The Surge of Group Buying in Ireland

A few months back, I blogged about Group Buying, looking at the possibility of it working here, while also following the launch of one such website a few months later. Recently we’ve seen a surge of Group Buying websites launch in Ireland, both international players as well as home based ones.

The idea behind group buying is simple. If enough people agree to buy something, everyone gets a discount. If the threshold number of buyers is not hit, the offer is void.

A simple idea, with a massive market – one that has certainly had investers taking interest. One of the market leaders Groupon valued at $1.2 billion, while LivingSocial recently raised $25 million and are due to enter the Irish market shortly. Promozebra have already been active in the Irish market since May.

Indeed it’s the Groupon backed CityDeal service which seems to have gained the most traction, but it’s worth noting that indegnius offerings from BoardsDeals.ie, Featured.ie & Sinirgy.com are also gaining popularity. Current deals like half price massages, discounted rounds of golf, and cheap restaurant deals are sure to strike an interest with consumers who are ever seeking more value for their money.

While the idea behind group buying is sound, the success is heavily reliant on having a large enough user base to purchase the offers. Here is where I think BoardsDeals could succeed due to the size of existing Boards.ie community. Pleasing the bargain savvy community will also be a considerable challenge but positively most recent deals have sold strongly despite not having the advertising clout that CityDeal do.

A lot has changed in a few short months, and it will be interesting to see how LivingSocial handle their launch as they have neither first mover advantage or a strong existing user base compared to their competitors. I spoke recently with someone on the inside, and have been really impressed with their strategy and general vibe from their communications across other markets.

While we might see even more copycat websites crop up in the next few months, undoubtedly we’ll see some fold due to the lack of user base, ineffectiveness of their deals and lack of marketing capability.

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