Did you see that gap in the market? Oh wait, it’s gone

It’s one thing finding a gap in the market and launching a new business model around it.

But when more than one person then identifies that same gap, it can very rapidly go from being an untapped goldmine, to risky business.  

Mumbrella recently wrote about the launch of Scoop of the Day, the site that offers Sydneysiders a discounted offer on anything from restaurants to spa treatments available only for 24 hours.

Its founder has modelled this business on the very successful US website Groupon. The problem is however, is he’s not alone.

This week a Sydney-based start up Jump On It announced its launch. And guess what, it’s also basing its model around the success of Groupon.

And there’s more. Added to the list of sites already in Australia/about to be launched/considering expansion are – deep breath – Ouffer, Spreets, Catch of the Day, Offer Me and Crowdmass.

Don’t get me wrong, it’s a great idea and in the US it’s now estimated to be worth $5bn per annum. But Australia is nowhere nearly as big as that market.

In order for these sites to survive, much less expand and grow around the country – as some of cases may be – aggressive brand differentiation will be key.

But even having said that, my guess is the likelihood of all of these sites surviving will be slim indeed.

Camille Alarcon

Comments


  1. snowflake
    12 May 10
    2:59 pm

  2. I absolutely love the idea behind these sites (and am signed-up to most of them), but have to agree – there is no way they can all survive in our smallish market.

  3. Tom
    12 May 10
    3:43 pm

  4. Woot was the originator of this concept, it started in ’04 (four years before Groupon).

    There is an Australian version of Woot, Zazz, which is still going. Although personally I think it’s a bit rubbish compared to Woot – but then Woot has 10x the volume of potential buyers, so..

  5. Tom
    12 May 10
    3:44 pm

  6. Oh, and I think the sudden popularity might have something to do with the $US 135 million Groupon got from Digital Sky Technologies last month..

  7. Chris Walton
    12 May 10
    3:51 pm

  8. Someone should launch a site that offers the best offer from the sites that all offer an offer a day.

  9. The Ear
    12 May 10
    4:14 pm

  10. Be OK if the last Scoop wasn’t back on April 19 – is it still operating? No Twitter updates either.

  11. Tom
    12 May 10
    4:16 pm

  12. @Chris: Hilarious idea. Love it.

  13. Chris
    12 May 10
    4:24 pm

  14. Try http://au.dealsucker.com/ – it does aggregate some of the one-day sale sites

  15. Vijay
    13 May 10
    9:52 am

  16. The whole game is about traffic and eyeballs to the site. Catchoftheday the parent company of scoopon.com.au is The country’s most visited online shopping site currently with over 400,000 members. It is quite obvious the it’s sister site scoopon, has a big jump on the market already. You will notice that some of the names mentioned on top are already struggling. In every niche there is a market leader that does exceptionally well, while the others may do ok. wotif,realestate,seek,carsales,catchoftheday,dealsdirect are the winners currently in their respective categories.
    The winner will emerge soon: 1. The one with the most consistent supply of great deals 2. Traffic : You can put the best deal on the site, but if you don’t have the eyeballs that see the deal – not many will be sold !

    Overall : competition is great for everyone, it brings more participants to the space and the strong will survive.

  17. alex
    13 May 10
    7:21 pm

  18. And another aggregator site has just started up called All the deals. They’re going to have their work cut out keeping up with all the new sites that are launching!!

  19. Hugo
    14 May 10
    9:51 am

  20. Not sure there’s a viable gap in the market for these things … Not sure they’re worth doing to begin with.

    It’s like those crappy city guides popping up all over au … Just because no one is doing something online doesn’t mean you should do it half arsed.

  21. reggi
    14 May 10
    6:45 pm

  22. I saw a market in the gap, but I didn’t mind the gap and fell into the cracks that are so wide in these copycat business models…

  23. Mark s
    17 May 10
    10:29 pm

  24. If we all stopped buying stuff so fast perhaps they’d stop starting businesses oriented around selling us stuff faster!

    If you get my drift

    storyofstuff.com

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