June 14, 2010
Kactoos.com: Social e-commerce evolves in Latin America
“It’s hardly a stretch to predict that group buying will become one of the biggest Web trends of 2010,” Mashable’s Pete Cashmore wrote on CNN.com in April. Groupon is the market leader in the U.S., but it has plenty of rivals—and plenty of copycats around the world. Here in Colombia, Kactoos.com launched in March in a bid to tap into the growing number of online shoppers in Latin America.
The slogan of the Miami-headquartered company is “Shop together and save,” and like other sites modeled on the idea of Tuangou—a group-buying strategy to get discounts that originated in China—prices go down as more people join. Testimonials on the site claim that users have been able to save up to USD$500 on items like a MacBook Pro. Colombia was chosen as a pilot market in Latin America because of its relatively high level of Facebook and Twitter adoption. Kactoos plans to soon launch in Brazil, Argentina, Chile, Peru, Spain and Mexico, as well as the United States.
The social shopping trend is enabling participants to exchange knowledge and contacts and cooperate to get discounts. Brands have an opportunity here to deliver more platforms instead of campaigns, exploring innovative ideas for upcoming distribution challenges. A related example and good practice to watch is the integration of Facebook Connect with Levi’s online store.
Photo credit: Kactoos.com