Australians continue to have a zest for online group buying deals with the market growing to be worth $498 million in 2011, according to local emerging technology analyst firm Telsyte.
Since commencing in 2010 group buying has grown to become a half a billion dollar local industry with some 5000 deals published and an average of 1 million vouchers sold each month.
Telsyte expects the group buying market to grow an additional 30 per cent in 2012, exceeding $600M and reaching $1 billion no later than 2015.
The best performing category was physical products (e.g. jewellery, electronics, clothing, etc) and now accounts for 30 per cent of the total market.
2012 will be a year of continued market growth fuelled by the refocussing of group buying sites on driving customer loyalty.
The top eight group buying sites for the 2011 calendar year were Scoopon, LivingSocial, Spreets, Cudo, Groupon, OurDeal, Deals.com.au, and Ouffer.
While there were more than 80 sites in operation in 2011, Telsyte expects that the barriers to entry will increase in 2012 and some sites will fail due to lack of scale.
The Q4 results show the continued rise of the multinational group buying sites like LivingSocial and Groupon. Groupon was market leader in December 2011. LivingSocial was the leader in Q4. Scoopon was the overall market leader in 2011.