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Daily deals site RedLipDeals launches, targets adult market niche

Monday, 25 June 2012 | By Michelle Hammond

A new daily deals site focused solely on adult services has launched in Sydney, suggesting there are still untapped niches within the sector, particularly those targeting a more selective market.


RedLipDeals, which is currently only available in Sydney, launched earlier this year. In an email sent to StartupSmart, the business said it wants to build credibility within the adult industry.


“We are focused on [the] Sydney market and want to help our customer[s] to find the best adult services and products in Sydney at the best possible price,” managing director Dean Wilson said.


The website, which describes itself as user-friendly, enables consumers to access deals through a “discreet and confidential” service. The site is structured in the same way as other deal sites.


RedLipDeals said it recently embarked on a marketing campaign, and is looking for business partners within the adult market.


“The daily deals market is a growing market… and we were looking for a different niche. We didn’t want to be another daily deals site doing deals for restaurants,” Wilson told StartupSmart.


“In Sydney, the adult industry is accepted and allowed, so it was an obvious choice.”


Wilson says while the site is “very, very new”, it has so far been well received by consumers.


“It’s the early stages but people are looking for that kind of service, and there is a need for it. In Australia, we’re the first site of this nature.”


“We’re not affiliated with any of our merchants, so we’re not biased. And we’re trying to make it attractive to men and women.”


Wilson says in addition to escort and massaging services, the site plans to offer deals for strippers and other adult entertainment, along with adult-themed restaurants.


“Being the first to the market, we have good branding, a good name and a good concept. We give good service and we don’t cheat on anything… I welcome competition,” he says.


On its website, RedLipDeals said it provides its subscribers with “great deals from local businesses”.


“We leverage our extensive knowledge and relationships to provide you with unparalleled savings from the finest establishments in your city,” it said.


“Every few days, we feature a new deal at savings of up to 75% off.”


RedLipDeals said, unlike other deal sites, it only focuses on “what we know best”, suggesting the business has no intention to branch into other categories.


“From the moment you buy your deal to the moment you use it, we want you to enjoy your experience with RedLipDeals, so much so that you’ll tell your friends and family,” it said.


The news comes one week after Melbourne-based site Deals.com.au merged with Sydney-based site Ouffer.


Telsyte senior research manager Sam Yip told StartupSmart the Deals-Ouffer merger confirms a consolidation period is now underway within the sector.


With regard to new entrants, Yip said the key is to look at where the next level of growth is coming from, as RedLipDeals has done.


“Specialised group buying niches that are out there are trying to get to those [growth areas] before the large sites do,” he said.


“In the small end of town, there is only space for niche, targeted offers, and also really selective geographies.”