deal or no deal online discounters face woes
Last Updated : GMT 02:02:20
Arab Today, arab today
Arab Today, arab today

Deal or no deal? Online discounters face woes

Arab Today, arab today

Arab Today, arab today Deal or no deal? Online discounters face woes

New York - AFP

It looks like a tough sell for the online daily deals sector. After much excitement last year and a hyped public offering from Groupon, the main players are now focusing on saving money themselves as consumers show deal fatigue. Sector leader Groupon, which went public a year ago with an offering at $20 a share, has seen its stock slide some 80 percent. This week, chief executive Andrew Mason kept his job despite swirling rumors that he was to be ousted. Rival LivingSocial said meanwhile it was cutting 400 jobs, or nearly 10 percent of its staff, in a retrenchment which follows big losses for the company. Lou Kerner of The Social Internet Fund said these firms are in trouble because of a \"bubble\" which inflated their value based on unrealistic expectations. \"Shoppers are very excited about the coupons at first, but over time they get fatigued and usage drops off. The business model needs to evolve,\" Kerner said. The firms aim to make money by selling members deals for discounts on activities, items or services and then splitting the money with the businesses involved. Both firms have been seeking to diversify, but have been struggling to become profitable.\"People dramatically overestimated the value of their email lists,\" Kerner told AFP. \"They have a lot of emails, which is valuable, and people like deals... But they need to get better deals that work better for merchants, that are more attractive to the buyers.\" LivingSocial spokesman Andrew Weinstein said in an email that the Washington-based firm is seeking to realign costs \"after two years of hyper-growth\" in a move to \"help us set the company on a path for long-term growth and profitability.\" LivingSocial remains privately held, but Amazon, which owns a stake in the firm, has been forced to take a write-down of $169 million recently on that investment under accounting rules requiring a charge against earnings to reflect the lower estimated value of the company. Groupon in November reported a loss of $3 million in results that came up shy of most analyst forecasts for a small profit, creating more pressure for the Chicago-based firm. Groupon remains plagued by concerns about its accounting methods, as well as its strategy as it moves into direct retail sales. Living Social claims to have 70 million members worldwide, and Groupon more than 200 million. But analysts say those numbers don\'t necessarily lead to profits. \"The type of customer attracted to these deals is often not the type of customer that the retailers want,\" said technology analyst and consultant Rob Enderle. \"In addition there is a ton of competition, making it very likely that several of these firms will fail.\" The two firms are facing competition from small and large players: Google, for one, has a similar service called Google Offers, and recently snapped up the marketing firm Incentive Targeting to give it more tools. Facebook began an effort in the sector but ended it last year after just four months. Trip Chowdhry of Global Equities Research remains cautious on the deals sector. Chowdhry said the deals firms have \"a nice concept, a noble concept, but without any strong business model behind it.\" \"If you have some other business then it\'s fine,\" Chowdhry said. \"You can drive traffic or business to something else. If you don\'t have something else, you\'re losing money.\"

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

deal or no deal online discounters face woes deal or no deal online discounters face woes

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

deal or no deal online discounters face woes deal or no deal online discounters face woes

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today The Big Apple bike boom

GMT 10:47 2017 Wednesday ,22 November

The Big Apple bike boom
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Leaders of Russia, Iran, Turkey meet

GMT 10:12 2017 Wednesday ,22 November

Leaders of Russia, Iran, Turkey meet
Arab Today, arab today 'Advanced' cyber attack targets Saudi Arabia

GMT 10:18 2017 Wednesday ,22 November

'Advanced' cyber attack targets Saudi Arabia
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Honda recalls 800,000 minivans

GMT 11:43 2017 Wednesday ,22 November

Honda recalls 800,000 minivans
Arab Today, arab today VW says will invest over 34bn euros

GMT 07:19 2017 Tuesday ,21 November

VW says will invest over 34bn euros
Arab Today, arab today Singer Jahda Wahba has unlimited ambitions

GMT 07:56 2017 Monday ,20 November

Singer Jahda Wahba has unlimited ambitions
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 09:23 2017 Saturday ,18 November

Fedra happy for “Between Two Worlds” success

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 13:41 2017 Tuesday ,21 November

French choke up over proposal

GMT 00:44 2017 Monday ,20 November

Japanese regulators raid Airbnb

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday