October 25, 2011
By Don Young Jr
It wasn’t that long ago that I featured an exciting daily dealer – Descuento Libre. I have felt and still feel that niche markets continue to be the space that will thrive. Through my correspondence with Descuento, I realized that this company had found a fantastic niche in the Hispanic and Latino community. The company had hoped to expand to new markets and grow its consumer base. One of the best ways to achieve that goal is through mergers and acquisitions. Well, today’s announcement certainly puts an exclamation point on that idea.
DescuentoLibre.com proudly announces its acquisition of Groupacho.com, a daily deals website focused on the Hispanic market with operations based in Los Angeles. Groupacho has been running local deals with La Fonda Lounge, El Cid Restaurant, Chivas Soccer, and the Conga Room. All of which are considered local hot spots in the L. A. area.
The Hispanic deal site is such a new concept in the e-commerce market, so collaborations and partnerships are key to standing out among the hundreds of mass-market deal sites that have sprouted since Groupon launched nearly three years ago. Despite the small number of deal providers to the Hispanic market, as the 2010 Census made it apparent, this segment is the fastest growing demographic in the United States.
To create awareness in the Los Angeles area, Groupacho.com advertised on Latino 96.3 FM with endorsements from Raq-c, a well-known female DJ popular with young Latinas. According to a recent blog post by Univision, “It is the mother in the Hispanic household that drives most major decisions whether it’s buying a home, a car, or having the children stay school to pursue higher education.” Reaching Latinas, particularly young internet-savvy mothers, is crucial to succeeding as a Hispanic deal site.
Groupacho co-founders David Barr and Chris Carrillo brought Los Angeles its first daily deals platform for Latinos. They believe the business will be in good hands with Descuento Libre.“They have fantastic brand recognition, and their site offers a wonderful user experience,” says David Barr. He adds, “The upside in the online Hispanic space is far greater than any of the other demographic verticals in the market.” The initial response so far from the Latino community in Los Angeles has been very positive.
The terms of the contract were not disclosed by either company.
With any luck, I’ll be fortunate enough to chat with CEO Boris Portman. I am sure Descuento Libre has other growth strategies in mind. Stay tuned with us at Daily Deal Media as we keep you in the loop on the daily dealing industry.
About Descuento Libre:
Founded in 2010, Descuento Libre is dedicated to serving the diverse Latino community – and those who love the many different Latino cultures – through great discounts on shopping and restaurants, professional services, events and entertainment, and recreational activities.
Descuento Libre – headquartered in Austin, Texas – is active 23U.S. and 54 Mexico markets. Its deals focus feature local businesses in Hispanic-dense neighborhoods, as well as places that promote Latino culture, whether it’s through food, music, or the arts. The company is also committed to giving back to the community by partnering with non-profit and charitable organizations.
Source: Daily Deal Media