Tools commonly used in the Consumer Group Buying industry for day-to-day tasks and operations.

• Groupon
• LivingSocial
• GroupOn Clone
• Woot
• Slickdeals
• FatWallet
• RetailMeNot
• Honey
• Rakuten
• CouponCabin

Common products and services typical of NAICS Code 812990-39, illustrating the main business activities and contributions to the market.

• Restaurant Deals
• Travel Packages
• Spa Services
• Fitness Classes
• Entertainment Tickets
• Home Services
• Beauty Products
• Electronics
• Clothing
• Pet Supplies

The specific certifications, permits, licenses, and regulatory compliance requirements within the United States for this industry.

• Certified Group Buying Professional: This certification is offered by the National Association of Group Purchasing (NAGP) and is designed for professionals in the group buying industry. It covers topics such as group purchasing fundamentals, contract negotiation, and supplier management. The certification is valid for three years and requires continuing education to maintain.
• Certified Purchasing Professional: This certification is offered by the Institute for Supply Management (ISM) and is designed for professionals in the purchasing industry. It covers topics such as procurement process, supplier relationship management, and contract negotiation. The certification is valid for three years and requires continuing education to maintain.
• Certified Professional In Supply Management: This certification is also offered by the Institute for Supply Management (ISM) and is designed for professionals in the supply chain management industry. It covers topics such as supply chain strategy, risk management, and sustainability. The certification is valid for three years and requires continuing education to maintain.
• Certified Purchasing Manager: This certification is offered by the Next Level Purchasing Association (NLPA) and is designed for professionals in the purchasing industry. It covers topics such as purchasing strategy, contract negotiation, and supplier management. The certification is valid for five years and requires continuing education to maintain.
• Certified Professional Purchasing Manager: This certification is also offered by the Next Level Purchasing Association (NLPA) and is designed for professionals in the purchasing industry. It covers topics such as purchasing strategy, contract negotiation, and supplier management. The certification is valid for five years and requires continuing education to maintain.

A concise historical narrative of NAICS Code 812990-39 covering global milestones and recent developments within the United States.

• Consumer group buying has been around for centuries, with the first recorded instance of group buying dating back to China's Song Dynasty in the 11th century. However, the modern concept of group buying as we know it today began in the early 2000s with the launch of websites like Groupon and LivingSocial. These websites offered daily deals on products and services, with discounts of up to 90% off. The industry quickly gained popularity, with many other companies entering the market. In recent years, the industry has faced challenges due to increased competition and changing consumer behavior, but it continues to be a popular way for consumers to save money on products and services. In the United States, the consumer group buying industry began to gain traction in the late 2000s, with the launch of Groupon in 2008. The industry quickly grew, with many other companies entering the market, including LivingSocial, Google Offers, and Amazon Local. However, the industry faced challenges in the early 2010s, with many companies struggling to turn a profit and some even going bankrupt. Despite these challenges, the industry has continued to evolve, with many companies shifting their focus to mobile apps and personalized deals. Today, the industry remains a popular way for consumers to save money on products and services, with many companies offering deals on everything from restaurants to travel.

The anticipated future trajectory of the NAICS 812990-39 industry in the USA, offering insights into potential trends, innovations, and challenges expected to shape its landscape.

• Growth Prediction: Stable

  Consumer Group Buying is expected to continue growing in the USA due to the increasing popularity of online shopping and the desire for consumers to save money. The industry is expected to benefit from the growing number of smartphone users and the increasing use of social media platforms. The industry is also expected to benefit from the growing trend of consumers seeking out experiences rather than material possessions. However, the industry may face challenges from increased competition and changing consumer preferences. Overall, the future outlook for Consumer Group Buying in the USA is positive.

Recent groundbreaking advancements and milestones in the Consumer Group Buying industry, reflecting notable innovations that have reshaped its landscape.

