Group Buying

Group 27, Members

Dhruv ThadaniShouvik DasSatish RajgopalanSuchita GuptaRicha Agrawal

Group Buying Using Social

• Group buying, also known as collective buying.• It exploits the offers where retailers offer products and services at significantly reduced

prices on the condition that a minimum number of buyers would make the purchase.• Typically, these websites feature a "deal of the day", with the deal kicking in once a set

number of people agree to buy the product or service.• Group buying is a perfect example of social commerce integration• Group buying with social commerce not only simplifies this process but makes it a lot

of fun too.• Social commerce integrates the natural human need to connect with each other with

their need to buy things.• In recent time, group buying websites have emerged as a major player in online shopping business.

Business model Introduction

• If subscribers to a discount website are tempted by a discount offer, they enter their payment details online and wait.

• Once a minimum number of people sign up for the same offer, the deal is confirmed and a voucher is sent to their inboxes.

• Shops, restaurants and other retailers that partner with these discount websites have to take hefty price cuts.

• But it means they have instant access to a whole new group of customers.• The online group buying market is fragmented among hundreds of smaller players

worldwide. • The model has little barriers to entry and has gained attention from shoppers and

businesses alike globally.• According to SmartMoney, by August 2010, there were more than 500 group-buying sites

worldwide, including local sites that cater only to a single city in some instances.

TRENDS

Introduction of Innovative Payment Options

Launch of a Group Buying Tracker Portal

Deals offered in high value segments

Group Buying moves to Television

Entry into International Markets

Drivers and Challenges

Issues with Social BuyingWith a large number of group buying sites in the foray given a

large opportunity, there have been issues that cater on:

• Problems with delayed deliveries

• Issues with quality of goods

• Not answering customer complaints

To mitigate the problems above, the group buying code of

conduct was launched in Nov 2011 to help customers. The code

defines the sites to buy discounts from. Also, a case in point

includes Groupon’s reprimand in 2012 for various breaches.

Way Ahead for GroupON!!• Truly integrate with FB. Not just use it as a signup but use the

user information available through FB to present personalized deals.

• Why no connection between .com and .in. Why can’t the .com site have the choose country tab. So that we get local and International deals together if we want.

• Acquire local players eliminating competition and improving local presence

• Making shopping an experience. Make interest specific forums where people can discuss the viability of the deals , encourage other users to go for it and also just make friends. This will increase user engagement

Reverse of Group Buying!!• What if we have the reverse of Group Buying where instead of

retailers giving us with offers we present sellers with group deals. Every deal will show the no of customers willing to buy . Sellers can compete on price and get the deal.

THANKS