Monday, 18 June 2012

Future Of Groupon And Its Clone Cousins

GROUPON PROFILE

  • Found by Andrew Mason
  • Launched in November 2008
  • A deal-of-the-day website that offers discounted gift certificates to subscribers on availing deals.
  • Operations in Europe, Asia, North America and South America

CLONE COUSINS PROFILE

  • More than 900 daily deals Groupon clone in existence
  • Operate on more or less similar marketing models
  • More joining the bandwagon each day
  • Niche group buying sites catering a specific clientele also evolving. 

GROUPON SO FAR

  • Currently valued at $13 billion
  • IPO launched earlier this year amid financial accounting hassles.
  • Major competitors are LivingSocial, Plum district, Jasmere.com, and Saveology.
  • Keen to expand in Asia as it is the hub of growth at present.

WHAT MAKES GROUPON IDEA POPULAR?

  • Customers can avail discounts from local merchants offering deals.
  • Popularity of web
  • Merchants earn revenues and customer avails discount making it a win-win situation.
  • Sharing of deals with friends on social media 

WHAT ARE THE PRESENT TRENDS?

  • Groupon struggling after the flop IPO show.
  • Smartphone’s also adding to the Groupon phenomena
  • In Southeast Asian markets, expansion taking place in Malaysia, Indonesia, Thailand, Singapore and Philippines.
  • In 2012, Groupon's international business accounted for 67% of revenues. 

DOES CLONES HAVE A CHANCE?

  • The market is clogged with deal-of-the-day websites. Thus, only the best will survive.
  • A lot will depend on the features offered on daily deal script.
  • Big players like LivingSocial and Groupon have the dollars but smaller players can capitalize on market knowledge.
  • User experience will also be a difference maker for Groupon clone software. 

DOUBTS REGARDING GROUPON MARKETING MODEL

  • Premium service providers usually don’t offer deals.
  • Merchants fear that it will cut profit share.
  • Some merchants hesitant to join amid fear of liquidating their brand value.
  • Explosion of orders might lead to bad servicing.

FUTURE POTENTIAL OF THE BUSINESS MODEL 

  • Total dependence on service is a crucial issue.
  • Social media companies like Facebook also facing the same issue.
  • Serious questions rise after such companies go public because they don’t have a product to offer and thus monetization becomes an issue for shareholders. 

GROWTH OF A PARALLEL MARKET

  • Business of Groupon clone script is booming amongst web services companies.
  • Entrepreneurs are getting value-for-money platforms and are thus saving money.
  • Web programming and designing firms are slaving hard to evolve the prefect Group buying clone script.

CONCLUSION

  • Analysts argue that Groupon will grow earnings at an average annual rate of 31% over the next five years.
  • Financial markets are not so confident on the marketing model.

THANKS 

FATbit Technologies 

It is the provider of best Groupon clone script and has been in the business since 2004, offers e-commerce solutions to aspiring entrepreneurs.

For more Details visit: http://www.fatbit.com/website-design-company/why-groupon-group-buying-system.html