• Groupon+: A new service from Groupon that offers cashback rewards to customers who link their credit or debit cards to the service and use them to make purchases at participating merchants.
• Groupgifting.com: A platform that allows groups of people to pool their money together to purchase gifts for friends and family members.
• Livingsocial Escapes: A travel deals service from LivingSocial that offers discounted hotel stays, vacation packages, and other travel-related services.
• Gilt City: A luxury deals service from Gilt that offers discounts on high-end products and experiences such as spa treatments, fine dining, and exclusive events.
• Woot!: A daily deals site that offers discounted products in a variety of categories including electronics, home goods, and apparel.
• Groupon To Go: A food delivery service from Groupon that offers discounted delivery from local restaurants.
• Groupon Reserve: A premium deals service from Groupon that offers exclusive discounts on high-end products and experiences.
• Groupon Snap: A mobile app from Groupon that offers cashback rewards to customers who purchase certain products at participating retailers.
• Groupon Getaways: A travel deals service from Groupon that offers discounted hotel stays, vacation packages, and other travel-related services.
• Groupon Goods: A deals site from Groupon that offers discounted products in a variety of categories including electronics, home goods, and apparel.

This section provides an extensive list of essential materials, equipment and services that are integral to the daily operations and success of the Consumer Group Buying industry. It highlights the primary inputs that Consumer Group Buying professionals rely on to perform their core tasks effectively, offering a valuable resource for understanding the critical components that drive industry activities.

Service

Affiliate Marketing Services: These services help in establishing partnerships with affiliates who can promote group buying deals, expanding the reach and potential consumer base.

CRM Software Solutions: Essential for managing consumer relationships, tracking interactions, and ensuring personalized communication with participants in group buying.

Content Creation Services: Involves producing engaging content that informs consumers about group buying deals and encourages participation through storytelling and visuals.

Customer Support Services: Essential for addressing consumer inquiries and issues, ensuring a positive experience and fostering trust in the buying platform.

Data Analytics Services: Utilized to analyze consumer behavior and preferences, helping to tailor offers and improve the effectiveness of group buying campaigns.

Email Marketing Services: Used to reach out to consumers with targeted promotions and updates about new group buying opportunities, enhancing engagement.

Event Management Services: Used to organize promotional events or webinars that can attract consumers to participate in group buying opportunities.

Graphic Design Services: Important for creating visually appealing promotional materials that attract consumers to group buying opportunities.

Influencer Marketing Services: Engages influencers to promote group buying deals, leveraging their audience to increase participation and awareness.

Legal and Compliance Services: Important for ensuring that all group buying activities comply with relevant laws and regulations, protecting both the platform and its users.

Logistics and Fulfillment Services: These services manage the delivery of products purchased through group buying, ensuring timely and efficient distribution to consumers.

Marketing and Advertising Services: These services help promote group buying deals to potential consumers, increasing visibility and participation in the buying process.

Mobile App Development: Creates mobile applications that allow consumers to easily access group buying deals on their smartphones, enhancing user experience.

Online Payment Processing: A crucial service that allows consumers to securely make payments online, facilitating smooth transactions between buyers and businesses.

Payment Gateway Services: Facilitates secure online transactions, ensuring that consumers can safely purchase products or services as part of group buying deals.

SEO Services: Essential for improving the visibility of the group buying platform in search engines, attracting more consumers to participate in deals.

Social Media Management: Helps in engaging with consumers through social media platforms, promoting group buying deals and building a community around the service.

Survey and Feedback Tools: Used to gather consumer feedback on deals and services, providing insights that can help improve future offerings and customer satisfaction.

Training and Development Programs: Provides education for staff on best practices in consumer engagement and group buying strategies, enhancing operational effectiveness.

Website Development and Maintenance: A vital service for creating and maintaining an online platform where consumers can view and participate in group buying deals.

Explore a detailed compilation of the unique products and services offered by the Consumer Group Buying industry. This section provides precise examples of how each item is utilized, showcasing the diverse capabilities and contributions of the Consumer Group Buying to its clients and markets. This section provides an extensive list of essential materials, equipment and services that are integral to the daily operations and success of the Consumer Group Buying industry. It highlights the primary inputs that Consumer Group Buying professionals rely on to perform their core tasks effectively, offering a valuable resource for understanding the critical components that drive industry activities.

