Despite all the down days, we just had on the wall street, It has actually been a pretty good year. S&P 500 is still up almost 10% for 2012. So, you can't blame economy for what is happening with the daily deal pioneer website Groupon. It's stock is down more than p80% since it went public year ago.
Is Daily Deal dead? Analysts say that It is not dead but little tired. Consumers have been running daily deal fatigue. The business was good when one of the spa deal landed in your mailbox once a day. But now, it is not unusual to have 4 or 5 deals in a day. After a while it become too much. Sometime, there are same coupons for same local spa and restaurants. Groupon and others are running out of streams to discover new business model.
On the other side, the marchants are also cooling off , after loosing money on step discounts and not able to convert those consumers as repeat customers.
But, Saving money never get old. Deals and offers never go out of fashion. What we have now is massive correction in the daily deal market. Meanwhile, to stay alive, Groupon and other daily deal companies are moving beyond the daily deal. Groupon and livingSocial both are selling products such as electronic items, Jewelry etc at discount as well as selling marketing service to small businesses to market their businesses.
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