Groupon entered the Dutch market in 2010 by acquiring Germany based CityDeal. Both the acquisitions and the rapid growth in the Netherlands afterwards are exemplary for Groupon’s global growth strategy. We studied the development of Groupon within the Dutch market.

1.
Groupon
and
the
Dutch
daily
deal
market
2011
Learn
everything
about:
• Revenues
• Key
Market
Players
• Market
Shares
• Forecasts

2.
Table
of
Contents
Introduction
..........................................................................................................................................
3
Facts
&
figures:
Groupon
and
the
online
market
in
the
Netherlands
...........................
4
The
Dutch
(online)
market
........................................................................................................
4
Groupon
in
the
Netherlands:
key
figures
.............................................................................
4
The
daily
deal
market
in
the
Netherlands
................................................................................
4
Groupon’s
daily
deal
results
in
the
Netherlands
...................................................................
6
Number
of
offers
published
.......................................................................................................
6
Product
Categories
........................................................................................................................
5
Prices
...................................................................................................................................................
5
Discounts
...........................................................................................................................................
7
Buyers
and
Transactions
............................................................................................................
6
Consumer
spending
......................................................................................................................
8
Consumer
spending
per
category
...........................................................................................
8
Conclusions:
more
deals,
less
local,
fewer
buyers
per
deal
.........................................
9
Groupon’s
success
story
in
the
Netherlands
.................................................................
9
The
Downside
.............................................................................................................................
9
Less
local
.......................................................................................................................................
9
Sustainability
of
the
daily
deal
concept
...........................................................................
9
Key
Players:
who
are
they?
..........................................................................................................
10
Would
you
like
to
know
more?
..................................................................................................
11
About
Media
Intelligence
Lab
.....................................................................................................
11
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3. Introduction
Groupon
entered
the
Dutch
market
in
2010
by
acquiring
Germany
based
CityDeal.
Both
the
acquisitions
and
the
rapid
growth
in
the
Netherlands
afterwards
are
exemplary
for
Groupon’s
global
growth
strategy.
We
studied
the
development
of
Groupon
within
the
Dutch
market.
The
document
provides
unique
insights
into
the
Dutch
market
for
daily
deals
containing
key
figures
on
Groupon’s
deals
(prices,
discounts,
number
of
deals
offered,
turnover
figures)
and
the
market
for
daily
deals
(market
size,
key
market
players,
revenues
and
market
shares).
We
also
forecast
on
how
the
daily
deal
market
will
develop
up
until
2015.
About
our
research
During
2011
we
performed
in-­‐depth
desk
research
on
key
market
players:
who
they
are,
their
deals
and
their
sizes.
Next
to
that,
we
gathered
data
on
deals
in
the
Netherlands
which
we
analysed.
Together
we
studied
almost
2,000
daily
deal
offers
and
their
results.
Combining
these
insights
helped
us
to
get
a
complete
picture
of
what
the
market
looked
like
in
2011.

4.
Facts
&
figures:
Groupon
and
the
online
market
in
the
Netherlands
The
Dutch
(online)
market
First
we
would
like
to
present
you
some
key
figures
on
the
Dutch
market
in
order
to
get
the
right
perspective.
Figure
1:
Key
facts
on
the
Dutch
online
market
Groupon
in
the
Netherlands:
key
figures
We
monitored
and
analysed
the
market
for
daily
deals
in
the
Netherlands
during
2011,
resulting
in
some
revealing
facts
about
Groupon’s
size
and
growth
in
the
Netherlands.
We
will
share
some
key
figures
below:

5.
Figure
2:
Key
figures
Groupon’s
results
in
the
Netherlands

6. Groupon’s
daily
deal
results
in
the
Netherlands
Number
of
offers
published
The
number
of
daily
deals
published
by
Groupon
grew
strong
in
the
course
of
2011:
from
30
per
day
to
more
than
150.
The
total
number
of
deals
offered
in
2011
added
up
to
37.000.
Figure
3:
Numbers
of
offers
published
by
Groupon
in
the
Netherlands
(Q1-­‐Q4,
2011)
Cloning
offers
Note
that
similar
deals,
published
in
two
different
cities
are
considered
to
be
two
different
deals.
This
way
Groupon
‘artificially’
increased
their
number
of
offers
published
by
cloning
their
offers.

