One day only: Operators are capitalizing on penny pinchers, but heavy competition will limit growth

Born from the depths of the recession, the Daily Deals Sites industry has experienced steady growth in the five years to 2017. Increases in consumer spending, coupled with rising internet connectivity, facilitated a rise in daily deal sites early in the five-year period. However, low barriers to entry, high marketing costs and steep competition have prevented most companies from gaining a foothold in the industry. Over the five years to 2022, industry revenue growth is expected to slow considerably from the previous five years, as per capita disposable income continues to rise and consumer spending normalizes...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Demand will taper off as spending normalizes, but mobile connections will sustain growth
  • The industry’s low barriers to entry enticed many new players to enter the industry
  • Operators are likely to spend more money on the development of mobile applications
  • Industry Report - Industry Analysis Chapter

    The Daily Deals Sites industry has experienced rapid growth in the five years to 2017. The industry, appealing to consumers aimed to save, is expected to generate $4.6 billion in 2017, representing annualized growth of 20.0% over the five-year period. However, the industry has experienced significant growing pains. With a large number of players flooding in and significant marketing costs, the industry continues to experience dismal profit margins, resulting in high turnover. Exasperated by competition from local business sites, such as Yelp, revenue is anticipated to rise only 4.9% over 2017.The business model and growthBusinesses use daily deals websites to build brand awareness and generate sales through an alternative marketing method. Dai...purchase to read more.

    Additional Insights for the Daily Deals Sites Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Daily Deals Sites Industry are

  • Effective product promotion
  • Ensuring pricing policy is appropriate
  • Ability to provide goods and services in diverse locations
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and National unemployment rate in the Daily Deals Sites industry impact industry performance..

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    What's in this report

    What is the Daily Deals Sites Industry?

    This industry includes operators that generate the majority of their revenue through discounts on local goods and services for a limited time frame. Goods sold by the website are given as vouchers that consumers can redeem at local merchants for the physical good or service. Industry revenue comprises the price paid by the customer for the voucher or the coupon after paying an agreed-upon percentage of the purchase price to the featured business.

    Industry Products
  • Travel deals
  • Local event deals
  • Consumer product deals
  • Industry Activities
  • Providing restaurant deals
  • Providing service deals
  • Providing product deals
  • Providing other deals (e.g. travel and hotel accommodations)
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • National unemployment rate
  • Number of mobile internet connections
  • Time spent on leisure and sports

  • Current Performance
  • The business model and growth
  • Low barriers to entry limit profit margins
  • Promotions and pull
  • Chart: Revenue Growth

  • Industry Outlook
  • Growth slows
  • Consolidation and confidentiality
  • Moving to mobile
  • Table: Daily Deals Sites Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Daily Deals Sites Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Retail Trade
  • Accommodation and Food Services
  • Other Services (except Public Administration)
  • Consumers

  • Key Selling Industries
  • Accommodation and Food Services
  • Other Services (except Public Administration)
  • Retail Trade

  • Products & Services
  • Travel deals
  • Local event deals
  • Consumer product deals
  • Chart: Daily Deals Sites Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 25 to 34
  • Consumers aged 55 and older
  • Consumers aged 45 to 54
  • Consumers aged 35 to 44
  • Consumers aged 24 and under
  • Chart: Major Market Segmentation for the Daily Deals Sites Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Marketing
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Daily Deals Sites

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Daily Deals Sites Industry

  • Industry Globalization
    Groupon Inc., Gilt Groupe,
  • Table: Groupon Inc. - financial performance
  • Table: Gilt Groupe - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Daily Deals Sites Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Daily Deals Sites Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Number of mobile internet connections (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Brick And Mortar
  • Stores that have a physical presence and location, as opposed to online retailers.
  • Mobile Application
  • A program (app) that can be downloaded onto a mobile device to connect the user with a specific service (usually the app's developing company).
  • Smartphone
  • A mobile phone that offers advanced PC-like capabilities.
  • What Our Customers Say

    Why buy this report?

    The Daily Deals Sites industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Daily Deals Sites:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Daily Deals Sites market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Daily Deals Sites, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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