subject: Understanding The Most Likely Future Of Daily Deals [print this page] If you are wondering about the future of daily deals, you should know that the proliferation of websites over the past several years which provide phenomenal savings from businesses that are local is a strong indicator for growth. Nearly $100 million dollars was generated by this industry in 2009 and is anticipated to see as much as $4 billion in sales by 2014. There are minimal barriers and many people are eager to take advantage of the daily deals opportunity. While the early concept of providing 50% off offers on things like hotel and resort accommodations or fine dinners was not a sustainable one, there is still a high potential for a strong future of daily deals if minor adjustments and innovations are made.
Groupon is currently the most commonly used daily deal site and has reported $33 million in sales in 2009 and $750 million in 2010. While numerous daily deal sites have begun to spring up, it is highly likely that leaders like Groupon, Google Offers and Living Social will continue to dominate. The ability to offer unbeatable offers and having a massive platform is essential for surviving in this industry. This is due in large part to the fact that all daily deal websites essentially perform the same basic function.
There is also the very real problem of market saturation. There is such a large number of companies who are willing to take part in the daily deal program and will go to the company with a phenomenal image and an excellent and proven track record. Consumers are always interested in offers where they can get meals for half of the normal price or stay in a reputable resort for a mere fraction of the standard cost. Companies many want to continue to provide consumers with offers like these in the forthcoming months and years, especially once consumer spending has increased and it becomes again possible to lure customers in without first dramatically slashing prices. While the sales appear to be phenomenal at the present moment, there is no certainty in how long they will last. Just as there was a major surge in the real estate industry, that specific area eventually collapsed. The same is true of those individuals who were able to use high-tech stocks to generate fortunes in the 1990's only to experience tremendous loss just before the turn of the 21st century. Lacking diversity and rife with greed, the downfall of this business sector cost many investors dearly.
Woot.com is one site that has been vigilant on this front. Rather than offering a smattering of different offers, Woot.com has begun to target specific consumer groups with offers that are tailored to meet their interests or needs. Living social specializes in targeting specific regions or cities. The future of daily deals will almost surely include increased research into the habits of consumers and the targeting of specific markets. While even this strategy is likely to be rendered ineffective by both time and market saturation, it will enable savvy business owners to restructure their companies in order to stay relevant in this industry.
