Groupon’s New Plan to Disrupt Mobile Coupons

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Nov. 21 (Bloomberg) -- Eric Lefkofsky, co-founder & CEO at Groupon, explains the company’s new business plan as it focuses on targeting customers’ specific needs, the growth in their mobile business and how they manage the growing competition in mobile coupons. He speaks at Bloomberg's The Year Ahead: 2014 conference at the Art Institute of Chicago.

Founder of groupon.

You are talking about disruption in the marketplace today.

I think groupon is a great example of a market disruptor and you will continue to disrupt again.

You are changing their business strategy.

Walk us through the new plan.

Basically, we started off as a daily deal provider where we would send out one e-mail per day with one deal.

Our business is driven by the push e-mail strategy and overtime we realized that there were larger markets of being on the demand fulfillment side.

Instead of just trying to sell pizza to people at 7:00 in the morning when maybe they weren't hungry for pizza, we want to be selling pizza to people at 7:00 at night when they're in the mood.

We had to build this marketplace of deals that people could come to and we have made great progress.

We now have over 65,000 deals on this marketplace.

People concert for pizza or yoga or pilates or massage or whatever they want in major cities and see thousands of deals that they can pull down and buy in real time.

It is predominantly mobile.

Walk me through this.

You were actually giving deals for businesses.

Big retailers like macy's and the pizza place next door.

Are businesses predominantly local.

Our roots are local.

People are coming because they want to explore the area around them, the best restaurants, the best activities, the best leisure things.

Even big national retailers have a local presence.

When you go to a gap in your local community, it may be a national retailer, but it is local.

We have always featured big deals.

We just ran saks yesterday.

We run that from time to time to make sure we are always putting the very best deals forward.

You mentioned mobile.

50% of your business in north america is mobile.

What will it look like next year?

The growth has been tremendous.

We are now at over 60 million app downloads.

We had over 9 million app downloads last corder alone.

More than 50% of our business in north america is mobile.

It makes us one of the big e- commerce comp -- companies.

Our customers have flocked to mobile and an amazing way.

They have fallen in love with our app and using us when they are out.

Having us be the starting point of a lot of their mobile commerce activities.

It really does sound like that is in fact the future.

Let's talk about m&a. the ticket monster deal.

Anything else you might be looking at?

We have always been inquisitive.

We have bought several companies in the past.

Payment and point-of-sale and extended core offerings.

This was a big acquisition for us because it short up one of our big markets internationally.

We are in 48 countries worldwide . we have 11,000 employees.

Asia was a market that we wanted to invest in.

It has huge growth potential.

Buying one of the leaders in the korean e-commerce market and a company that has had tremendous growth in the past is going to service a cornerstone of our asian business.

So you are looking international in terms of your expansion?

We are in three main businesses.

We are in local.

We have a strong foothold in local commerce.

We also build an amazing goods business.

It is now at about a run rate -- the growth rate has been tremendous.

We have a huge travel business, our getaways businesses large.

How do you stay competitive in an environment where everybody is trying to do exactly what you are doing?

Everybody recognizes that mobile is the future.

Amazon has it steals.


How do you keep an edge?

We got asked that question before we got -- went public two years ago.

How are you possibly going to compete with google offers and facebook deals and amazon local?/ they'll launched 3-6 months before we did.

In the past two years, with all these huge companies coming into our space, we actually gained market share.

I think it is because we fill a need for merchants.

We have surveyed over 6 million of our customers and we have found that over 60% of the time the customers were spending money a local merchants where they had never been before.

Local merchants are getting what they need from us and they're coming back.

Let's talk about the holiday shopping season.

What will it look like?

You have a very interesting window into it.

What have you seen so far?

We are slightly different then taken amazon where huge percentage of their business is in the fourth quarter, they're cyclically influenced by holiday.

For a to death for us it is much smaller.

We are pretty evenly spread.

We don't tend to see influenced by the same holiday results.


Are you getting indication from some merchants?

It is still too early to tell.

We get some uptick.

It tends to be back weighted.

It is a fourth-quarter gain with the last five minutes are all that matter.

I don't have a great read.

We will have a great read in a few weeks.

We will have to wait and see.

This text has been automatically generated. It may not be 100% accurate.


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