Group buying stalls in Asia

Deal sites storm the exit doors

By Natalie Apostolou, 23rd January 2012

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The Asia Pacific group buying market is in consolidation mode due to intense competition, according to a new report from Daily Deal Media.

According to the new report 798 daily deal sites shut down globally in the second half of 2011.

In Asia the contraction was profound with 1,348 Asian daily deal sites swithcing to becoming deal breakers during the back end of 2011.

Daily Deal Media CEO Boyan Josic said that the high rate of mortality for the Asian group buyers was due to China. “It's simply due to the sheer numbers of startups which was also followed by a large percentage of them failing,” he told the Register.

He added that key factors to global consolidation include the increase in subscriber acquisition costs. With lots of deals sites covering the same ground, it's also hard for them to source quality deals, and investors are taking a "wait and see" approach, starving the sector of new capital.

Josic predicts that further consolidation will unfold this year, even more so than the carnage of the second half of 2011. “I also expect more startups to continue to innovate in the space, but the days of the Groupon clones that have no distinctive advantage may be coming to an end."

He added that a key trend will be the integration of daily deal sites with TV and radio editorial. ®

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Posted Tuesday 24th January 2012 15:30 GMT

Anonymous Coward

re: 'See also: Kim Schmitz'

That's Kim Schmitz, aka Kim Dotcom, aka founder of MegaUpload, soon to be Kim Schmitz formerly of a nice mansion in New Zealand.

Posted Tuesday 24th January 2012 00:27 GMT

Anonymous Coward

Set the wayback machine to

Set the wayback machine to 2000 or so.

Anytime just before letsbuyit.com collapsed will do.

Although letsbuyit.com was more about group buying than daily Groupon-style deals.

http://news.bbc.co.uk/1/hi/business/1092257.stm 29 Dec 2000

"European web retailer LetsBuyIt.com has filed for a suspension of its debt payments and suspended trading in its shares.

LetsBuyIt.com is the latest web retailer to run into financial trouble this year. The firm's business model is unique, though, allowing shoppers to "co-buy" - i.e. make joint purchases - in order to qualify for bulk discounts.

Launched in April 1999 in Sweden, the company now operates in 14 countries and 12 languages in Western Europe.

LetsBuyIt.com continues to make losses, and hopes that an extra 80m euros ($74m, £50m) will enable it to survive until it reaches profitability.

[continues]"

And the rest, obviously, is history.

As reported also right here on El Reg:

http://www.theregister.co.uk/2001/01/18/letsbuyit_com_very_very_nearly/

Other Letsbuyit Stories right here on El Reg (follow the link above to get to them):

CoShopper in talks to buy Letsbuyit.com

Letsbuyit.com bosses resign en masse

Letsbuyit shares go down the toilet

Letsbuyit.com teeters over debt abyss

Letsbuyit wants £48m to help it into the black