7. Discounts
Discounts
of
offered
deals
averaged
58,5
%
in
Q1.
During
the
year
they
went
slightly
down
from
59,2
to
58,0
%.
This
was
due
to
the
growing
amount
of
Travel
deals
within
Groupon’s
daily
deal
offers.
Travel
vouchers
carry
the
lowest
discounts,
with
averages
down
to
47,6%
(Q3,
2011).
Between
Q1
and
Q3
Travel
voucher
discounts
dropped
by
almost
10
points.
Within
the
category
Products,
discounts
went
up
by
almost
5
points.
Discounts
in
the
local
categories
(Restaurants
and
Activities),
also
went
up.
Figure
4:
Average
discount
Groupon
Vouchers
-­‐
by
Category
Q1
and
Q3,
2011

8. Consumer
spending
Groupon’s
revenues
experienced
an
average
of
50%
quarter-­‐on-­‐quarter
growth
in
the
first
3
quarters
of
2011.
Last
quarter
growth
we
estimate
at
65%
because
of
the
December
holiday
season.
Figure
9:
Groupon’s
estimated
quarterly
revenues
in
the
Netherlands:
2011
Consumer
spends
per
category
At
the
start
of
the
year,
most
consumer
money
was
spent
in
the
categories
Activities,
Café&Restaurant
and
Health&Beauty.
During
the
year
this
changed
in
favour
of
the
category
Products.
The
relative
importance
of
this
segment
grew
from
4.5%
to
33.5
%
in
six
months
time.
Figure
10:
consumer
spends
per
category

9.
Conclusions:
more
deals,
less
local,
fewer
buyers
per
deal
Groupon’s
success
story
in
the
Netherlands
It
is
clear
that
Groupon’s
strategy
focuses
on
fast
worldwide
expansion.
This
expansive
strategy
made
it
market
leader
in
the
Netherlands
where
–despite
a
large
number
of
competitors
-­‐
Groupon
was
able
to
get
hold
of
more
than
83%
of
the
market.
Quarter
on
quarter
turnover
growth
(CQGR)
was
more
than
50%
on
average.
This
resulted
in
revenues
of
around
115
million
euro
for
2011.
The
number
of
deals
offered
grew
even
faster
than
the
number
of
vouchers
for
deals
purchased,
resulting
in
a
decline
of
buyers
per
deal
(162
to
53)
between
Q1
and
Q3.
This
is
illustrated
in
the
chart
below.
Turnover
growth
was
mainly
accomplished
by
raising
average
deal
prices.
Figure
5:
illustrating
growth
of
deals
offered
by
Groupon
vs
average
purchases
per
deal
The
Downside
Groupon’s
entry
into
the
Dutch
market
may
have
been
a
success
story,
there
are
reasons
for
concern
about
what
it
will
do
in
the
future.
Less
local
Although
Groupon
is
well
known
for
providing
local
offers,
we
see
that
its
offers
became
less
local.
So-­‐called
National
Deals
are
increasingly
responsible
for
the
company’s
turnover.
Additionally
City
Deals,
which
are
meant
to
provide
in
local
offerings
are
more
often
offered
by
non-­‐local
merchants
(such
as
web
shops).

10. Key
Players:
who
are
they?
Figure
6:
key
players
daily
deal
market,
their
estimated
revenues
and
who
they
are

11.
Would
you
like
to
know
more?
We
can
imagine
to
have
triggered
your
interest
about
the
online
media
landscape
in
the
Netherlands
and
other
European
countries.
Whether
you
are
planning
a
European
launch
or
need
information
for
your
day-­‐to-­‐day
business,
we
can
help
you
to
find
the
information
you
need.
Don’t
hesitate
to
contact
us.
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