Deloitte have used their annual technology predictions report to forecast that hundreds of group buying sites will go belly up this year - whilst the massively crowded market will result in margins being squeezed for those that do survive.The consultancy firm highighted what has become a massively competitive market with no barriers to entry - despite Groupon's infamous "competitive moats" - and said of the players in the sector:
"They may need to accept lower commissions on sales of coupons to entice retailers to consider using their services, as well as shifting their focus from discount size to value, utility or even rarity to change the perception of what they have to offer."Groupon was of course one of many of the new wave of tech companies to go public last year and tanked accordingly, as have the likes of Zynga - who Deloitte believes will need to switch to a more traditional advertising based model to maintain profitability in the future.
The report, which can be found here, also unsurprisingly predicts that consumers will continue to buy more and more tech this year.
No comments:
Post a Comment