How much revenue does group buying market in Malaysia generate? Dealshelve as Malaysia's most comprehensive group buying deals aggregator has compiled some interesting data about group buying market in Malaysia for August 2011.
Disclaimer: The statistics is purely based on data aggregated from group buying sites and we cannot be sure if any of the sites manipulated the number of sales in their deal pages.
|Rank||Site||Revenue||Number of sales||Revenue per sale||Number of deals||Lowest price||Highest price||Average price|
* Groupon Malaysia's statistics comes from groupsmore.com instead of groupon.my.
In terms of revenue, the August 2011 group buying market in Malaysia is clearly led by Groupon, followed by Everyday and MyDeal in quite a distance behind. The three group buying giants are in the leading pack which recorded more than RM1 million revenue in August.
The second pack of group buying sites consists of MilkADeal, Jackcow, Superdeals, ILoveDiscounts, Dealmates and EziVoucher, each generating around RM200k-400k revenue. They are followed by several medium-to-small players each with revenue ranging from few thousands to some with slightly more than RM100k.
In May 2011, Everyday was acquired by South Korea's Ticket Monster, and only recently Ticket Monster itself was acquired by Living Social, the number two giant in group buying industry after Groupon. This may suggest the 1-2 competition between Groupon and Living Social is now being replicated in Malaysia.
Interestingly, MyDeal, which was reported to hit RM2 million monthly revenue, managed to record only RM1.2 million revenue in August. Could it be due to festive period where people spend less time online looking for deals? Or this is their low month?
From the above figures, and the figures from other unpublished smaller sites, we estimate the revenue of the group buying market in Malaysia is in excess of RM100 million this year, which is an equivalent of RM9 million per month.
Number of sales
Everyday wins in terms of the number of deals sold, probably due to the lower price on the deals they offer. Consumer tends to buy deals under RM20 and buy multiple of them to share with family and friends. The average selling price and revenue per sale statistics tells this story well.
We also note that EziVoucher is a Penang-only deals site with quite an impressive number of sales. Most of the other sites are either covering multiple cities or Klang Valley only.
Revenue per sale and selling price
The top three sites for the highest revenue per sale are Groupon, MilkADeal and Dealmates while Everyday and EziVoucher are at the bottom of the chart. From business perspective, a high revenue per sale accompanied by a good number of sales might translate to profitability. But to normal consumers, if you like to find deals that costs less than RM20, you will most likely get them from Everyday or EziVoucher.
Group buying market in Malaysia is growing rapidly with many new startups jumping into the bandwagon. It is worth noting that it is not always the case that only the top sites get acquired or funding from investors. Sites in the second pack like Dealmates has also attracted investment. Everyone is eyeing this lucrative piece of market, but who will prevail? Joel Neoh's prediction that only three can survive in this market does not seem to realize at least in the near future.
How do we get the statistics
The statistics is compiled based on the deals aggregated by Dealshelve that ended in the month of August. The statistics:
• includes deals started in July and ended in August
• excludes deals started in July and ended in September
• excludes ongoing deals
The revenue is calculated by multiplying number of deals sold with the selling price. Note that the statistics might have included deals that did not reach its minimum quantity where the payment needs to be returned to the buyers. For a few sites that we do not aggregate in a complete manner due to technical issue, we collect data from the site's "Past Deals" pages and manually compile them. We might missed out or have duplication of some deals but the error rate is estimated to be no more than 10% of the figures published.
If you are the owner of the above-mentioned sites and found that the statistics presented is inaccurate, do drop us an email at email@example.com. Or if you are just interested to know more about this statistics, do leave a comment or drop us an email. Visit us at http://dealshelve.com.