer Harvey Norman broke ranks and jumped on the e-tail bargain bandwagon with its site, Best Buys, selling everything from Revlon cosmetics to garden accessories. <\/p>\n

 “Consumers have been spoilt for choice with the number of deals available to them on any given day, saysTelsyte Research Manager, Sam Yip.<\/p>\n

“Group buying sites have extended their reach by increasing the number of side deals, launching into new locations, and offering compelling national deals in addition to local deals” <\/p>\n

Consumers have started to spend more money in the sector. In the first quarter, deals above $700 became popular and broke records for revenue generated on a single deal.<\/p>\n

Health and beauty remains a strong category, but pricier travel and accommodation deals are also starting to emerge, “proving group buying can be a viable channel for higher priced products and services” he added. <\/p>\n

Cudo sold 2000 vouchers for a Thailand holiday deal generating $1.6m and OurDeal offered a Daydream Island deal for $500, ringing up a cool $1.4m for the operator. <\/p>\n

 <\/div>\n

Telsyte estimates that consumers have saved over $200m in the first quarter of this year by purchasing group buying vouchers.<\/p>\n","protected":false},"excerpt":{"rendered":"

They flood inboxes with daily deals. 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