Niche by Niche; Daily Deal Fragmentation

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If you’re going to start a daily deal site these days, you better have a very particular area of focus if you plan on being competitive – or turning any profit at all – if you’re not going to be one of the biggest vendors in the space.

While there are numerous daily deal services available, few have ventured into serving highly specific verticals. In essence, they all provide the exact same set of features As consumers become increasingly familiar with the daily deal model, expect new daily deal sites to emerge to serve particular, temporary (if not wholly fleeting) interests.

Case in point: IdoDailyDeal, a new daily deal site focusing on weddings, has launched and is providing brides and grooms to be with deals on wedding items, services (catering for example) and even manages to provide a few wedding ideas for good (marketing) measure. The site, which is geographically focused on Texas but which has a presence in New York, LA, Chicago and Atlanta, offers visitors a directory in addition to daily deals and savings on everything from wedding portraits to wedding cupcake towers.

Groupon and LivingSocial could swiftly release a similar, more refined channel or vertical specific strategy, making short work of sites like Idodailydeal.com, but will they?

Share your thoughts below on the possible fragmentation of the daily deals market.

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