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


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