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November 20, 2010

Twangoo – Daily Deals in South Africa

twangoo - Featured on StartUpLift

Collective Buying Power. Get it. Share it. Enjoy it.

Target Audience: Deal-seekers in South African cities.

Twangoo is a members only e-commerce platform, which combines the power of social media and collective buying to offer exclusive deals on experiences to upwardly mobile consumers in major cities across South Africa. Twangoo uses the power of group buying to bring online customers into off-line businesses.

Twangoo members have access to exclusive deals with the best restaurants, spas, entertainment, retail environments and activities in their city. These exceptional deals, which are discounted by up to 90%, are communicated daily to Twangoo members.

However, like Groupon, the deal is only triggered once a set number of interested members sign up. The onus is on Twangoo members to share these unique and provocative offers via their networks via email, SMS, telephone, and social media such as Twitter and Facebook, thus ensuring these exclusive offers can be redeemed. The limited nature of the offer helps to ensure the offer is spread virally, and at a rapid rate. The benefit to the vendor, besides brand awareness and an immediate influx of new customers, is that they can set the minimum number of participants for the deal to be secured so that it is financially viable for them.

Consumers have always been attracted by good deals. Research shows that in a supermarket customers would rather buy a more expensive product, at a substantial discount, than a cheaper product priced at value, even if the expensive item costs more than the cheaper item after the discount.

Twangoo uses the power of its national consumer network to negotiate competitive offers (40% – 90% discount) with aspirational brands and establishments. Vendors do not pay to advertise on Twangoo’s innovative e-commerce platform, but pay a commission on all deals sold to Twangoo consumers. Twangoo only offers competitive value added deals on high-end aspirational brands.

What do you think about Twangoo? Please share your thoughts.