Australians splashed $115m on group buying sites in just the first three months of the year, but that figure is down 7% compared to the same period in 2012.
Despite the drop, technology analyst firm Telsyte expects the market to remain steady with revenues of around $500m in 2013 as the market matures.
Players will become more selective in the types of deals they offer with the year’s strongest categories to be FMCG, event tickets and fast-food offers.
There is a trend towards more expensive deals. In quarter one travel deals and premium event offers were the fastest growing segments.
“Food, dining, health and beauty will continue to provide a solid base of revenue, however, in 2013 we expect to see the emergence of deals which aim at more affluent demographics, and deals which require consumers to commit to ongoing delivery of products such as health supplements, baby consumables, and hygiene products,” says Telsyte’s senior research manager.
There will be competition for the group buying giants, including Groupon, Scoopon, LivingSocial, Cudo and OurDeal, this year with variations of the daily deal site to emerge.