In addition to established players such as Kid U Not, several new sites have entered the group buying market.
But rather than add to the plethora of beauty and restaurant-related deals, these sites insist they’re the first in their category.
Trade Saver, for example, is designed for tradespeople and renovators. According to managing director Tobias Diamandopoulos, the building industry was one of the last to head online.
“We’ve looked to capitalise on this first mover advantage by offering online capabilities and affiliation programs to an industry that has yet to make a presence online,” he says.
“Our growth has been fast, with an overwhelming response of well over 100 businesses looking to work with us in only a four-month period.”
Like Trade Saver, QueerDeals has only been operating in the group buying industry for a few months.
“Already we’ve been seeing an ever-increasing focus on niche markets,” says QueerDeals chief executive Sonja Bertrand.
“Younger, web-savvy consumers do not want to wade through content that is not interesting or relevant to them – whether that be news or daily deals.”
“We’re currently looking at a 100% increase in revenue month-on-month, and are seeing a similar increase in subscribers, particularly on our social media platforms.”
Sports Grab is another relatively new site, but is confident it can carve a decent slice of the market with its special offering for sports-obsessed consumers.
“Sports Grab is the first to market in the sports niche for daily deals, and we are capitalising on the online retail boom and discount shopping,” co-founder Jonathan Weinstock says.
“We have a unique competitive edge in that Australians love sport, and we are able to build a highly engaged sporting community through direct marketing channels, both online and offline, where sporting eyeballs go.”
“On the products side, we have seen a spate of recent acquisitions, which demonstrates a clear grab for market share, with niche players next on the big players’ agenda,” Weinstock warns.
“Recent acquisitions include OzSale purchasing Buyinvite, APN acquiring brandsExclusive, Deals.com.au snapping up Ouffer, and Catch of the Day gobbling up wine site Vinomofo and mum shopping site Ladybub.”
“We anticipate a grab for market share in each products category and expect further consolidation of niche sites with the larger sites like Catch of the Day, which will most likely IPO in the next three years.”
James agrees the increasing focus on product verticals is likely to continue, particularly the introduction and growth of sub-brands to foster engagement with niche audiences.
“It’s a strategic way of driving loyalty and personalisation within an existing customer base,” she says.
“The opportunity for niche players has become more challenging given what is required both financially and personnel-wise to establish and then grow a market position.”
“However, businesses that identify a real point of difference within the market and clearly articulate that, and can generate a loyal following, should certainly not be ruled out.”
According to Bertrand, social media will play an increasingly important role in the group buying scene as niche sites seek to create an online community of loyal followers.
“How well group buying sites can use social media marketing will become a make or break factor, especially for start-ups,” she says.
This article first appeared on StartupSmart.
