Feeds

Australian group buying soars

From invisible to fly-speck in only 12 months

Remote control for virtualized desktops

The Australian group buying market is set to grow by 284 per cent in 2011, generating A$242m and capturing 0.1 per cent of Australia’s A$200bn retail market.

The forecast from research firm Telsyte says group-buying is the fastest growing in the online retail. The sector is in nascent development, with players launching last year and gaining traction in the last quarter.

The top four sites – Spreets (which was recently acquired for $40m by Yahoo!7), Scoopon, Jump On It, and Cudo – represent 79 per cent of the industry’s revenues, estimated at $63m in 2010. There are around 20 group buying sites operating in Australia with global leader Groupon landing locally this week operating as stardeals.com.au.

The sector employees over 350 people and is expected to more than double its headcount in 2011.

“The success of online group buying in Australia shows that Australians are becoming increasingly social in their shopping activities. Consumers are moving from a simplistic click-to-buy shopping cart experience to a more dynamic social way of buying online” Telsyte senior research manager Sam Yip says.

Telsyte claims that new growth will come from "hyper-local" offerings and players that target specific market areas such as health or food. Further growth will also stem from the development of mobile group buying applications.

The research also claims that group buying plays from the likes of Google and Facebook will further shake up the market.

Associated industries are also poised to leverage the growth, with agencies horning in for their cut by representing merchants in deal negations and analysis, while white-label software platforms providers will gain from local media publishers entering the group buying industry through partnership or acquisitions. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Big Content outs piracy hotbeds: São Paulo, Beijing ... TORONTO?
MPAA calls Canadians a bunch of bootlegging movie thieves
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.
Mitigating web security risk with SSL certificates
Web-based systems are essential tools for running business processes and delivering services to customers.