Another player has joined the precarious space of group-buying in SA, this time a daily deals site dedicated to sporting events, equipment and accessories.
Launched this week, www.flook.co.za is the latest in a string of e-business contenders that have jumped on the group-buying bandwagon, following the introduction of the phenomenon to SA at the beginning of 2010.
Originated by media executives Craig Ross, Nic Wides, Larry Katz and Russel Stromin, Flook is SA's first group-buying e-business that focuses exclusively on sports deals. At the helm of the team is Ross, ex-publisher of Golf Digest and sports titles at Touchline Media.
According to the team: “The Flook site offers fetching deals for sports people, players and fanatics, from discounted group-buying rates at leading golf courses, cycle shops and clothing retailers, as well as limited offers on VIP hospitality at premier sports matches.” Catering to what it calls a “vast and affluent market” of sports enthusiasts, Flook says it will slash retail prices by up to 75%.
The special interest group-buying site signals a departure from the generic restaurant and spa model employed by traditional group buying sites, says Wides. “We are dedicated to serving the South African sports community with relevant and covetable sports deals.”
Daily deal disappointments
When group buying emerged as a new kind of e-commerce in the US, a little over three years ago, a hype was ignited in the online retail world, and within the space of just two years on the local front, group buying sites in SA went from one to 40. Industry observers have noted the “hit and miss” nature of such ventures, and a number of failed sites bear witness to this.
ITWeb reported in December last year on the most recent of such failed attempts, Dealify, which closed shop after about seven months of operation. This was closely preceded by Zappon, which lasted roughly nine months, and Dealio, which treaded water for about 10 months.
However, despite its short existence and partly-crumbling player base, analysts say the group-buying concept, in itself, works and there will be a handful of e-businesses that make the grade. SA's most prolific group buying site, Groupon SA, recently passed the one-year mark and says it is set to expand its operations considerably.
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