Groupon Malaysia Essay

1594 Words7 Pages
Malaysians this year have experienced an uptrend of a new sensation, the Groupon sensation. Listed as the fastest growing company by Forbes in 2010, Groupon has been climbing the Malaysian e-commerce ladder in leaps and bounds. On the wings of the relatively new marketing business model of group-buying, Groupon Malaysia has been making itself heard and noticed. More often than not I have been invited over by my friends and colleagues to sign-up for a deal at Groupon Malaysia. A trip or a day at the spa, or the new Android tablet that was going for RM499 instead of the usual RM1260; these are but few of the many examples of what Groupon Malaysia has to offer. Some of these discount marvels will leave you astounded at the magic of group-buying. The sheer size of price cuts is enough to leave you wanting to know how this magic works. Group buying, also known as collective buying or deal commerce, offers products and services at significantly discounted prices if a minimum number of buyers purchase it. As a business model it is a simple concept where companies like Groupon Malaysia act as proxy to negotiate deals with local merchants. Upon agreeing to deliver a minimum number of customers they exact large discounts from these sellers. The merchants sustain price cuts, but are assured of a large group of customers, as well as ‘exposure’ to their business. The concept is said to have originated in China where Tuángóu or group-buying was organised between friends, neighbours or even strangers on Internet forums who were interested in buying the same item. Over the years group-buying began to take hold in the market as it evolved into an increasingly sophisticated business model. Recent years have seen group-buying websites, like Groupon Malaysia, emerge as a major player in online shopping businesses. Typically, these websites feature a deal of the day, with the
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