Big deal: Operators are capitalizing on penny pinchers, but heavy competition will limit growth

IBISWorld’s industry research report on Daily Deals Sites contains five-year forecasts and data analysis that can help you identify and mitigate risks in potential new markets. Position yourself as an expert with internal stakeholders by using our comprehensive industry research to inform your reports, proposals and presentations. Our business information will save you money by helping you make better decisions, faster.


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
  • As growth slows, operators will market their services to new types of businesses

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    Industry Analysis & Industry Trends

    Daily deals sites have experienced astronomical revenue growth over the past five years due to a combination of factors. In particular, industry operators have taken advantage of lower disposable incomes and businesses trying to draw in customers. Furthermore, the growing number of mobile internet connections has promoted demand for daily deals sites. Nevertheless, as the economy continues to stabilize, revenue growth will wane and companies will shift their strategy to boosting their profit margins; therefore, over the five years to 2021, industry revenue is expected to grow at a much slower pace than it did over the previous five-year period...

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    Industry Report - Starting a New Business Chapter

    Barriers to entry in the Daily Deals Sites industry are considered low but increasing. The industry is highly competitive and fragmented; a number of firms with copycat business models are entering the industry to compete with established firms. Although industry participation has increased at an annualized 1.5% to 329 businesses, the number of daily deals sites began to decline in 2013 as the industry reached saturation.

    Industry leaders Groupon and Gilt have been able to scale and export their business models to numerous local markets internationally. Thi..

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    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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    Industry Products

    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 (typically 24 to 36 hours). 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
    Restaurant deals
    Personal care deals
    Product deals
    Other service deals
    Industry Activities
    Providing restaurant deals
    Providing service deals
    Providing product deals
    Providing other deals (e.g. travel and hotel accommodations)

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    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

  • Products & Markets
    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
  • Product deals
  • Personal care deals
  • Restaurant deals
  • Other service deals
  • Chart: Daily Deals Sites Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 55 and older
  • Consumers aged 25 to 34
  • 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
    Competitive Landscape
    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
    Major Companies
    Groupon Inc.Gilt Groupe
  • Table: Groupon Inc. - financial performance
  • Table: Gilt Groupe - financial performance

  • Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Daily Deals Sites Industry
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Number of mobile internet connections (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    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.
  • Why buy this report?

    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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