Daily deal retailers in the Middle East turn to mobile for success

The significant competition in the Middle East among daily deal websites have sent these businesses to the mobile commerce marketplace to appeal to the growing number of smartphone users.

In following with this trend, LivingSocial, the American giant, intends to begin its own mobile deals service that will bring consumers in the Middle East “instant” deals in 2012, at the same time that its competitor, Cobone, says that 20 percent of its own business will likely be through mobile channels in the near future.

Daily deal sites, such as the worldwide market leader, Groupon, provide consumers with discount offers for local companies such as stores, spas, and restaurants, and many of these businesses, including the aforementioned global leader, have made their way into the Middle East within the last year.

LivingSocial made its first steps into the region by acquiring GoNabit, a local start-up. The Middle Eastern head of sales and operations, Sohrab Jahanbani, said that as of November, the site has launched a regional mobile app and that it has every intention of expanding its presence there.

According to Jahanbani, the LivingSocial service that will be launched next year will offer instant discount offers depending on the physical location of the consumer. He explained that if a consumer is at home in Jumeirah Beach, for example, and he or she is looking for a place to eat for lunch, then the app will provide offers that are being made at local restaurants. He said that the company intends to launch this option soon.