Service

Bulk Purchase Coordination: This service organizes and coordinates bulk purchases among a group of consumers, ensuring that all participants receive the agreed-upon discounts. It simplifies the buying process and ensures that everyone involved can enjoy the benefits of bulk pricing.

Collective Purchasing Platforms: These platforms facilitate the gathering of consumers who wish to buy the same product or service, enabling them to leverage their collective buying power. Users benefit from streamlined purchasing processes and often receive exclusive deals that are not available to individual buyers.

Consumer Education and Support: Providing resources and support to educate consumers about the benefits and processes of group buying, this service empowers individuals to make informed decisions. It helps demystify the group buying process and encourages more consumers to participate.

Consumer Feedback and Reviews Aggregation: By collecting and analyzing consumer feedback on products or services, this service helps potential buyers make informed decisions. It enhances the purchasing experience by providing insights into product quality and value based on collective consumer experiences.

Deal Alerts and Notifications: This service sends alerts to consumers about upcoming group buying opportunities and special deals. By keeping consumers informed, it encourages participation in group purchases, maximizing savings and ensuring they do not miss out on valuable offers.

Event-Based Group Buying: This service organizes group buying events, such as flash sales or limited-time offers, where consumers can come together to purchase products at discounted rates. It creates a sense of urgency and excitement, encouraging participation and maximizing savings.

Group Discounts Negotiation: This service involves negotiating with suppliers to secure lower prices for products or services when a certain number of consumers commit to purchasing. It allows consumers to access significant savings on items they may not typically afford, enhancing their purchasing power.

Membership Programs for Exclusive Offers: Offering membership programs that provide consumers with access to exclusive deals and discounts, this service incentivizes group buying. Members often receive additional benefits such as early access to sales or special promotions, enhancing their overall shopping experience.

Referral Programs for Additional Discounts: This service incentivizes consumers to refer friends and family to participate in group buying, offering additional discounts for successful referrals. It fosters a community of buyers who can benefit from shared savings while expanding the consumer base.

Social Media Group Buying Campaigns: Utilizing social media platforms to promote group buying opportunities, this service engages consumers and encourages them to share deals with their networks. It leverages social influence to drive participation and increase the number of buyers, resulting in better discounts.

A thorough examination of the Consumer Group Buying industry’s external dynamics, focusing on the political, economic, social, technological, legal, and environmental factors that shape its operations and strategic direction.

Political Factors

Economic Factors

Social Factors

Technological Factors

Legal Factors

Economical Factors

An in-depth look at the Consumer Group Buying industry's value chain, highlighting its role, key activities, and efficiency strategies, along with its unique value drivers and competitive strengths.

Value Chain Position

Category: Service Provider
Value Stage: Final
Description: Consumer Group Buying operates as a service provider in the retail sector, facilitating collective purchasing among consumers to secure discounts from businesses. The industry connects consumers with suppliers, negotiating prices based on group commitments.

Upstream Industries

Downstream Industries

Primary Activities

Operations: Core processes involve creating and managing group buying campaigns, which include identifying products or services, negotiating prices with suppliers, and facilitating consumer commitments. Quality management practices ensure that the deals offered meet consumer expectations and that the suppliers deliver on their promises. Industry-standard procedures include regular communication with participants to keep them informed about campaign progress and fulfillment timelines.

Marketing & Sales: Marketing strategies focus on digital channels, including social media and email marketing, to reach potential group buyers. Customer relationship practices involve engaging with consumers through feedback and support, ensuring they feel valued and informed. Value communication methods highlight the savings and benefits of participating in group buying, while sales processes typically involve clear calls to action that encourage immediate participation in campaigns.

Support Activities

Infrastructure: Management systems include customer relationship management (CRM) tools that track consumer interactions and preferences, enabling personalized marketing efforts. Organizational structures often consist of small teams focused on marketing, operations, and customer service, allowing for agile responses to market demands. Planning systems are essential for scheduling campaigns and managing timelines effectively.

