Analysis says Groupon changes to fruition

Source: Internet
Author: User
Keywords Change Groupon Jedi.
Tags analysis analysts change company group buying market mobile operational efficiency

Absrtact: December 13 News, a few days ago, some analysts pointed out that although Groupon's growth in recent quarters has shown a steady trend, but its share price in this year has fallen by nearly 36%, this is confusing. In the third quarter, the company's 27% per cent year-on-year revenue growth seems to be investing

The December 13 News, a few days ago, some analysts pointed out that although Groupon's growth in recent quarters has shown a steady trend, but its share price has fallen by nearly 36% this year, this is confusing. In the third quarter, the company's 27% per cent year-on-year revenue growth seems to have brought hope to investors.

Previously, Groupon had publicly stated that it had three key indicators this year: first, to restore revenue growth in North America and other overseas markets, and second, to increase the company's operational efficiency and gross profit margins in physical transactions, and third, to improve the stability of international market operations and reduce market losses.

In concrete terms, Groupon's overall growth accelerated to 39% per cent in the third quarter, with revenues reaching $1.86 billion trillion. Among them, the North American market revenue increased by 16%, to 774 million U.S. dollars, tourism services, physical transactions, local life, these three business sectors have maintained a stable double-digit growth. In Asia, earnings growth was also evident, thanks to the acquisition of South Korea's largest group buying website ticket monster,groupon.

The reason, analysts say, is that Groupon has made a number of adjustments to its operations strategy this year, especially in North America. Groupon, for example, has increased its share of physical transactions and moved large warehouses to Kentucky State's proprietary distribution centers to boost operational efficiency. In terms of payments, it works with Apple Pay to try the latest payment channels to improve the consumer's shopping experience.

In addition, one months ago, Groupon launched its own mobile app snap. The application can provide users with a specific list of items, the user only within a specified period of purchase of these goods, photographed and uploaded to buy a small ticket, you can get cash return.

It is understood that Groupon's number of users has reached 250 million in 2013, and more than 53 million users are spending it through Groupon mobile apps. Up to now, its mobile applications have been downloaded 100 million people, the number of users can choose to buy more than 300,000 items.

According to foreign media reports, Groupon has a daily trading volume of nearly 300,000 per day in the group buying business, with more than 120,000 deals coming from North America. At the same time, through self-help programs, Groupon can add 700 new businesses a week. At this rate, annual revenue growth will be more than $20 million trillion.

In response, analysts said the data gave Groupon a certain amount of clout in front of investors, perhaps after a boom and bust, and Groupon's changes could bring back the effects of a Jedi counterattack.

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