Nigeria, group buying gets a Qlu

QluQlu Nigeria, a group discount website that offers a daily deal on the best local goods, services and events in Lagos re-launched today with a new and improved User Interface as well as a tweak on its Business Model.

Using the principles of group buying/bargaining, QluQlu negotiates 30% – 70% discounts with quality local businesses. QluQlu subscribers get free daily emails alerting them to the deals. The deals are activated only when a minimum number of people agree to buy, encouraging subscribers to share the promotion with family and friends. By guaranteeing a large minimum number of new customers, QluQlu creates a powerful new marketing and customer acquisition vehicle for local merchants.

In effect, QluQlu Nigeria brings buyers and sellers together in a collaborative way, offering consumers great deals they can’t get anywhere else and while offering the local business new and desirable customers. This innovative approach to e-commerce has brought millions of dollars in new revenue to local businesses worldwide while saving more than N600,000 (US$ 3,800) for subscribers in Lagos over the course of 6 weeks since its original launch.

In the new version of the business model, QluQlu customers will pay the full price upfront for the coupon and then have a period of between 3 and 6 months to redeem the coupon at the premises of the local business. This is in contrast to the earlier model where users got the coupon for free and paid only on redemption. Explaining the shift in model, Kofi Afaedor, CEO of QluQlu noted that the earlier model was to build confidence within the consuming public. Now with some 300 coupons distributed, it’s time to step up the model to enable the company to provide customers with greater discounts on quality products and local businesses with the cash up front to justify the huge discounts.

The new user interface also integrates with social media, enabling users to share content and deals via Facebook & Twitter. Users can also follow the site on Twittter @QluQluNg or become a friend on Facebook to learn about new deals and other developments. Afaedor noted that the team will continue to evolve the application and business model to enable it provide world class internet-based services customized to the needs of local Nigerian businesses.

QluQlu customers can pay either by direct bank deposit or transfer into QluQlu accounts with GTB, Zenith Bank, UBA, First Bank or Union Bank. Also they can pay online via Cash Envoy or PayPal.

By Angela Meadon