Human Resource Management: Workforce requirements include marketing specialists and customer service representatives who understand consumer needs and preferences. Training and development approaches may involve workshops on digital marketing and customer engagement strategies, ensuring staff are equipped with the necessary skills to support group buying initiatives.

Technology Development: Key technologies include online platforms that facilitate group buying transactions, including mobile apps and websites. Innovation practices focus on enhancing user experience through improved interface design and functionality. Industry-standard systems often involve data analytics to monitor campaign performance and consumer behavior, allowing for continuous improvement.

Procurement: Sourcing strategies involve establishing partnerships with suppliers who are willing to offer discounts for bulk purchases. Supplier relationship management is crucial for maintaining strong ties with businesses, ensuring they meet quality and delivery expectations, while purchasing practices emphasize negotiating favorable terms for group buying deals.

Value Chain Efficiency

Process Efficiency: Operational effectiveness is measured through metrics such as participation rates in campaigns and the average savings achieved by consumers. Common efficiency measures include tracking the time taken from campaign launch to fulfillment, ensuring timely delivery of products and services to participants. Industry benchmarks are established based on successful campaigns and consumer satisfaction ratings.

Integration Efficiency: Coordination methods involve seamless communication between marketing, operations, and customer service teams to ensure alignment on campaign goals and consumer needs. Communication systems often include project management tools that facilitate collaboration and real-time updates on campaign status.

Resource Utilization: Resource management practices focus on optimizing marketing budgets and leveraging digital channels for maximum reach. Optimization approaches may involve analyzing consumer data to tailor campaigns effectively, ensuring that resources are allocated to the most promising opportunities, adhering to industry standards for efficiency.

Value Chain Summary

Key Value Drivers: Primary sources of value creation include the ability to negotiate significant discounts for consumers and the effective management of group buying campaigns. Critical success factors involve building a robust consumer base and maintaining strong supplier relationships to ensure quality offerings.

Competitive Position: Sources of competitive advantage include the platform's ability to attract a large number of participants quickly and negotiate favorable terms with suppliers. Industry positioning is influenced by the platform's reputation for delivering value and the variety of products and services offered, impacting market dynamics.

Challenges & Opportunities: Current industry challenges include competition from traditional retail channels and the need to continuously engage consumers in a digital landscape. Future trends may involve expanding into new markets or product categories, presenting opportunities for growth and innovation in the consumer group buying space.

A focused SWOT analysis that examines the strengths, weaknesses, opportunities, and threats facing the Consumer Group Buying industry within the US market. This section provides insights into current conditions, strategic interactions, and future growth potential.

Strengths

Industry Infrastructure and Resources: The industry benefits from a well-developed infrastructure that includes online platforms and communication networks facilitating group purchases. This strong infrastructure supports efficient operations and enhances the ability to connect consumers with businesses, allowing for streamlined transactions and improved customer experiences.

Technological Capabilities: Technological advancements in digital platforms and mobile applications provide significant advantages for consumer group buying. The industry is characterized by a strong level of innovation, with companies utilizing data analytics and algorithms to optimize pricing and enhance user engagement, ensuring competitiveness in the market.

Market Position: The industry holds a moderate position in the broader e-commerce sector, with a growing market share as consumers increasingly seek discounts and deals. Brand recognition and consumer trust contribute to its competitive strength, although there is ongoing pressure from traditional retail and other online discount platforms.

Financial Health: Financial performance across the industry is generally strong, with many platforms reporting healthy revenue growth driven by increased consumer participation. The financial health is supported by a growing trend of collective purchasing, although fluctuations in consumer spending can impact profitability.

Supply Chain Advantages: The industry enjoys robust supply chain networks that facilitate efficient collaboration between consumers and businesses. Strong relationships with suppliers and service providers enhance operational efficiency, allowing for timely delivery of products and services to consumers, which is crucial for maintaining customer satisfaction.

Workforce Expertise: The labor force in this industry is skilled in digital marketing, customer service, and data analysis. This expertise contributes to high operational standards and effective consumer engagement strategies, although there is a need for ongoing training to keep pace with technological advancements.

