Why buy a new dishwasher on my own when I could buy one with fifty other people, or a hundred or a thousand? Or that new Range Rover I've been thinking about buying - why not find fifty other people who are in the market for a new Range Rover and use your collective buying power? Group buying is the next new trend in retail and one which is going to fundamentally shift the balance of power between the buyer and seller. Although group buying has been talked about since online retail took off in the late 90's and many academic papers predicted its emergence, it has come to very little; however, it would seem its time has now come. Why? Because people have become familiar with grouping together through social networks and the idea of grouping together to buy something is an easy jump to make.
Tuángòu (pronounced "twangoo"), which loosely translates as team buying or group buying already exists in China, where there is a long cultural traditional of haggling over price. And now it seems to be spreading with variations on group buying springing up around the globe.
One company which seems to be gaining considerable publicity is Groupon.com . It offers a daily deal in various cities throughout the US and Canada but the deal becomes valid only if a specified number of people commit to the purchase, after which you get emailed your discount coupon or 'groupon'. Groups benefit from discounted prices and businesses receive a guaranteed number of customers. I think this one is going to be huge.
So watch this group buying space as it explodes over the coming months. I predict that by this time next year, you won't even countenance the idea of buying any consumer durable on your own. After all, why would you?
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