(Looking for all the deals on one page? Head on over to South Africa’s group buying aggregators.)
Shopping is slowly moving online, with more and more South Africans using the Internet
South Africa has always had a bustling community of people from many different cultures, and one place that these cultures meet every day in in the online world. Group deals are particularly interesting in that they give each individual a better price when all of them buy together, yet often very few or none of these people know each other.
Furthermore, South Africa’s online base is growing. By the middle of 2011, it had already almost hit 10 million Internet users (certain sources only), and the number of online purchases had skyrocketed. Generally, the population of South Africa is getting used to buying something online.
This has obviously fueled the daily group deal industry intensively. More people online and more people buying online is exactly what the social buying scene needs. In fact, this would also explain the vast amount of group buying websites launching every week. As the number has grown, so too have deal aggregators showing all the deals in the country on one website.
Good businesses need more customers
The daily deal arena has low barriers to entry, and will therefore see many entrants, after which a great deal of them will exit, leaving a few larger players to battle it out.
Many have said that the industry is not sustainable and that recent events in the USA involving the top few social buying websites indicate that the market is going to collapse, but these insights miss the point that people are always interested in specials, deals and discounts, and that businesses will always be willing to lower their prices to bring new feet through their doors.
Thus far it has been very interesting to see South Africans delighted with group buying online. Please post any comments on your thoughts on buying group deals, as well as the daily deal industry in general, below.
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Buying from the south african websites Groupon and Wicount I have come to realise that screening your partner companies is important. You can have a great deal and after sale service from the website, but if the company offering the deal doesn’t honour the deal, then it just aggrevates and disappoints buyers. Allowing a buying period is fine, but make it reasonable. One day is too short and one week is too long. If however, u allow the vouchers to be valid the moment the buyer has paid for the deal, then a longer buying period is okay. Competitions also spur participation, it would be nice to see the website appreciate and reward their buyers.
Good day.
Your advert on TV piqued my interest, hence my response. I sincerely hope that you guys don’t follow similar, boring, ad nauseum paths, that all of the other ‘deals’ companies are doing. Groupon etc, all have the same deals. Been there, done that!
Carve a unique marketing niche for yourselves. Conclude a joint venture with say, a huge meat production firm and offer meat products…fish…chicken, etc. Food is life and life sustains business! Avoid the usual income via hackneyed advertising….ie, Bed & breakfasts, holiday resorts, restaurants, persian carpets, auction sites, motor vehicles…. It’s ALL old hat and not a necessity! Why do you think that PnP, Woolies etc, have gone viral? You guys could pull the rug from under their feet by doing joint deals with manufacturers.
I have created a niche market for myself and everyone is wondering how I have done it. You must offer something that everyone HAS to have, to exist. The balance are luxuries, not essential to living.
I sinceely hope that you are capable of ‘seeing’ what I’m telling you. I have been and still am involved in marketing…..albeit, getting on in life and sometimes, searching for the words.