Dealing with it: Increasing competition and consolidation slows industry revenue growth

Operators in the Daily Deals Sites industry have solidified their position in the ecommerce market over the past five years. Daily deals sites build up their subscriber base by promoting specials and limited-time deals on a daily basis. Most industry operators effectively act as third-party intermediaries between suppliers and customers. Therefore, most industry firms do not purchase the products and services offered on their websites.The industry grew rapidly during its early years, which encouraged many new players to enter the industry. Revenue growth has slowed over the past five years as external competition from online retailers has more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Industry operators are being forced to pursue innovation to increase revenue
  • Industry consolidation and shifts towards automation have assisted with industry profit margins
  • Profitability is projected to decline marginally over the next five years, affected by competition
  • Industry Report - Industry SWOT Analysis Chapter

    The Daily Deals Sites industry is in the mature stage of its economic life cycle. Industry value added (IVA) is used to measure an industry's contribution to the overall economy. IVA is forecast to grow by an annualised 2.3% over the 10 years through 2023-24. The industry is therefore expected to underperform annualised real GDP growth of 2.7% over the same period. Over the past five years, the number of industry establishments and enterprises have fallen as the industry's major players have looked to consolidate their positions and competition has increased. Furthermore, the high market share concentration has led to many unprofitable businesses to exit the industry over the past five years. Cus...purchase to read more.

    Additional Insights for the Daily Deals Sites Industry

    IBISWorld has determined the most important Key Success Factors for the Daily Deals Sites are:

  • Effective product promotion
  • Ensuring pricing policy is appropriate
  • Ability to alter goods and services produced in favour of market conditions
  • IBISWorld analysts also discuss how external factors such as Real household discretionary income and Internet subscribers 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?

    Industry firms primarily operate websites that offer discounts on goods and services over limited time periods, typically 24 to 36 hours. Operators generally provide vouchers and coupons that can then be redeemed at bricks-and-mortar retailers for physical goods and services.

    Industry Products
  • Travel and accommodation packages
  • Beauty products and services
  • Dining and restaurant deals
  • Other deals
  • Fashion and clothing deals
  • Industry Activities
  • Offering daily product deals
  • Offering daily service deals
  • Offering other daily deals
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household discretionary income
  • Internet subscribers
  • Consumer sentiment index
  • Population aged 50 and older

  • Current Performance
  • Daily deals explained
  • Demand
  • Competition and other dynamics
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and profitability
  • Growth avenues
  • Innovations
  • 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
  • Consumers

  • Key Selling Industries
  • Consumer Goods Retailing
  • Hotels and Resorts
  • Restaurants
  • Supermarkets and Grocery Stores

  • Products & Services
  • Beauty products and services
  • Travel and accommodation packages
  • Dining and restaurant deals
  • Other deals
  • Fashion and clothing deals
  • Chart: Daily Deals Sites Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 18 to 34
  • Consumers aged 35 to 44
  • Consumers aged 45 to 54
  • Consumers aged 55 and over
  • Consumers aged 17 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
  • Purchases
  • Wages
  • Advertising
  • 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
    Catch Group Pty Ltd, Lux Group Limited, Groupon Australia Pty Ltd,
  • Table: Catch Group Pty Ltd - financial performance
  • Table: Lux Group Limited - financial performance
  • Table: Groupon Australia Pty Ltd - 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 (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Bricks-And-Mortar Retailers
  • An organisation that has a physical store location.
  • Ecommerce
  • Electronic commerce is the buying and selling of products or services over the internet.
  • Group Buying
  • A business model where products and services are offered at significantly reduced prices on the condition that a minimum number of buyers make a purchase.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Daily Deals Sites market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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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