Infinite Path

The latest craze for both online and offline retailers definitely seems to be the daily deals phenomenon which is taking off around the globe.

Websites such as Groupon, LivingSocial and even Travelzoo have been getting in on the act, promoting local businesses and driving customers to their venues to sample anything from a falconry day to a three-course meal with champagne.

And it seems these are proving so popular that another established website has decided to jump on the bandwagon and see whether it can succeed where plenty of others have failed.

Gumtree is the latest site to launch a daily deals service for its customers but it claims its offering is different – consumers can use social media to communicate what they want to see.

Customers can give their view on the daily deals through its Facebook page, so they get exactly what they want out of the service.

Hamish Stone, head of marketing at Gumtree, explained: “Consumers are becoming increasingly savvy to the offers that are available, both on the high street and online, so it is vital to offer a unique and different platform in this competitive space.”

Daily deals have proved to be extremely popular in recent months, with local retailers reaping the benefits of the offering in post-recession Britain. However, only time will tell as to whether the long-term impact of the deals – getting repeat custom – is all it’s cracked up to be.

At the moment, local businesses pay a fee to the deals provider before they can advertise and promote their special offer. The deal, therefore, needs to be such that they still make a significant return after paying money out initially. With the voucher culture becoming ever-more prominent in the UK, it’s unclear as to whether people will ever be willing to pay full price for things again!