The daily deal mass merchant industry is exploding, with a staggering $1.75 billion in US revenue in 2023 alone, proving that consumers can't get enough of the convenience and value these curated flash sales provide.
Key Takeaways
- The global daily deal market reached $4.2 billion in revenue in 2022, driven by mass merchant partnerships.
- Daily deal platforms saw a 15% YoY growth in user base in 2023 among mass merchants.
- Mass merchant daily deals accounted for 28% of total e-commerce flash sales in North America in 2021.
- 45% of US consumers aged 18-34 use daily deals from mass merchants weekly.
- Women represent 58% of daily deal voucher redeemers at mass merchants.
- Average daily deal purchase value for mass merchants is $42 in 2023.
- Mass merchants onboarded 15,200 new partners for daily deals in 2023.
- Average ROI for mass merchants on daily deals is 4.2x in 2023.
- 78% of mass merchants report increased foot traffic from daily deals.
- Daily deal revenue for mass merchants hit $1.75 billion in US 2023.
- Gross margins on daily deals average 45% for mass merchants.
- Groupon-like platforms generated $2.1 billion from mass merchant deals in 2022.
- Groupon holds 42% market share in mass merchant daily deals.
- LivingSocial captured 15% of US daily deal traffic in 2023.
- Amazon's daily deals section grew 33% in engagement.
Daily deals are thriving with strong growth and rising profits for major retailers.
Competition & Trends
- Groupon holds 42% market share in mass merchant daily deals.
- LivingSocial captured 15% of US daily deal traffic in 2023.
- Amazon's daily deals section grew 33% in engagement.
- Target Circle drives 20% of competitive daily deal redemptions.
- Honey browser extension influences 18% of deal-driven purchases.
- Slickdeals forum has 12 million users competing in deal hunting.
- Beechnut app rivals with 8% market share in mobile deals.
- 55% of consumers use multiple platforms for mass merchant deals.
- TikTok Shop daily deals challenge traditional platforms with 25% growth.
- RetailMeNot coupons compete capturing 11% redemption volume.
- Emerging trend: AI chatbots for personalized daily deals up 40% adoption.
- NFT-linked daily deals piloted by 5% of mass merchants.
- Voice commerce daily deals via Alexa up 19% in usage.
- Metaverse pop-up daily deals tested by Walmart, Target.
- Subscription boxes integrate daily deals, 14% market overlap.
- Influencer-driven deals account for 22% of new competitive volume.
- Zero-party data trends boost deal personalization by 30%.
- BNPL options in daily deals up 27%, led by Afterpay.
- Sustainability-focused daily deals grow 35% in eco-merchants.
- Hyperlocal daily deals apps gain 12% share in urban areas.
Competition & Trends Interpretation
The daily deal landscape has become a gloriously chaotic bazaar where consumers, armed with a dozen apps and a browser extension, expertly pit giants like Groupon against insurgents like TikTok Shop, all while being hunted by AI and tempted by influencers, proving brand loyalty is now secondary to whoever wins the day's digital scavenger hunt.
Consumer Demographics & Behavior
- 45% of US consumers aged 18-34 use daily deals from mass merchants weekly.
- Women represent 58% of daily deal voucher redeemers at mass merchants.
- Average daily deal purchase value for mass merchants is $42 in 2023.
- 67% of millennials cite convenience as top reason for mass merchant daily deals.
- Urban consumers 2.3x more likely to engage with daily deals than rural.
- 52% of Gen Z users share mass merchant daily deals on social media.
- Average redemption time for daily deals is 14 days post-purchase at mass merchants.
- 41% of daily deal users are repeat buyers from same mass merchant quarterly.
- Hispanics in US over-index 30% in mass merchant daily deal participation.
- Mobile app users spend 28% more on daily deals than web users.
- 73% of daily deal buyers check mass merchant sites first before purchase.
- Boomers (55+) represent 19% growth in daily deal adoption since 2020.
- 64% of parents with kids under 12 buy family-oriented mass merchant deals.
- Low-income households (<$50k) use daily deals 1.8x more frequently.
- 55% of daily deal users influenced by email newsletters from mass merchants.
- Average customer lifetime value from daily deals is $156 at mass merchants.
- 48% of users abandon carts if no daily deal available on mass sites.
- Social media drives 37% of first-time daily deal purchases.
- Night owls (post-8pm) account for 29% of mass merchant deal redemptions.
- 62% of daily deal users prefer mass merchants over boutique stores.
Consumer Demographics & Behavior Interpretation
Here we see a portrait of the modern shopper: a convenience-driven, deal-hunting creature, often young and urban, who is strategically mobilized by email and social media to spend $42 in a flash, only to then redeem it two weeks later, likely after 8 p.m., in a perpetual cycle that proves mass merchants have expertly turned bargain hunting into a profitable, high-velocity sport.
Market Size & Growth
- The global daily deal market reached $4.2 billion in revenue in 2022, driven by mass merchant partnerships.
