The group buying market is about to explode, says analyst firm Telsyte.
Group buying sites will grow like topsy for the rest of the year, according to analyst firm Telsyte.
The firm today announced a new study that says “the Australian online group buying market continues to go from strength to strength. The market grew from $71.8 million in Q1 2011 to $123.9 million in Q2 2011, a quarter-on-quarter increase of 72%. The market is on track to reach or exceed $400 million by the end of 2011.”
“Australian consumers are spoilt for choice with group buying deals. The market has gone from publishing around 800 deals a month at the end of 2010, to currently around 4000 deals a month” said Sam Yip, a Senior Research Manager at Telsyte, in a press release issued today.
The firm says 2.6 million group buying vouchers were sold in the second quarter of 2011, and says it expects July saw one million sales.
“Although the health and beauty segment is still growing, it is beginning to show signs of saturation as hyper-growth is slowing down. In response to this, sites will need to expand into other sub categories of health and beauty beyond general hair, spa, and relaxation” Yip said in the release.
The release said the eight leading daily deals sites – which it names as Scoopon, Cudo, Living Social, Spreets, Groupon, OurDeal, Deals.com.au, and Ouffer – are responsible for 90% the industry’s revenues.
But that may soon change, as a number of new deals sites are coming to market.
Today, for example, a new player called 123cars.com.au arrived in the market to market, promising to take the group buying concept and apply it to motor vehicles.
“The more people who buy a particular make during each cycle, the greater the discount for everyone who jumps on board and they can watch the price fall live on the website,” said the company’s CEO Phu Dao.