The economic downturn is stirring consumers to leave no stone unturned when searching for deals. Online services such as Groupon and GoNabit are drawing a devoted following of shoppers who realise that using vouchers for goods and services is smart, if not cool. Alice Haine reports
When Lorraine Grigg, a mother of two, went out for a Dh195 all-inclusive dinner with some friends, she wanted to make sure she didn't pay over the odds for her meal.
So when the bill arrived, the group of eight handed over four two-for-one vouchers, cutting the cost of their meal in half and handing them to a saving of almost Dh800.
"It's a no-brainer," says Mrs Grigg, who lives in Dubai. "Why should I pay full price for something when I can buy one meal and get one free?"
The Briton, whose sons are five and nine, is one of a growing band of deal-savvy consumers who actively search out the best value.
Gone are the days when UAE residents boasted about their latest car, gadget or expensive meal out. Now the buzz word is "deals" and, whether it's two-for-ones, large discounts or even coffee mornings where women swap vouchers to ensure they have enough for the activities they enjoy, consumer culture has shifted.
"Since the recession, the market has fundamentally changed," says Monica Bradley, the managing director of Real Deal Middle East, who set up her company in 2009 on the back of the downturn. "Companies used to have a couple of sales a year, but what we've moved into is a continuous cycle of consumer incentives. Companies now realise they need to constantly motivate customers just to get them through the door."
Originally from Australia, Ms Bradley helps businesses attract customers by printing cost-saving coupons on the back of supermarket receipts. Not only do consumers pick up offers during their weekly food shop, but advertisers can have their offer printed three million times in 30 days in stores across the UAE.
It's a win-win situation and this concept is just one of a swathe of new business models seeking to cash in on the nation's new desire for a good deal.
Groupon, the international group-buying website, officially launched operations in the UAE this month, and offers daily deals on everything from massages to hotel packages.
With a presence in more than 500 markets around the world, Groupon is part of a worldwide movement in e-commerce.
However, the company faces stiff competition from a variety of home-grown sites such as GoNabit.com and cobone.com.
These websites deliver exactly the same concept - daily discounts with local restaurants, spas and shops through a subscriber's e-mail, which require a minimum quota of people to make the deal active.
Deal-of-the-day websites are perhaps the most aggressive trend to hit the market, but bargain hunters can also choose from budget websites that simply share companies' existing deals through an online platform, to downloadable mobile-phone applications and online voucher books that allow subscribers to either print or download coupons instantly.
"While consumers have always looked out for special offers and discounts, new technology and services mean that 2011 will see total price pandemonium," says Namita Ramani, who launched spagenie.ae six months ago after being inspired by her own passion for monthly manicures and facials.
The site acts as a platform for spas to promote their monthly specials. Spa fans can search for deals either by the amount of money they want to spend or by the treatment.
Although the service is free to customers, Ms Ramani plans to launch a gift-voucher service, sell spa products and set up a booking facility to make her business profitable.
And interest is growing fast. The businesswoman now sends her monthly newsletter to more than 10,000 people, receives 200 new subscribers a day and has watched her Twitter and Facebook fan base expand quickly.
"We definitely launched at the right time," says Ms Ramani. "Five years ago, we wouldn't have been able to launch a site like this because people weren't interested in deals."
The emergence of so many new ways to source bargains in the UAE has certainly raised the game for market leader The Entertainer.
When the voucher book first launched in 2001, it sold just 958 copies. Today, it has 10 different titles under its name, including the newly launched Entertainer Travel, and in the past two years the company has seen its business double in terms of books sales and revenues with expected sales this year of 90,000.
Its popularity comes down to a simple concept: customers who buy the annual book can redeem their vouchers at their leisure throughout the year.
For the customer looking to recoup the Dh300 or so they spent on the book, one trip to Wild Wadi with four people, for instance, will guarantee a saving of Dh390.
"The first couple of years after we launched, the growth was quite steady and then in 2006 and 2007, when the crisis hit, business exploded," recalls James Gosling, the company's business development director.
"Before then, vouchers weren't cool. All the restaurants were busy and even though we had the deal, people felt a bit strange handing over vouchers. Then, suddenly people had lost jobs or had pay cuts and they were no longer embarrassed about showing a voucher."
With The Entertainer's fortunes on the rise, other companies were keen to join the price-cut party.
But the new players are adamant they are all offering something different.
Ebony-Jane Penny, a British entrepreneur, is launching wordofmouth.ae. The site allows registered users to download vouchers onto their mobile phones, which they can then show to the outlet they want to redeem the deal from.
"I came up with the idea because I'd used The Entertainer and found it really inconvenient; I'd either run out of the vouchers or had to carry a heavy book around, which became really annoying," says Ms Penny, 24, who registered her company six months ago. "I decided to make it completely free so that customers don't have to enter their credit-card details online to get a good deal."