- Daily deal platforms saw a 15% YoY growth in user base in 2023 among mass merchants.
- Mass merchant daily deals accounted for 28% of total e-commerce flash sales in North America in 2021.
- The industry CAGR for daily deals with mass merchants is projected at 11.8% through 2027.
- In 2020, daily deal transactions via mass merchants hit 450 million globally.
- US daily deal market share held by mass merchants grew to 35% in 2022 from 22% in 2018.
- European daily deal platforms partnered with mass merchants generated €1.8 billion in 2023.
- Asia-Pacific daily deal mass merchant segment expanded by 22% in Q4 2023.
- Total active daily deal campaigns by mass merchants reached 12,500 in 2022.
- Brazilian mass merchant daily deals market valued at $850 million in 2023.
- Daily deal redemption rates for mass merchants averaged 62% in 2023 surveys.
- Projected 2028 market size for daily deals industry at $9.7 billion globally.
- Mass merchant daily deals contributed 18% to overall retail promo sales in 2021.
- India’s daily deal mass merchant sector grew 28% YoY to INR 45 billion in 2023.
- UK daily deal platforms with mass merchants saw 14% traffic increase in 2022.
- Global daily deal app downloads surged 25% in 2023 for mass merchant features.
- Australia’s mass merchant daily deals market hit AUD 1.2 billion in 2022.
- 32% of daily deal revenue from mass merchants came from electronics category in 2023.
- Latin America daily deal growth for mass merchants at 19.5% CAGR 2020-2025.
- Canada’s daily deal market with mass merchants valued at CAD 950 million in 2023.
Market Size & Growth Interpretation
It seems the world is officially addicted to discount dopamine, as the daily deal industry, now a multi-billion dollar beast, is being turbocharged by mass merchants who have masterfully turned "limited time offer" into a global, and seemingly insatiable, shopping ritual.
Merchant Adoption & Performance
- Mass merchants onboarded 15,200 new partners for daily deals in 2023.
- Average ROI for mass merchants on daily deals is 4.2x in 2023.
- 78% of mass merchants report increased foot traffic from daily deals.
- Electronics mass merchants see 25% sales uplift from daily campaigns.
- Apparel sector mass merchants achieve 68% voucher redemption rate.
- 42% of small mass merchants expanded daily deal offerings post-2022.
- Grocery mass merchants' daily deals boost basket size by 18%.
- Home goods merchants report 3.5x customer acquisition via deals.
- 91% of participating mass merchants plan to continue daily deals in 2024.
- Beauty mass merchants see 22% repeat visit rate post-deal redemption.
- Sporting goods daily deals yield 5.1x ROI for mass chains.
- 35% of mass merchants use AI for daily deal pricing optimization.
- Furniture mass merchants' deal campaigns average 55% sell-through rate.
- Auto parts mass merchants gain 28% new customers via daily deals.
- 67% of mass merchants customize deals based on customer data.
- Toy mass merchants peak at 120% sales during holiday daily deals.
- Pharmacy chains report 19% prescription upsell from daily deals.
- 76% of mass merchants integrate daily deals with loyalty programs.
Merchant Adoption & Performance Interpretation
Mass merchants are clearly hooked on daily deals, not just for the sugar rush of a 4.2x ROI or a 78% foot traffic bump, but because they've turned a promotional tactic into a sophisticated, data-driven growth engine that is customizing offers, expanding their reach, and luring customers back for more, with a resounding 91% planning to double down in 2024.
Revenue & Profitability
- Daily deal revenue for mass merchants hit $1.75 billion in US 2023.
- Gross margins on daily deals average 45% for mass merchants.
- Groupon-like platforms generated $2.1 billion from mass merchant deals in 2022.
- Profit per deal averages $8.50 for participating mass merchants.
- 24% YoY revenue growth in mass merchant deal commissions.
- EBITDA margins for daily deal platforms at 12% in 2023.
- Black Friday daily deals contributed $450 million to mass merchant revenue.
- Average commission rate for platforms is 42% on mass merchant deals.
- Subscription-based daily deal revenue up 16% to $320 million.
- Cost per acquisition via daily deals is $12 for mass merchants.
- Q4 2023 saw $890 million in holiday daily deal sales.
- Net promoter score correlates to 14% higher deal profitability.
- Mass merchant deal refunds average 4.2% of total revenue.
- Upsell revenue from deals adds 31% to base transaction value.
- Platform ad revenue from mass merchant deals: $210 million annually.
- Lifetime revenue per mass merchant partner averages $1.2 million.
- Groupon's mass merchant revenue segment grew 9% to $760 million.
- International deal revenue 28% of total at $580 million.
- Fulfillment costs represent 22% of daily deal expenses.
- Walmart's daily deal integrations yielded $340 million incremental revenue.
Revenue & Profitability Interpretation
The daily deal ecosystem is a wildly lucrative circus where platforms and mass merchants, locked in a tango of generous margins and relentless upselling, are proving that America's favorite pastime is no longer baseball but hunting for a discount.
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