Group-buying seems to consistently experience conflicting states of flux - from reported positive growth, through to states of decline - so it's arguably difficult to identify the current condition of this segment in the digital industry. 

However, according to a new report by Telesyte, Groupon has taken the lead as the most used group buying site, travel has become the most popular deal category for consumers and the group buying market looks like it really is moving away from a decline. 

A new version of the Australian Online Group Buying Study suggests that Australia’s group buying market was worth $117 million in Q3, and Sam Yip, Telesyte’s senior research manager, predicts that the total yearly revenue could well exceed $530 million.

The report also identifies various emerging shifts and trends within the local marketplace. 

Groupon reigns as King

The report showed Groupon Australia to be the nations leading buying site, finishing the quarter with 26% of the market share, which is a 5% increase from the quarter before. 

Scoopon came in a close second with 24% of the market share and Living Social came in third with 14%. These were followed by Cudo with 12%, Spreets with 10% and Our Deal with 8%. 

Groupon Australia and NZ's CEO, Tobias Teuber, attributes the success of his company to consistent innovations in technology:

Groupon Australia recently launched an online dashboard for merchants which provides local businesses with valuable customer insights in real-time, helping them to measure their ROI from partnering with Groupon

Travel infuses the market

It also seems Australians can’t go past a good travel deal online, with one in three purchased deals now being travel related. This is an increase of nearly 60% from the previous quarter, moving travel from the fourth most popular group buying category to the first.

It is this growth in travel deals that Yip believes is finally bringing stablisation to the group buying market: 

Consumers have continued to purchase products and services through group buying sites and the industry is expected to sustain year-to-year growth. 

Group buying is here to stay and it is part of the natural evolution of the local eCommerce landscape. Consumers continue to purchase through group buying sites and are becoming more comfortable doing bigger transactions through these sites. 

Claire Brinkley

Published 14 November, 2012 by Claire Brinkley

Claire Brinkley is Econsultancy Australia's news and insight reporter. Follow her on Twitter, Google+ or connect with her on LinkedIn

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Comments (2)


George Grayson

Interesting. There is a really good point made in this piece about group buying being a natural step on local ecommerce, especially as shoppers and online consumers will still be looking for value above everything else off the back of the global recession.

over 5 years ago



Aussies will definitely not pass any opportunity to grab a fairly priced travl deal, for it's cheap and their opportunity to travel on the budget. The group buying sites will definitely here to stay because of this.

over 5 years ago

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