Walking the plank Downtown What i s t h e f u t u r e o f D a n i s h dea l sites? T her e a r e m a n y dea l s it es at the mo m en t a n d t h e n u m ber of them i s r i s i ng.
KATHRINE A, PHILLIP D, SVANTE F, DORTE H, EMILIE H, SOFIE J, MATHILDE M, SOFIE P, LOUISE R, MARIANNE S, RASMUS T.
oday there are about 30 different providers of deal offers in Denmark alone and the number is only increasing. Research shows that the
customers are rarely loyal for each of the different sites and that they instead mix and match offers according to interests and price proficiency. Deal sites will have to offer something special in order to keep a loyal and satisfied consumer base.
“A focus group research showed, that many don’t really have preferences for the deal providers, but
Downtown butikken ligger på trommesalen 7. 1614 København V
the deal itself was the crucial factor. Even the less known deal sites can have relevant and interesting
The last mentioned in our info graphic are excelling
This is something that the bigger deal sites dominate,
deals for the average consumer” – Says Shaun from
by having chosen a clear deal niche. It is to be
and something Downtown has done really well,
dealsites.dk to trendsonline.dk.
expected that the niche sites will keep their
averaging 8,5/10 on trustpilot.
All deal sites offer more or less the same thing.
customers when searching for an offer in a unique
There are lots of skincare, sushi, rubber boots and
category. This does not only imply the consumers but
cheap charter vacations. Dealsites.dk and Bownty.
also their offer providers, who they need to keep a
As niche deal sites stand out just by servicing a
dk are deal aggregators and live from the disloyal-
good relationship with.
narrow market the bigger deal sites might also want or need to stand out in order to have a future. We
ty of their consumers in their chase of the ultimate offer. The sites offer a personal deal search as well as a collection and comparison of the countries best deals. A lot of deal sites see an extreme growth in the entry phase and a quick expanding customer base, client
“A major game changer for most of the deal sites, that do not want just one focus area, could be toreach their customers in a different way than usual.”
have seen that Downtown has tried to do so by opening a physical retail store in Vesterbro, Copenhagen. Unfortunately retail stores are already having a hard time selling products because of the incline in online retail, so now they not only have to
base and staff hiring. This breeds more and more
Today most sites use email subscriptions as their
focus on their deal site but also on the declining retail
providers and fires up entrepreneurs who all want
main source of advertising but most consumers
a glimpse of the treasures. The main reason for the
regard these emails as spam. Some of the deal sites
flooding of deal site startups is because of the
have even started to use apps where the deals you
minimum level of skill it takes to make an easy profit.
see are the ones near your location, which works
You need a decent website template, a few offers
very well when executed correctly. Smartphones and
from external deal providers and there you go –
applications are increasing purchases even though
Currently the store works like your local post office,
10 % of every sold item. Even if you are a new site
most of these customers are from a younger target
you can order something from Downtown online and
with low traffic you will still be shown on the deal
then pick it up in the store so you do not have to pay
“So what could the physical store do in order to benefit the company?”
delivery costs. But the store could even create
aggregator sites. Point system
revenue if they sold products that were not available
“In a few years I think, it will fall to around 5-10 deal
Another thing deal sites could do in order to keep
online, in hope of additional sales to store guests.
sites. There is just not room for more than that – and
their customers would be some sort of point system
This could make the store more individual with its
there are not enough email addresses of profitable
that could have consumers coming back, if they
own products, but they could also have the store be
quality for more. It will most likely be the big guns on
could save extra on every 5th deal like buying coffee
a showroom for the
the market with a media house or ad network behind
with a coupon in a 7/11. In a community and
physical products they sell, with the option to try on
them that will stay. For example Sweetdeal,
economy where saving is very popular this could
clothes or feel the product in hand before you buy it.
Downtown, Dagens Bedste and ourselves.” – says
help them even further. A reward system or loyalty
So by tackling some of the bigger problems with
Tasha Michelle Masmas to 24timer.
program could also help the consumers that have
online shopping with their physical store they can
been using the site for a longer period of time with
give their customers a much better experience.
The niche deals
special offers that only they receive - this could
”Given how easy it is to find and buy books,
In march 2013 one of US’ largest deal sites Groupon
work well if the deal site does not use email listings
electronics, and other items online, why do
fired their CEO when they started to decline, they
regularly and only send out a couple each month to
people continue to buy in stores at all? The reason
were not able to make enoughrevenue for all of their
the loyal customers with special personalized deals
is that online buying generates what economists call
expenses which resulted in a restructure of their
disutility: inspecting digital products is
sales strategy. This is a clear expression of where
Another factor that most deal sites already focus on,
difficult, shipping can be slow or expensive, and
Denmark’s deal site market is currently headed.
which cannot be stressed enough, is customer
returning products can be challenging.”
About 30 deal sites of those existing in Denmark right
satisfaction and buyer’s safety - complaints need to
– Avi Goldfarb from the technologyreview.com.
now only a few have chosen a niche area or a
be handled with care and understanding. The staff
special way of offering new deals.
needs to be kind and see the issues the customer
Old fashioned deeds
has faced and handle it accordingly.
Another important factor, and this is not only for electronics stores but for all retail stores, is that in these stores it is not only the price that matters, which is usually the case for online purchases. But the old fashioned deeds which contain good professional guidance, local adaptation and a good business acumen. By selling a lot of different products it will be hard for Downtown to give a good professional guidance and they should therefore make sure that the solution they choose for the retail store is very specific.
Infografik, viser oversigt over de danske dealsites, anno 2014.