In the past nine months there has been an increase in the number of group-buying websites offering vouchers for anything from haircuts to hotels to beauty therapies. These sites offer a heavily discounted, service-orientated deal, usually for 24 hours, in a variety of cities around the country. But as a marketing tactic, while successful in some instances, the group-buying model is flawed in a number of ways, primarily because it often attracts the wrong kind of customer to a business.
Browsing: group buying
By the time you finish reading this paragraph, another daily deal or group buying site will have been set up in New Zealand—or at least that’s the way it feels at the moment, with so many recent launches overwhelming our senses. We’re reminded of the days shortly after Trade Me was sold to Fairfax, when something like 70 new auction site operators clamoured into the marketplace, hoping for a similar nine-figure payday. Where are they now, we wonder?
Inboxes are groaning under the weight of the emails sent out by daily deal sites at the moment. And successful Australian group buying site Cudo and MediaWorks will soon be adding a few more. But while new collaborative buying sites seem to be a dime a dozen at the moment, the newest boy on the increasingly crowded block claims to have a big point of difference: the deals will be promoted regularly on television by a real live human.
Hot on the heels of the Yellow/Groupy deal and in line with the online acquisition strategies of other major media networks, MediaWorks has entered group buying territory, signing a joint venture agreement with Cudo Australia, Microsoft and Nine Entertainment Co. to launch Cudo in New Zealand.