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Posts tagged with Online Discounting

Bras and cupcakes: changing perceptions in the daily deals industry

The daily deals market has rapidly grown in the last three years, with market leader, Groupon, now present in 48 countries with an estimated 33m customers.

In late 2011, Groupon's IPO valuation was an estimated $12 billion. Despite this immense growth, the industry suffers from perception problems, with some even claiming the bubble has already burst.

However, the market is still relatively immature, and the industry faces many challenges before it establishes itself as a credible component of the marketing mix.

It was only a couple of weeks ago that Groupon was told to clean up its advertising practices by the OFT.

In particular, the industry needs to address its cases of failure head on and work with merchants to optimise the effectiveness of daily deals and prevent high-profile disasters (particularly those involving cupcakes).

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