Monday 29 December 2014

GrabOne: Daily deal sites boom as hunt for bargains ramps up

Published 02/04/2014 | 02:30

The hunt for bargains
The hunt for bargains

SALES by daily deals sites jumped by more than a quarter last year as shoppers' appetite for a bargain showed no signs of abating.

Spending on sites such as GrabOne, CityDeal and LivingSocial jumped by 28pc to €68m in 2013, new research has found.

This means Irish consumers spent €130 every minute on deals sites during the year. The average rate of savings was 51pc, so consumers saved a collective €105m.

Three main themes dominated – food and drink, accommodation and health and beauty, which accounted for two-thirds of all purchases. The single most popular offer sold in the year was a Groupon deal for a three- metre iPhone cable, costing €2. A massive 5,100 people bought this, though total revenues generated was a modest €10,200. The most lucrative deal was a LivingSocial offer for €60 worth of Captain America's food, priced at €29. This sold 4,163 units, bringing in revenues of €120,727.

Affluent shoppers have a particular appetite for bargains, the research showed. One-in-three purchases were made using mobile devices, a high percentage, which generally indicates wealthier consumers.

Daily deals sites are a relatively recent phenomenon, led by international players like Groupon which made billions from consumers' newfound thriftyness after the boom.

But indigenous company GrabOne, which belongs to Independent News & Media, is nipping at its heels, accounting for 21pc of all Irish vouchers sold last year, with a 19pc market share. It is now the third biggest daily deals provider in the country after multinationals Groupon and LivingSocial.

The industry consolidated during the year, with the top five controlling a slightly larger market share, fewer new sites appearing and some leaving altogether.

It employed 150 people by the end of 2014, with a further 50 jobs forecast for 2014.

Irish Independent

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