Weaknesses

Structural Inefficiencies: Some platforms face structural inefficiencies due to outdated technology or inadequate user interfaces, leading to increased operational costs and customer dissatisfaction. These inefficiencies can hinder competitiveness, particularly when compared to more modernized operations.

Cost Structures: The industry grapples with rising costs associated with technology maintenance, marketing, and customer acquisition. These cost pressures can squeeze profit margins, necessitating careful management of pricing strategies and operational efficiencies to remain competitive.

Technology Gaps: While some platforms are technologically advanced, others lag in adopting new features and functionalities. This gap can result in lower user engagement and higher operational costs, impacting overall competitiveness in the market.

Resource Limitations: The industry is vulnerable to fluctuations in the availability of promotional offers and partnerships with businesses. These resource limitations can disrupt service offerings and impact consumer satisfaction.

Regulatory Compliance Issues: Navigating the complex landscape of consumer protection regulations poses challenges for many platforms. Compliance costs can be significant, and failure to meet regulatory standards can lead to penalties and reputational damage.

Market Access Barriers: Entering new markets can be challenging due to established competition and regulatory hurdles. Platforms may face difficulties in gaining user trust or meeting local regulations, limiting growth opportunities.

Opportunities

Market Growth Potential: There is significant potential for market growth driven by increasing consumer demand for discounts and collective purchasing. The trend towards online shopping and social media engagement presents opportunities for platforms to expand their offerings and capture new market segments.

Emerging Technologies: Advancements in artificial intelligence and machine learning offer opportunities for enhancing user experience and optimizing group buying processes. These technologies can lead to increased efficiency and improved customer satisfaction.

Economic Trends: Favorable economic conditions, including rising disposable incomes and a focus on savings, support growth in the consumer group buying market. As consumers prioritize value for money, demand for group buying platforms is expected to rise.

Regulatory Changes: Potential regulatory changes aimed at promoting fair trading practices could benefit the industry. Platforms that adapt to these changes by ensuring transparency and consumer protection may gain a competitive edge.

Consumer Behavior Shifts: Shifts in consumer preferences towards collaborative purchasing and value-driven shopping create opportunities for growth. Platforms that align their offerings with these trends can attract a broader customer base and enhance brand loyalty.

Threats

Competitive Pressures: Intense competition from both traditional retailers and other online discount platforms poses a significant threat to market share. Companies must continuously innovate and differentiate their services to maintain a competitive edge in a crowded marketplace.

Economic Uncertainties: Economic fluctuations, including inflation and changes in consumer spending habits, can impact demand for group buying services. Companies must remain agile to adapt to these uncertainties and mitigate potential impacts on user engagement.

Regulatory Challenges: The potential for stricter regulations regarding online commerce and consumer protection can pose challenges for the industry. Platforms must invest in compliance measures to avoid penalties and ensure consumer trust.

Technological Disruption: Emerging technologies in alternative purchasing models and social commerce could disrupt the market for consumer group buying. Companies need to monitor these trends closely and innovate to stay relevant.

Environmental Concerns: Increasing scrutiny on environmental sustainability practices poses challenges for the industry. Platforms must adopt sustainable practices to meet consumer expectations and regulatory requirements.

SWOT Summary

Strategic Position: The industry currently enjoys a moderate market position, bolstered by increasing consumer interest in collective purchasing. However, challenges such as rising competition and regulatory compliance necessitate strategic innovation and adaptation to maintain growth. The future trajectory appears promising, with opportunities for expansion into new markets and service offerings, provided that companies can navigate the complexities of consumer trust and technological advancements.

Key Interactions

Growth Potential: The growth prospects for the industry are robust, driven by increasing consumer demand for discounts and collective purchasing. Key growth drivers include the rising popularity of online shopping, advancements in technology, and favorable economic conditions. Market expansion opportunities exist in both domestic and international markets, particularly as consumers seek out value-driven purchasing options. However, challenges such as regulatory compliance and competitive pressures must be addressed to fully realize this potential. The timeline for growth realization is projected over the next five to ten years, contingent on successful adaptation to market trends and consumer preferences.

