Fastest Rising Group-buying Sites in Nigeria saved customers N1.6 Million
I want to take a brief dive into growth of Group-buying sites in Nigeria, with a keen focus on the two leading operators and mention for others I can lay my hands on. For now, DealDey and QluQlu are the leading players on the scene.
|
Site |
Deals (Closed)* |
Total Deals Sold |
Average Customers |
Amount Saved (N) |
|
21 |
394 |
18 |
883,860 |
|
|
19 |
425 |
22 |
735,530 |
Source: Official deals pages of each company.
* Number of deals that have been complete as of 09/06/2011
Numbers don’t lie, such is the case of the two giants in the industry. QluQlu started a bit earlier than DealDey, so they could be forgiven for being ahead in number of deals and money saved.
Looking at the trend, we could conclude that increase in awareness also reflect in the number of deals sold. Average deals sold by QluQlu is 18 as Dealdey on the other hand record 22 overall.
QluQlu is ahead in number of deals sold and total money saved for customers while DealDey on the other hand is ahead in number of customers and average deals sold.
Conclusion
Group-buying is as old as commerce in Africa and as such, awareness in this space will continue to go up as more merchants sign up to the system. This is also money for these companies; it’s possible that they take home at least 30-50% of the total money sold from the deals. Groupon, the father of all takes home 50% of each deal. More so, if things happening in the US is anything to go buy, we should expect average Dick, Harry and Kayode to launch their own group-buying business to take advantage of the growth. Can we see any of this company get listed in Nigerian Stock Exchange just as Groupon is preparing to go public?
Hi Webtrends,
Don't think this is a fair comparison.
While Qluqlu may have been running deals before DealDey, they were not doing true Group Buying deals. The Group Buying model is such that a user has to pay the group buying site first before getting a coupon which the user then takes to the Merchant to enjoy the service. This wasn't the model used by Qluqlu when it started daily deals.
Qluqlu's initial model was free couponing where users got the coupon without having to pay online, instead users pay to the merchant. This model means that there was no real commitment (payment for the deal) from the customer's part i.e. I could buy the deal, get the coupon but I may not go there to use it as I hadn't payed for the service. In other words, a deal may have up to 72 buyers on the Qluqlu website, but in reality only a handful of those buyers will go to the merchant. So the merchant will not receive money for all the 72 buyers. This is not true group buying!
Check this link to listen to an interview by Kofi, Qluqlu management: http://soundcloud.com/cpafrica…
DealDey on the other hand has always taken the more difficult road of providing true measurable value to both customers and merchants. Comparing the history of both these services is like comparing apples and oranges.
Tope, in as much as I appreciate your comment, i think the information written above is quite accurate in the sense of the figures. All analyses are based on them and with the insight you just pointed, I think it added to the conversation. Thank you for your insight.
This is a welcome development in Nigeria. With the cash-less economy drive, I think it’s really nice we welcome this style of shopping. A recently launched site that is not on this list is http://www.mymetromall.com. I actually bought a few stuffs from them and twas quite an interesting experience. Just that they don’t do much advertising like dealdey, so people are not familiar with the name. Has anyone seen it yet? I think you should check them out, they operate full group buying like dealdey, they are quite good.