Thursday, September 2, 2010

crowdsourced group buying: philippine potential?

Online group buying has become a popular trend in the United States. Websites offer group deals - discounts, gift certificates, etc - that are activated once a minimum number avail.

Users are alerted on daily deals with promotions for restaurants, spas, stores, home services, etc. Each announcement includes the original price, discounted price and the minimum number of people that need to avail for the discount to be activated. Crowdsourced group buying.

Groupon is the most popular group buying site. Founded in 2008, it now operates in 150 cities worldwide. Its sizable user base guarantees a good chance for participation and its website claims that it has saved users almost $450 million.

I subscribed to their updates while in New York recently and got offers for discounted gym classes, maid service and restaurant gift certificates. Would probably have tried something if I'd been around long enough!

Would the same concept work here?
Have been wondering if this would work in the Philippines. Breaking it down, the operation would require
  • Merchant partners
  • a digital Distribution Platform
  • Critical Mass - interest and participation, and an 
  • Online Payment Facilities
And looking at how well we would do in each area —


The verdict?
Maybe not yet. While the right marketing could drive enough interest and participation in GMA, this might not be enough to constitute critical mass.

Who could capitalize on the trend
As internet penetration grows though, you never know! And maybe the offer needs to be put forth before demand grows.
  • Coupon companies, e.g. Enjoy 
  • Credit card companies who want to build the online shopping habit. Hmmmm!
SHARE:

12 comments

冰雨 said...

Buyanihan.com is the Philippines version of Groupon, launched back in Aug 2010, the company has featured multiple deals until now, ranging from tour, hotel, buffet, to party and spa.

Just check out the website to find out more, or join their fans page at Facebook/BUYanihan

Cheers!

bea said...

awesome! thanks for the update. planning to do a follow up post on the local competitive group buying / couponing sites and will definitely include buyanihan.com

jayr said...

There is now a new Groupon like website www.cashcashpinoy.com I think they r the only one giving a new deal every day.

melissa said...

Hi Bea!

I chanced upon this post (good blog btw!) and thought of giving you some updates on several points:

* Merchant partners - i think merchants are open to the idea already. As JayR mentioned, website like CashCashPinoy in partnership with Enjoy, offers different deals from restos, bars, event tickets, luxury and specialized services everyday. :)
* a digital Distribution Platform - CashCashPinoy has this advantage with the help of NetBooster Asia. ;)
* Critical Mass - Filipinos are ready for e-commerce! Take for example the Spiral deal from CashCashPinoy where a total of 1664 vouchers were sold. :)
* Online Payment Facilities - So far, CashCashPinoy has the widest range of payment solutions: credit card, paypal, Gcash and over the counter payments on banks. :)

Hope this helps on your follow up post and if you need more info, just let me know. :)

Cheers,
M

bea said...

Thanks for the feedback! Have been monitoring both Buyanihan and Cash Cash... still need to try both services out! But it is interesting to see simultaneous developments like this locally.

Elaine said...

Groupon, the world's largest group buying site is now in the Philippines via merger with Beeconomic.

To register go to: www.groupon.com

To join the Facebook fan page: http://www.facebook.com/groupon.philippines?v=app_2392950137#!/groupon.philippines

hedkandi said...

Hi Bea,

Interesting read. Just a follow up though although banks could be another online payment solution it is still quite cumbersome since people have to line up in queue. Why don't you check out www.cashsense.com and see their online payment option for Shop online - Pay Cash

Rudie Ryan said...

for me twangoo.com/manila rocks. I love their deals. Especially their deals for this valentines. 66% off on Salon de San Lorenzo for their Hair & Make-up with Mani and Pedi.. Perfect gift for my girlfriend...

bea said...

Hi Elaine! Thanks for the suggestion! I must admit that I get confused by the seemingly interchangeable branding of Groupon & Beeconomic! Sometimes it confuses me about who I am dealing with...

bea said...

Hi Kandi! Thanks for the input. I will keep Cashsense in mind the next time I purchase online!

bea said...

Hi Ryan! Thanks for the tip. I think Twangoo has the best design of all the couponing sites.

Kevin Fesalbon said...
This comment has been removed by a blog administrator.
© be your digital best / digital marketing philippines

This site uses cookies from Google to deliver its services - Click here for information.

Blogger Template Created by pipdig