There’s a saying in Chinese, 团结是力量 (unity is strength). This is the concept behind the business model of the billion dollar company GROUPON. The site is now valued at some $6 billion after rejecting a buyout from Google last December. It’s been rumored that Groupon is on the road to an IPO for some $15 billion this year. So, with some $350-500 million annual revenue, what does this company has to offer to its consumers?
In properties, it’s location, location & location! In Groupon, it’s deal, deal & (more) deal! It’s as old as time, the yearning to get better deal than most. Collective power buying seems to be the way to do it, as suggested by how popular Groupon is. Incidentally, in China, the same strategy was adopted years ago by a group of Wenzhou residents who travel all over the region to acquire & speculate properties as a group (known as 温州炒房团). They arrived in bus loads and as a group is quite a force to be reckoned with!!! Hence, the idea is definitely not brand new, however, as an online tool, it takes a new twist with a time controlled environment, as in an auction. This kind of offers are also available on another Chinese online bookstores, where deals are "time-zoned" and as the clock ticks, one is beckoned to place one's "bets". I do believe it can be addictive for some, like in a casino-environment! So, it'd be very interesting to see how Groupon develops with time & how the new trend will catch on with millions of shoppers!
It’s been reported (at last count) that Groupon has some 44 million registered users across the world; the latest additions of which are from Hong Kong, Singapore and China. Originally based in Chicago and set up by Andrew Mason (who is a mere 30 year old chap!), Groupon is a very young enterprise. It’s incorporated in 2008 and yet it has had much interest from investors and got quite a bit of seed money in its coffer. From the look of things, Groupon is pioneered for success. It might even be bigger than Facebook in a few years’ time.
So, what is the lesson one can learn from this site? Well, for one, you’d have to sign up and look deeper than the deals. I checked through their Canadian, American, Hong Kong and Singapore sites. Judging from the increasing number of deals sold, it can be projected that there would be some changes in the future in its mode of operation. Currently, it’s one deal a day. But for huge market like Shanghai and Beijing, I see more than 1 deal a day (if that’s an authentic Groupon site, that is!). Groupon.cn showcases more than 1 deal a day. So, if the fever catches on elsewhere in the world, I would foresee more than a deal each day. As it is, Groupon has been said to turn away many deals, so much so that they account for 80-90% of companies enlisted. If that’s the case, then we’ll see many sites coming in to cater to the rest of the merchants who couldn’t get onto Groupon “favor” list. Then again, Google is already making headway in this arena and has plan to launch their own version of deals. The market is huge and the sky is the limit where this is concerned. It’ll be very interesting to see how things progress on this front and for all we know, Lunch.com may even come up with version of this. As I have said, we are in for interesting times. This is certainly the most interesting business model I've come across in recent times!
In the mean time, I’d suggest anyone who read this review to go and check out what it is all about. You won’t want to miss out on a good deal or the early adopter of a new trend of our new online shopping experience, would you?! And where did you first hear it from? Lunch.com!!! ;-)
Last but not least, the Groupon craze has advanced rapidly with Android apps available for download if you're the type that can't get on the day without a deal! Check this out!!!
If you haven't bought enough over the Christmas & New Year or if you are a shopping addict, then this is the site for YOU! Otherwise, Groupon doesn't do much for someone who doesn't like shopping nor window-shopping. As a business, it is highly interesting. As a website, other than the technicality of a bidding "auction", I don't find it engaging. It does what it intends to do though & that's probably enough for its targeted audience & investors!
My mother once called me cheap. I informed her that this was impossible, because cheap people have the CHOICE about whether to spend money...I was actually, just broke. In my quest to not be broke, I've learned that besides increasing earnings, one must look at decreasing expenditures. On the flip-side, businesses need to market to new customers in a way that is cost effective for them. GroupOn has satisfied both needs in one website. … more
I’m always finding out about sales the day after they end. Typically, I’ll be walking into a restaurant on a weeknight only to find out that yesterday, the same meal was being offered at half the price. Or, even more often, I’ll be scrolling through all the spam in my inbox when I finally have a second on a Thursday, only to discover that the 40% off coupon from Borders was only for Tuesday and Wednesday and the $200 off coupon from Travelocity expired Wednesday at … more
Groupon is a deal-of-the-day website that is localized to major markets in the United States. The first market for Groupon was Chicago, followed soon thereafter by Boston and New York City. As of November 2009, Groupon serves nearly 30 markets. Groupon debuted in November 2008 as part of The Point, a platform for collective action.
Compete.com cites Groupon as one of the top 1,400 sites on the Internet, with about one-third of its traffic coming from Facebook ads. According to quantcast.com, Groupon has 321,000 unique visitors each month and is one of the top 6,000 sites on the Internet. On July 1, 2009, Groupon rolled out a new website design.
The idea for Groupon was created by, now CEO, Andrew Mason. The idea subsequently gained the attention of his former employer, Eric Lefkofsky, who provided $1 million in "seed money" to develop the idea. The site launched in November 2008
The company offers one "Groupon" per day in each of the markets it serves. The Groupon works as an assurance contract using ThePoint's platform: if a certain number of people sign up for the offer, then the deal becomes available to all; if the predetermined minimum is not met, no one gets the deal that day. This reduces risk for retailers, who can treat the coupons as quantity discounts as well as sales promotion tools. Groupon makes money by getting a cut of the deal from the retailers (typically 50%).
Groupon focuses on unusual, special or niche things in each ...