Group Buying & Global Recession
The global recession that started back in 2008 is still on and things does not look bright to many economies worldwide, an endless roller-coaster ride from the US to Europe does not seem to slow down anytime soon. Meanwhile a new online phenomenon developed and later on was known as “group buying“.
Was the “questionable” success and business model of group buying sites built at the expense of the recession and consumers who are spending less every day and are trying to cut on their average basket?
Before consumers can resume spending as in their previous lives, many of them must reset their balance sheets. How can US consumers keep spending when are they consumed by the economic pressures and it will take an average of 30 years to payoff what they owe on credit cards?
What if the global economy recovers, will these group buying sites be doomed?
Already lots of consumers entered the daily deals fatigue mode and it doesn’t always work for retailers and businesses financially?
The recession also pushed a new type of business for the food and restaurants industry and its first players started to appear and this phenomena is called Social Dinner, Group Dining or Social Meals.
Grub With Us is already up and running and Social Dine is launching soon.
On a separate note, a monthly survey, conducted by IGD, has found that 29% of consumers in the UK are planning to switch their food shopping from their usual supermarket to hard-discounters, in a bid to cut down on their shopping bills in the middle of escalating inflation.