Marketing - Bulk deal Concept

In IIMK we had a concept of bulk deal, we used to get our laptops in bulk deal from vendor at low cost.
I see that concept grown to what we call Group Buying Sites.

Global Websites
http://www.groupon.com
http://www.crowdsavings.com/
http://livingsocial.com

Indian Websites
http://www.mydala.com/
http://www.dealsandyou.com
http://www.snapdeal.com
http://www.koovs.com/

Groupon started in Nov, 2008 and is already valued at $5 billion. The site have been mirrored in India too.

Cons

U get specific deals.
Not personalized.

Pros
Bulk Deal is the key.

I believe there r two models in retail discounting. One is Wall Mart way and other Groupon way.

Wall Mart sells because of three reasons. First Wall Mart buys in bulk, so buys at discounts, n because u have discounts, customers come. Second customer gets one stop solution. Third they have a good experience - Wall Mart experience.

In Groupon, u get discounts because you will get customers. But you don't fulfill second and third reason.

Future Potential - If you can create an online environment, where people give their order's in advance for bulk things. Those things can be collaborated across the country and can be bought from manufacturer at discount.

Value addition for Customer, you and the manufacturer. The Network that the manufacture has created takes the loss.