After the phenomenal success of GroupOn, new group buying (group purchasing) web sites had started to appear virtually every day. It is extremely hot trend and even in Australia we have many of them. One day I asked myself, who is the leader of this market? Who close deals more often, attract more consumers and get highest volume of the transaction? So when I got some spare time, I conducted a small research to answer this questions and find out more insights.
Initial search identified that there are at least ten web sites in Australia that work on the similar with GroupOn model (in fact one of them was considered by GroupOn itself so similar that was suited for IP rights violation in US). The list of these sites:
- Jump On It http://www.jumponit.com/
- Ouffer http://www.ouffer.com
- Scoopon http://www.scoopon.com.au/
- Spreet http://spreets.com.au/
- Zoupon http://zoupon.com.au/
- Zizzle http://zizzle.com.au
- Cudo http://cudo.com.au/
- Our Deal http://ourdeal.com.au
- DealMe! http://www.dealme.com.au/
- Crowdmass http://www.crowdmass.com.au/
Unfortunately only five of them provides detailed enough quantitative information that allows me to make some analysis. Web sites #6-10 either do not provide any information about past deals, or list only limited chunk of it (like without references to the number of purchases). Therefore only first five web sites was analysed. Also, due to an absence of information in the good for analysis format (I mean that I had to manually type all data) I made a decision to limit research by markets of Melbourne and Sydney. Analysed period is from 1st Sep to 25th Oct 2010.
That was a foreword, now what I have found.
In total, there were 183 deals that generated 123,736 purchases and combined transactions volume of $4,864,052. The distribution of this pie among the players is shown on the charts below:
In terms of transactions volume, market leader is Spreets, which holds 35% ($1,717,153), next is Scoopon (28%, $1,339,432) very tightly followed by JumpOnIt (27%, $1,316,516).
However in the total number of purchases, Scoopon is the first (41503 purchases), JumpOnIt and Spreets and virtually share 2nd and 3rd places (29751 and 29216 purchases).
Average purchase amount was $39 with 72% weighted average discount from normal price.
The composition of types of businesses that were promoted via group buying web sites:
Interested to know more? Full research will be issued soon, register your interest in the form below. I appreciate all feedback, your are welcome to post it directly in this post.
Update: the report part is published, check follow-up post