Hong Kong Daily Deals Scene Heats Up

Hong Kong's group buying scene is set to heat up in 2012 as media companies go head to head with Groupon to launch its own daily deals site. South China Morning Post, the local English daily newspaper is apparently scheduled to go live next month, followed by two other media companies.

Hong Kong's consumer group buying space is estimated to be worth more than $60 million per year. Currently, more than 30 companies offer daily deals in the city with Yahoo (http://www.clickz.asia/3529/yahoo_unveils_deals_service_in_hong_kong) and Groupon leading the sector in the market.

Jonathan Marchbank, CEO at Dealised, a white label group buying startup has confirmed that South China Morning Post (SCMP) will be using its group buying technology platform to offer daily deals on a dedicated site called Redeeme. He also said two other media firms, which he did not identify, would be using its platform to roll out daily deals.

This underscores Dealised's acquisition of Hong Kong based group buying platform Lokaly Network and consumer deals site ValuUp from co-founder Doug Aitken through an equity deal.

In a phone interview with ClickZ.asia, Marchbank said it has acquired Lokaly and ValuUp because of a good sales force and local knowledge that will allow the company to grow organically in the Hong Kong market.

Current daily deals sites offer low value food and beverage opportunities but with a media company like the SCMP providing deals through an identifiable readership and demographic, it will attract traditional retail, F&B, hospitality brands, and higher end products to participate, he explained.

Read the whole story on ClickZ.Asia.