Rupu, Kenya’s first daily deals site says Nation Media Group’s recently launched Nsoko Deals is not a competition.
Nsoko Deals, launched by East Africa’s largest media house by revenue and size sells discounted goods such as mobile phones and electronics, fashion wear and kids clothing, furniture, perfumes and wines and holidays and college among others.
The site however, does not use the daily deals model but openly sells stuff at discounted prices.
Ben Maina, Chief Executive Officer, Rupu, told TechMoran, “Its a different business model from what I can see. Its still early days to be able to tell whether its “eating into our cake”.
To Rupu, Nsoko Deals, whether entering the daily deals business or remain still as it is, is a plus for them as an e-commerce player and for the whole industry.
” The more people educating the public on e-commerce the better for the industry as a whole,” he said.
Daily deals works because it excites buyers to know their is always something new in the stores than the one they bought yesterday unlike selling a bunch of goods on discount. Daily deal sites offer value for all parties, both the retailer and the buyer wins plus the deals site too. They work for local retailers by helping them generate money by selling products and services in advance.
The Nsoko model is more of an online discount store, not daily deals like Rupu and though many dai
According to reports from research firm BIA/Kelsey U.S. consumer spending on daily deals will be $5.5 billion by 2016, up from $1.8 billion in 2011, indicating that daily deals business are not closing shop yet. For firms daily deals mean sales to them, acquisition of new customers and retention of old customers.