F.Y.I.

Mothercare breaks LivingSocial group buying record, sells $2.9m in vouchers in a week

Mothercare has broken group buying site LivingSocial’s record for daily deals. The parenting brand sold almost 22,000 vouchers in a week, valued at $2.9m.

The announcement:

Mothercare tops the record for sales on Australia’s number one daily deals site, LivingSocial, selling 21,643 vouchers in seven days, with a total pre-discount retail value of $2.9 million. The deal beat Tourism New Zealand’s record deal in June that sold 19,069 $1 ski passes at Mt Ruapehu, New Zealand in just 2 hours 53 minutes.

The Mothercare deal offered discounts of more than 60 per cent on $99, $150 and $250 gift vouchers to be redeemed on any maternity, baby and kids fashion, targeting a new customer base for Mothercare’s 20+ Australia-wide and online stores.

“The deal has exceeded our expectations, thanks to LivingSocial’s reach and their contribution to media spend, we have attracted a number of new customers: about a third of customers coming in store with the LivingSocial deal are saying they are new to the Mothercare brand,” says, Jonathan Gavshon, General Manager of Mothercare Retail Trade.

As Australia’s leading daily deals site, LivingSocial Australia, with its two websites LivingSocial.com.au and JumpOnIt.com, attracted a total of 1,263,000 unique visitors in July. LivingSocial.com alone attracted 1,063,000 unique browsers – making it the number one daily deals site in the country.

“The success of the Mothercare deal indicates the enormous potential LivingSocial has for not only SME’s but for national retailers looking to attract a new customer base. At a comparatively low outlay to traditional marketing channels, the marketing dollar goes further on LivingSocial, reaching 1.5 million email subscribers nationally, and the most unique browsers of any daily deals site,” says CEO of LivingSocial Australia and New Zealand, Colin Fabig.

In a June survey of 211 merchants who listed deals with LivingSocial and Jump On It, more than 95 per cent said advertising with daily deal sites brought more customers through their doors. Eighty per cent of respondents said daily deal sites brought the most new customers of any channel when compared with other marketing channels such as Google search advertising, local newspaper advertising, Yellow Pages advertising, direct mail, radio, TV and PR.

Jonathan Gavshon of Mothercare says, “The deal was an effective way to raise brand awareness given we are the leading mother and baby store in the world, but new to Australia. The customers that have come into our stores so far have been really excited about the quality of the product and what great value the LivingSocial vouchers are. We are encouraged by their positive response.”

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