This acquisition, which was for a reported $260 million, is an effort to expand in the Asian market.
Groupon has just announced its acquisition of Ticket Monster, along with its Q3 results for 2013, as a part of the reveal for its latest strategy for mobile commerce growth, particularly within the Asian marketplace.
They have purchased the company with its specialty in both local and travel offers in this region.
The purchase was for $260 million in both cash and stock. This helps Groupon to obtain a more solid mobile commerce foothold on the local and travel market in the Asian region. The Korea based online company also specializes in product offers. Ticket Monster was first launched in 2010 and its deal with Groupon is expected to close in the first half of next year.
At the moment, Ticket Monster Is owned by LivingSocial, but this mobile commerce deal will change that.
Ticket Monster has experienced year on year billings growth that has been steady and consistent, as its annual figures have come in at $800 million. It was the mobile commerce success, however, that caught the eye of Groupon and that drew it for purchase. The reason is that more than half of the Asian company’s purchases originate from smartphones or tablets. The company currently boasts over 1,000 employees and has over 4 million active customers.
This mobile commerce deal has arrived just as the Q3 financial data was released by Groupon. Its daily deals service during the period that ended on September 30 raked in a record nine million downloads of its app, bringing its overall total to 60 million. This has also helped to contribute to the fact that over half of the sales made in North America are completed by way of smartphones and tablets.
Moreover, mobile commerce at Groupon makes up 40 percent of its total global processed sales. Its active consumers showed a year over year rise by 10 percent, reaching 43.5 million, total. Clearly, this channel has become exceptionally important to the company and it is aiming at progressing in that direction with this latest acquisition.
Asian markets show promise for mobile commerce
International market research firm yStats has released a new report concerning electronic and mobile commerce in Asia. Asian markets have become very attractive in terms of mobile commerce due to the rising adoption of smartphones and tablets. Consumers are becoming quite reliant on these devices and are showing enthusiasm when it comes to shopping online and making purchases directly from their devices. The report, titled “Asia B2C E-Commerce Report 2013,” aims to shed light on the evolution of commerce throughout Asia.
Internet access helps boost online sales
The report notes that Internet use in countries like Japan, China, and South Korea continues to rise at a rapid rate. As more consumers gain access to the Internet, they begin to shop online more frequently. The expansion of mobile networks is also giving consumers access to the Internet from their smartphones and tablets, exposing them to a wide range of mobile commerce services. Consumers in these countries have been showing favor for mobile shopping over more traditional forms of shopping. The report notes, however, that countries like Laos, Indonesia, Nepal, and India are falling behind when it comes to Internet access. While these countries can be considered valuable markets, the potential of mobile commerce in these countries is somewhat limited.
Japan and China considered prominent markets for mobile commerce
Japan is currently considered one of the most promising markets when it comes to mobile commerce. Tech-savvy consumers often use their mobile devices for just about everything in Japan and it is becoming increasingly common for retailers to focus exclusively on those with mobile devices. China is also showing strong growth on the mobile commerce front as more people gain access to smartphones and tablets. In terms of e-commerce, China is expected to see a 30% increase in online sales by 2016.
Online sales in India account for less than 1% of retail sales
A rise in Internet use is often tied to an increase in online sales. In countries where Internet access can still be considered a luxury, online sales are quite low. In India, for example, online sales account for less than 1% of all retail sales. The country is still considered a promising market for mobile commerce, however, due to the fact that mobile technology is becoming much more common among consumers throughout the country.
