Referdia vs Groupon – World Group Buying
by Coffee Biz | on April 12, 2012
Korean consumers use group buying to beat inflation
The recent acceleration of food price inflation globally has given even greater impetus to the growth of group buying. For example, in South Korea, the price of samgyetang (ginseng chicken soup – a traditional summer dish) jumped by around KRW2,000 (US$1.90) in restaurants during summer 2011. As a result, local consumers have flocked to group-buying sites for coupons that give discounts of between 30% and 50% in restaurants. During June 2011, one of the major South Korean group-buying sites, Coupang, offered 2,000 coupons that lowered the price of the soup by KRW6,000. They sold out in a single day.
Concept percolates down to regional centres in South Africa
The concept of group buying has also proven hugely successful in South Africa, where in addition to offering deals in the country’s largest cities, Groupon is also operating in smaller urban centres, like Nelspruit and Stellenbosch. Wayne Gosling, CEO of Groupon South Africa, says that its most popular deal, in terms of numbers, was a nationwide offer at Sandwich Baron that was selling coupons for ZAR5 (US$0.75) for a chicken mayonnaise sandwich that normally costs ZAR17. More than 16,000 of these coupons were sold. According to Gosling, most of the Groupon SA database is female (65%) and aged between 24 and 34 years, a pattern that is replicated in many other markets.
Smartphone revolution facilitates growth in emerging markets such as Kenya
Elsewhere in Africa, a near ten-fold surge in smartphone value sales during the period 2005-2010 has provided an environment for group buying to flourish in Kenya. A study conducted during May 2011 by Kenya-based research firm Consumer Insight found that 49% of young Kenyans used their mobile phones to access the internet.
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