Feeds

Australian group buying soars

From invisible to fly-speck in only 12 months

Build a business case: developing custom apps

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. ®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.