Rue Local Says They Don’t Cater to Groupon’s Coupon Clipping Customer

The online flash-sale retailer, Rue La La is gearing up to launch its deals site, Rue Local in New York City. The site, similar to Gilt Group in that it caters to an upscale clientele, launched last fall in Boston.

According to the New York Post, “The move highlights increasingly stiff competition for online coupon sites such as Groupon and Living Social.”

It’s doubtful that this is actually the case, since neither Groupon nor LivingSocial has an interest in focusing their marketing solely toward the upscale consumer. So Rue Local and other niche sites probably won’t have much, if any, impact on the two leading deals sites. But that works both ways since focusing on a niche market, or in this case an exclusive cross section of the consumer market, means that sites like Rue Local have a better chance of surviving.

In fact, Rue Local President, Mark McWeeny told the Post:

“Our customers are very different from the coupon-clipping customer that frequents Groupon. They spend more than the average ticket, tell all their friends and they come back.”

Well let’s just say to Mr. McWeeny’s rather high-brow and disparaging “coupon-clipping customer” remark, Groupon users may not spend as much money on higher-ticket items, but when they get a deal they do tell their friends and they do come back. The consumer base may be different, but stiff competition? Where have you been New York Post? I don’t think so.

Source: New York Post