April 6, 2011 § Leave a comment
There are many legacies of the Great Recession and it seems that coupons, deals and a desire to win by shopping smart are among the most important. All we have to do is look around us to see the impact made by coupons and daily deal sites. In fact, the trend is so strong that a new television series Extreme Couponing premieres on the TLC network tonight. The show follows along some of today’s reality star extreme couponers, creating a show somewhere between Hoarding and Deal or No Deal.
Daily deal sites have become a way of life. I get four in my inbox daily and more are screaming for my attention. According to BIA/Kelsey, U.S. consumer spending on deal-a-day offers, is expected to grow from $873 million in 2010 to $3.9 billion in 2015, representing a 35.1% compound annual growth rate (CAGR).
BIA/Kelsey estimates there are 178 cities with deal-a-day sites reaching 102 million people in the United States. Groupon and LivingSocial are still the leaders in a marketplace of 200-plus players, but the broader field includes destination sites and white-label providers working with local media providers such as directory companies, newspapers, and radio and television operators. There are all types out there. Some more beneficial to retailers than others. I have written about some of the specialty sites like Daily Deals for Moms who provide better marketing advantage for retailers.
A new study Moms Shopping Trends Report from Totsy.com and BSM Media reveals that 86% of Moms have purchased from online sale sites and 32 percent of Moms place this category in their top three cost saving strategies. There is a certain “high” that comes from saving money. The study says that one in four moms compare finding a good deal to the emotional value of guiltless chocolate or a special night with a significant other. Almost 94 percent of moms admit to buying ’feel good’ purchases for themselves, with the most popular items being clothing, sweet treats and accessories.
But where will all this addiction lead? All of the recent studies on shopping have reported that our shopping habits have been altered for good. But are we really saving money, or just feeding our new addiction to save money? And what happens to brands in this saving frenzy? Are they becoming the grist for the commodity meal? Some brands have entered the fray with their own shopping partnerships to ensure they have a place at the table. One that I have written about is Sole Society, a partnership of HauteLook and Nordstrom. More of these type of strategic partnerships will have to happen to ensure that brands keep their relevance.