Ms Penny believes the spontaneity of her concept, where customers can literally download a voucher as they sit in the restaurant, is her unique selling point and she is actively promoting the site on social media and in the UK, where she hopes to attract the tourist market.
Another concept hoping to capitalise on the tourism industry is the budget website LowCostDubai.com. Founder Ainsley Duncombe, who says he was inspired by the financial crisis, launched the website in 2009 with an initial investment of Dh1,700.
Now, after investing a further Dh200,000, he says his site receives 100,000 hits a month and he e-mails his newsletter to 70,000 people three times a month.
The Briton is now tying up with The Entertainer to produce a Dh99 chequebook of 35 vouchers worth up to Dh4,000, aimed specifically at tourists.
"Visitors want great value and Dubai is trying to market itself against destinations such as Singapore and Florida, so it needs to be competitive," says Mr Duncombe.
For the more technologically savvy visitors, iVoucher Dubai - a Dh15 iPhone application - allows customers to find out exactly what deals are on offer in the area at the touch of a button.
Jane Schumann, who is from the UK, launched the concept this month after hearing about the app's success in Sydney.
"The beauty of it is that once you've downloaded it, you've got it for life and once we get more vouchers on board you become more aware of it," says Mrs Schumann, who also plans to launch the concept in Abu Dhabi, Italy, Mumbai and Bangalore.
Mrs Schumann could have other competitors snapping at her heels as both The Entertainer and Real Deal Middle East are considering launching a similar concept that will be available across all mobile-phone platforms.
"We don't know what's in the pipeline for everyone, but we knew what was coming," says Mrs Schumann, referring to her competitors. "But nothing is as user-friendly as ours, which is why we have put so much time and investment into it."
While these businesses believe it is easy to differentiate between their core concepts, for the consumers it really comes down to finding the best deal.
Mrs Grigg, who buys a copy of Entertainer Family every year, subscribes to GoNabit.com and cobone.com and keeps her supermarket receipts with vouchers printed on the back. She has lived in the UAE for 18 years and has watched fellow expats shift from shunning the voucher culture to embracing it wholeheartedly.
"It wasn't the done thing at first," she says. "But now I don't care. If I know I'm going for coffee or to a kids' play centre, I'll check what vouchers I have and then go to the place where I can get money off."
But with so many unbeatable offers available, customers could hit a stumbling block. The Entertainer's Mr Gosling says people need to read the terms and conditions carefully before they buy a voucher.
"Some of these very good offers might not be valid over the weekend or during the evening, so they tend to lose a bit of their value because people don't want to be pigeonholed," he says.
Ms Ramani agrees. "Too many companies are offering exactly the same concept, so you can predict how it will pan out. I wonder how many will survive and how many will go?"
For the consumer, whether or not all these deal traders survive is not important. For them, the bargain is the driving force and in today's current market, the message for businesses to get on board is clear.
"The marketplace has changed and if you have any kind of business and you are not being competitive, you're in trouble," adds LowCostDubai's Mr Duncombe. "The majority of people will search out the best prices and the best deal and I think that companies that have not taken notice of this are going to lose out."
A group-buying website in which the deal of the day is e-mailed to you. If you decide to buy, you only get charged if enough people purchase the deal. Pro: there are some big discounts on offer. Con: if not enough people buy in, your deal won't go live.
A platform that shares all the monthly specials and promotions available in the local spa industry. Pro: the site is completely free to use. Con:you have to book the deals yourself.
An internationally recognised deal-of-the-day website that offers discounts of up to 70 per cent if enough people buy into the deal. Pro: subscribers receive extra credit if they recommend friends who then purchase deals. Con: if you don't use the voucher within a certain time frame, you lose the deal you have paid for.
An iPhone application that delivers up-to-date discounts and special offers on entertainment, restaurants and attractions. Pro: just show your phone to redeem the deal. Con: you need to be an iPhone user to benefit.
It's the UAE's original deal broker, having printed voucher books that offer two-for-one deals on eating out and entertainment since 2001. Pro: buy the book and you have hundreds of vouchers to use over 12 months. Con: you have to lug a big book around with you.
A discount service that prints deals on the back of supermarket receipts. Pro: you automatically get the deals with your weekly grocery shop. Con: limited terms and conditions can apply on the deals.
A comprehensive guide to the best prices, promotions and deals on offer in Dubai and Abu Dhabi. Pro: whether it's flights, shopping or even a holiday, there are deals for every aspect of your life. Con: you need to keep checking the website or reading every e-mailed newsletter to keep track of bargains.
An online hub for what's on in Dubai, which also offers free two-for-one printable discount vouchers that can be downloaded to your mobile phone. Pro: it's completely free. Con: once you've downloaded the deal, you must use it within 48 hours.
