The Group Buying Phenomenon
Source: hothardware.com
5 April 2011: The phenomenon of individuals banding together to increase purchase power began with the successes of Groupon and Living Social. With just the touch of a digital screen, anyone could buy the right to pay $20 for $40 worth of food at a featured restaurant. Group buying is gaining in momentum and retailers are assessing the impact on the future of shopping.
TechCrunch reports that group buying in the U.S. is estimated to grow an amazing 138% to $2.7 billion in 2011. In a study conducted by Local Offer Networks, the first three months of 2011 are projected to unleash deal volumes of more than half of what was offered in all of 2010. As group buying gains more followers, consumers are firmly in the drivers seat of which food or retail outlet, or service they will try next.
Categories seeing the most deals are:
Food and Drink (27%)
Beauty, Spa & Massage (19%)
Fitness & nutrition (7%)
Sports & Recreation (7%)
Home Products & Services (5%)
Most popular cities for deals are:
Chicago (where Groupon is based)
New York City
San Francisco
Boston
LA
