The group buying market grew 72% year-on-year in the first quarter of 2012 to $123.5 million, but the market has contracted on the December quarter, according to research firm Telsyte.
Despite the quarter one growth, the total group buying market actually declined 14% on the December quarter, due to retail seasonality, a reduction in overall number of market participants and a lessening in the average price of deals sold.
According to Telsyte, the group buying sector will hit $600 million in the 212 calendar year, and is on track to reach $1 billion by 2016.
Telsyte senior research manager Sam Yip said: ““Group buying sites are sitting on a gold mine of customer and business information amassed from the 14.5 million vouchers sold in the past 24 months. The first group buying sites to segment their customers, and offer targeted deals, will take the industry to the next phase,
“Although consumers today are able to download mobile applications for their favourite group buying sites, these applications are still in their infancy with most only offering the same deals that are available on a browser.
“The ability to integrate mobile social networking with deals, offer location-based deals, and allow merchants to push deals immediately to customers within their vicinity will be the pillars of growth in the next two years.”
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