groupon's 2011 results in the netherlands (free sample)
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Groupon entered the Dutch market in 2010 by acquiring Germany based CityDeal. Both the acquisitions and the rapid growth in the Netherlands afterwards are exemplary for Groupon’s global growth strategy. We studied the development of Groupon within the Dutch market.TRANSCRIPT
Groupon and the Dutch daily deal market
2011
Learn everything about:
• Revenues • Key Market Players • Market Shares • Forecasts
Table of Contents Introduction .......................................................................................................................................... 3 Facts & figures: Groupon and the online market in the Netherlands ........................... 4 The Dutch (online) market ........................................................................................................ 4 Groupon in the Netherlands: key figures ............................................................................. 4
The daily deal market in the Netherlands ................................................................................ 4 Groupon’s daily deal results in the Netherlands ................................................................... 6 Number of offers published ....................................................................................................... 6 Product Categories ........................................................................................................................ 5 Prices ................................................................................................................................................... 5 Discounts ........................................................................................................................................... 7 Buyers and Transactions ............................................................................................................ 6 Consumer spending ...................................................................................................................... 8 Consumer spending per category ........................................................................................... 8 Conclusions: more deals, less local, fewer buyers per deal ......................................... 9 Groupon’s success story in the Netherlands ................................................................. 9 The Downside ............................................................................................................................. 9 Less local ....................................................................................................................................... 9 Sustainability of the daily deal concept ........................................................................... 9
Key Players: who are they? .......................................................................................................... 10 Would you like to know more? .................................................................................................. 11 About Media Intelligence Lab ..................................................................................................... 11
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Introduction Groupon entered the Dutch market in 2010 by acquiring Germany based CityDeal. Both the acquisitions and the rapid growth in the Netherlands afterwards are exemplary for Groupon’s global growth strategy. We studied the development of Groupon within the Dutch market. The document provides unique insights into the Dutch market for daily deals containing key figures on Groupon’s deals (prices, discounts, number of deals offered, turnover figures) and the market for daily deals (market size, key market players, revenues and market shares). We also forecast on how the daily deal market will develop up until 2015. About our research During 2011 we performed in-‐depth desk research on key market players: who they are, their deals and their sizes. Next to that, we gathered data on deals in the Netherlands which we analysed. Together we studied almost 2,000 daily deal offers and their results. Combining these insights helped us to get a complete picture of what the market looked like in 2011.
Facts & figures: Groupon and the online market in the Netherlands
The Dutch (online) market First we would like to present you some key figures on the Dutch market in order to get the right perspective.
Figure 1: Key facts on the Dutch online market
Groupon in the Netherlands: key figures We monitored and analysed the market for daily deals in the Netherlands during 2011, resulting in some revealing facts about Groupon’s size and growth in the Netherlands. We will share some key figures below:
Groupon’s daily deal results in the Netherlands
Number of offers published The number of daily deals published by Groupon grew strong in the course of 2011: from 30 per day to more than 150. The total number of deals offered in 2011 added up to 37.000.
Cloning offers Note that similar deals, published in two different cities are considered to be two different deals. This way Groupon ‘artificially’ increased their number of offers published by cloning their offers.
Figure 3: Numbers of offers published by Groupon in the Netherlands (Q1-‐Q4, 2011)
Discounts Discounts of offered deals averaged 58,5 % in Q1. During the year they went slightly down from 59,2 to 58,0 %. This was due to the growing amount of Travel deals within Groupon’s daily deal offers. Travel vouchers carry the lowest discounts, with averages down to 47,6% (Q3, 2011). Between Q1 and Q3 Travel voucher discounts dropped by almost 10 points. Within the category Products, discounts went up by almost 5 points. Discounts in the local categories (Restaurants and Activities), also went up.
Figure 4: Average discount Groupon Vouchers -‐ by Category Q1 and Q3, 2011
Consumer spending Groupon’s revenues experienced an average of 50% quarter-‐on-‐quarter growth in the first 3 quarters of 2011. Last quarter growth we estimate at 65% because of the December holiday season.
Figure 9: Groupon’s estimated quarterly revenues in the Netherlands: 2011
Consumer spends per category At the start of the year, most consumer money was spent in the categories Activities, Café&Restaurant and Health&Beauty. During the year this changed in favour of the category Products. The relative importance of this segment grew from 4.5% to 33.5 % in six months time.
Figure 10: consumer spends per category
Conclusions: more deals, less local, fewer buyers per deal
Groupon’s success story in the Netherlands It is clear that Groupon’s strategy focuses on fast worldwide expansion. This expansive strategy made it market leader in the Netherlands where –despite a large number of competitors -‐ Groupon was able to get hold of more than 83% of the market. Quarter on quarter turnover growth (CQGR) was more than 50% on average. This resulted in revenues of around 115 million euro for 2011. The number of deals offered grew even faster than the number of vouchers for deals purchased, resulting in a decline of buyers per deal (162 to 53) between Q1 and Q3. This is illustrated in the chart below. Turnover growth was mainly accomplished by raising average deal prices.
Figure 5: illustrating growth of deals offered by Groupon vs average purchases per deal
The Downside Groupon’s entry into the Dutch market may have been a success story, there are reasons for concern about what it will do in the future.
Less local Although Groupon is well known for providing local offers, we see that its offers became less local. So-‐called National Deals are increasingly responsible for the company’s turnover. Additionally City Deals, which are meant to provide in local offerings are more often offered by non-‐local merchants (such as web shops).
Key Players: who are they?
Figure 6: key players daily deal market, their estimated revenues and who they are
Would you like to know more? We can imagine to have triggered your interest about the online media landscape in the Netherlands and other European countries. Whether you are planning a European launch or need information for your day-‐to-‐day business, we can help you to find the information you need. Don’t hesitate to contact us.
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