Useful stats from Local Offer Network (LON) that runs the group-buy deal aggregator service dealradar.com… Contact research[at]localoffernetwork[dot]com to request the full report, but here’s what you need to know…
- The US group-buy market for local deals was worth $1.1bn in 2010
- The US group-buy market is set to grow 138% to $2.66B in 2011 (NB Groupon’s global revenue for 2011 is forecast to be $3-4bn)
- The US group-buy market is catered to by 322+ group-buy sites (#sites tracked by LON)
- In Q4 2010, 22,163 group-buy deals were published to local group-buy platforms in the US – in Q1 2011, this is set to rise to 39,993
- Food and drink is the largest category for Group-Buy deals (27%), followed by Beauty, Spa & Massage (19%), Fitness & Nutrition (7%), and Sports & Recreation (7%). The fastest growing categories are Home Products & Services (5%), Clothing & Accessories (4%) and Kids (2%)
- The average price for a group-buy deal in Q1 2011 is $42,45 – up 15% from $36.86 in Q1 2010.
- The average discount offered on group-buy sites is 53% – with Health, Medical & Dental category offering the largest average discounts (62%)
- The vast majority (86%) of users of group-buy platforms purchase just one deal voucher per transaction (10% buy 2, 4% buy 3+)
- The average life of a ‘live’ group-buy deal is 3.1 days, up from 1.9 days a year ago
Of course, the question on everyones’ lips is whether group-buy market growth will be sustainable – deal fatigue is already setting in (and of course dealradar is there to cater to this problem, aggregating deals into one alert); why oh why isn’t there a service that allows users to sign up for alerts to just specific venues/vendors? Personalisation is the future of this market. If ShopItToMe can do it for brands – surely dealradar, yipit or a groovy new startup can do it for specific venues/vendors?