Risk Assessment: The overall risk level for the industry is moderate, with key risk factors including economic uncertainties, competitive pressures, and regulatory challenges. Industry players must be vigilant in monitoring external threats, such as changes in consumer behavior and technological advancements. Effective risk management strategies, including diversification of service offerings and investment in technology, can mitigate potential impacts. Long-term risk management approaches should focus on sustainability and adaptability to changing market conditions. The timeline for risk evolution is ongoing, necessitating proactive measures to safeguard against emerging threats.

Strategic Recommendations

An exploration of how geographic and site-specific factors impact the operations of the Consumer Group Buying industry in the US, focusing on location, topography, climate, vegetation, zoning, infrastructure, and cultural context.

Location: Operations in urban areas with high population density, such as New York City and Los Angeles, thrive due to the large consumer base and accessibility to diverse products and services. These locations facilitate effective marketing and engagement strategies, allowing platforms to connect with consumers easily. Conversely, rural areas may struggle due to lower population density, limiting the number of potential participants in group buying deals, which can hinder the viability of such operations.

Topography: The industry benefits from flat, accessible urban landscapes that support the establishment of offices and service centers. In hilly or mountainous regions, logistical challenges may arise in reaching consumers and delivering products, potentially increasing operational costs. Urban environments typically provide better infrastructure for internet connectivity and communication, which are crucial for the online platforms that facilitate group buying.

Climate: Climate conditions have minimal direct impact on operations, but seasonal variations can influence consumer purchasing behavior. For instance, during holiday seasons, demand for certain products may spike, necessitating adaptive marketing strategies. Additionally, extreme weather events can disrupt logistics and delivery services, affecting the timely execution of group buying deals and necessitating contingency planning for operations.

Vegetation: Vegetation impacts are generally minimal, but urban areas may require compliance with local landscaping regulations, particularly for office spaces. The presence of green spaces can enhance community engagement and attract consumers to local group buying events. However, in areas with strict environmental regulations, companies may need to consider vegetation management practices to align with compliance requirements.

Zoning and Land Use: Zoning regulations in urban areas typically support commercial activities, allowing for the establishment of offices and service centers necessary for consumer group buying operations. However, specific permits may be required for promotional events or large gatherings. Variations in land use regulations across different municipalities can affect how and where these operations can be conducted, necessitating careful navigation of local laws.

Infrastructure: Robust internet infrastructure is critical for the success of consumer group buying platforms, as they rely heavily on online engagement and transactions. Additionally, transportation infrastructure must support efficient delivery systems to fulfill group purchases. Access to utilities such as electricity and water is essential for office operations, while communication systems must be reliable to maintain customer service and support.

Cultural and Historical: Consumer group buying operations often find acceptance in communities that value cost savings and collective purchasing power. Historical trends in consumer behavior, particularly during economic downturns, have shown increased interest in group buying as a means to save money. Community engagement initiatives can enhance acceptance and foster trust, particularly in areas where consumers may be skeptical of new purchasing models.

A detailed overview of the Consumer Group Buying industry’s market dynamics, competitive landscape, and operational conditions, highlighting the unique factors influencing its day-to-day activities.

Market Overview

Market Size: Medium

Description: This industry facilitates collective purchasing by connecting consumers with businesses to negotiate discounts on goods and services. It operates through online platforms where consumers commit to buy if a minimum number of participants join, creating a group buying effect.

Market Stage: Growth. The industry is experiencing growth as more consumers seek cost-effective purchasing options, driven by economic factors and the increasing popularity of online shopping platforms.

Geographic Distribution: National. Operations are distributed across the United States, with a concentration in urban areas where consumers are more likely to engage in online group buying activities.

Characteristics

Market Structure

Market Concentration: Fragmented. The market is characterized by a variety of platforms, ranging from large established companies to small niche players, each targeting different consumer segments and product categories.

Segments

Distribution Channels

Success Factors

Demand Analysis

Demand Drivers

Competitive Landscape

Entry Barriers

Business Models

Operating Environment