As always….a young and entrepreneurial spirit, Andrew Mason, comes up with an idea to create added value for customers and suppliers. A basic idea, group leveraged discounts, transferred to the flat world.
We all know group discounts….it’s an easy principle: a large group can negotiate small prices because of the size of the order. Mason transferred this system to the flat world and into the social media with Groupon. It’s already the fastest growing company in the US, and now wants to concur the world. You register and log-on through the groupon of your town. Groupon will each day sell a product or service with a huge (up to 50%) discount. The only condition is that enough people by the offer. In the US they’re already working with major companies, but in Europe for instance they’re offering small local initiatives (at a very good price!)…..Once they can open the box with the big deals from the major companies they’re bound to get huge! To get word aroudn Groupon uses social media channels, every Groupon-member who tells about the deals through Facebook, Twitter, Netlog, … gets a 6 EUR in his account everytime an interested member steps into a Groupon deal.
Google already saw a huge opportunity and offered up to 6 billion Dollar for Groupon but Mason keeps the company under his own wings. Will he be able to maintain his market share since there are a lot of new initiatives starting up with the same idea, f.i. Living Social (which is a Amazon.com partner and sold a value of 1,3 mio EUR in Amazon.com-coupons in only 24h time, with every coupon was paid 10 EUR but had a value of 20 EUR), Groupprice, Localdealsites, vente-exclusive, ….
Future will tell, but this will get huge in 2011!
You can share your hot deals and remarks through the comment section.
[Update: january, 26 2011: Today Google announces Google Offers a site where discounted offers will be posted for a limited time frame. When Google offers will be operational was not yet announced! – As I predicted….this is going to the hype of 2011!]