(Looking for all the deals on one page? Head on over to South Africa’s group buying aggregators.)
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.
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.