Trends Report

European eBusiness Executives Take A Cautious Approach To Daily Deals

Brand And Margin Protection Inhibit Adoption, But Other Approaches Are Emerging

January 18th, 2012
Martin Gill, VP, Research Director
Martin Gill VP, Research Director
With contributors:
Sucharita Kodali , Patti Freeman Evans , Amelia Martland , Myriam Da Costa

Summary

Skepticism is the watchword across Europe as eBusiness executives consider engaging with daily deals sites such as Groupon and Living Social. Concerns about brand damage and sales cannibalization are paramount among eBusiness executives' fears. Many of them are looking into alternate approaches to manage overstock or end-of-season lines — operating a permanent sale section of their website or managing their own flash sales to attract new buyers to their brand. European eBusiness executives should be wary of the reach and scale of potential daily deals partners and should be conscious that daily deal use is far from a mainstream activity across Europe.

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