The founders of CatchOfTheDay, Gabby and Hezi Leibovich, will retain a controlling stake in the group businesses, with Lee Fixel from Tiger Global and Jason Lenga from Seek joining the board.

The funds will fuel the e-commerce group’s continued leadership in the high growth daily deals sector, and support the group’s expansion into new locations with a focus on more localized deals, the introduction of specialized offerings and continued investment in technology – including mobile applications – to meet the future needs of consumers.

Lee Fixel, managing director of Tiger Global said, “What was immediately apparent when we started discussions with the Leibovich brothers was their deep understanding of the space and what was required to build a globally competitive e-commerce group – particularly the importance of building strong supplier and procurement networks and investment in technology to remain innovative and agile.”

James Packer shares this view, adding: “Unlike many other players in the market, the team’s proven experience in building profitable e-commerce businesses, means they have the skills, supplier networks and economies of scale to keep growing and leading the market.  We are excited to align ourselves with the market leader in the online daily deals sector in Australia.”

CatchOfTheDay and Scoopon operate in the high growth daily deals sector, part of the broader global online retail market. Daily deals sites are based on offering one highly discounted deal (product and services) a day to customers. Gabby and Hezi Leibovich are pioneers in the Australian daily deal sector, launching CatchOfTheDay.com.au five years ago in 2006 and successfully expanding their business with the launch of group buying site Scoopon.com.au in 2010.

Gabby Leibovich says despite the growth in the daily deals sector, Australia’s online retailing industry is still in its infancy when compared to other markets, which is one reason why they considered investment from international partners.

“It is still early days in Australia when it comes to online retail and to support our next phase of growth we were open to overseas investors who could share a different perspective into the online retail market, as well as bring new skills, advice and contacts to further our growth and expansion.

“The investment consortium of Tiger Global, CPH, Andrew Bassat and Glenn Poswell possess a true passion for the internet. Through our relationships with them we are able to access a wealth of advice, experience, and extensive contacts – both local and international – to propel our business forward. We look forward to working with them,” said Leibovich.

KPMG Corporate Finance and Arnold Bloch Leibler acted as advisers to the owners of CatchOfTheDay and Scoopon.

“Maybe we’ve got Gerry to thank again,” co-founder Paul Greenberg told SmartCompany.

Read the full article on SmartCompany.

“This new venture will provide ticket buyers, venues and event promoters with a more powerful option than they are getting now and will open up new marketing opportunities for major events across News Limited’s network of newspapers and websites,” Hartigan said.

Foxtix will work closely with News Limited’s media platforms to provide promoters and venue managers a wide marketing reach; and provide News Limited readers with special offers and benefits.

For venues, promoters and artists, Foxtix will be pursuing new marketing opportunities with increased and exclusive coverage of events. There will also be marketing arrangements with MySpace to capitalise on the widespread sharing of entertainment among audiences on social networking sites.

Among benefits that subscribers to News Limited’s newspapers, websites and apps can expect from Foxtix are exclusive opportunities to purchase tickets before they go on general sale, exclusive access to events, and discounts.

“Foxtix aims to achieve three things; break up the cosy duopoly in ticketing in Australia, give consumers access to lower booking fees, and utilise News Limited’s media assets to give ticket buyers, venues, promoters and artists a stronger alternative to what currently exists in ticketing,” Hartigan said.

Foxtix will be led by Adam McArthur, currently the general manager of Moshtix, Australia’s leading general admission and live music ticketing provider. Moshtix and Foxtix will operate side by side under Mr McArthur’s leadership.

Mr McArthur said: “Foxtix will do things differently. Compared to Ticketek and Ticketmaster, Foxtix will give venues and promoters more control of the ticketing of their event and more buyer data – at a lower cost.

“Foxtix will also be giving consumers lower booking and transaction fees on their tickets.”

“Venues, event managers and promoters have been telling us for a long time that there is a clear need for a third player to enter the market to offer a friendlier, alternative service. With Foxtix, we are confident we are answering this call.

“Over the last seven years, through our involvement with Moshtix, we have witnessed many situations where the industry and consumers are being poorly served. When you compare the Australian ticket market to other global markets, we are a long way behind when it comes to technology and service.”

Foxtix will further differentiate itself from other Australian ticketing companies such as Ticketek and Ticketmaster by:

• implementing innovative technology to minimise scalping
• providing consumers with alternative ticket delivery methods
• allowing consumers to purchase tickets on mobile devices and re-sell tickets
• allowing consumers to choose their own seat at venues

“The team at Moshtix who have built it into Australia’s leading general admission and festival ticketing provider will be applying their skills and knowledge to service Foxtix as we leverage News Limited to become a strong force in Australian ticketing.”

Foxtix’s place in the News Limited stable of brands will be further emphasised in sponsorship, media and marketing packages. Already, integrated media and ticketing deals have been established for The Sunday Times’ Perth Fashion Festival, The Courier Mail’s Home Show and The Daily Telegraph’s Breakfast on the Bridge and Luna Park 75th Birthday.

There is a number of existing Moshtix customers who will transition to become initial Foxtix customers. These include Swimming Australia, The Lifestyle Channel – I Love Dinner series, MasterChef Masterclass and A-list Entertainment.

Mr. McArthur continued: “We are also working on some other significant deals that we will announce in the near future.”

The company’s new website can be found at foxtix.com.au

Foxtix will sit in News Digital Media’s Emerging Businesses division under executive director of emerging businesses, Michael Solomon to whom Adam McArthur will report. Other brands within this division include moshtix, Getprice and Learning Seat.

1300 FLOWERS’ chairman Jack Singleton says he is “delighted by the transaction that brings Fast Flowers under the 1300 FLOWERS umbrella. Fast Flowers has strong brand recognition and has grown to become an industry leader over the last decade. This is testament to the abilities of CEO Jonathan Barouch and his management team”.

1300 FLOWERS will take operational control of the Fast Flowers Group in October and will continue to maintain both brands.

According to Jack Singleton “there are significant synergies between the two operations and we have picked up some wonderful assets which will only serve to improve our supply chain – which means fresher flowers – and more of them – for our customers”.

Jonathan Barouch is pleased with the acquisition, having founded the company as a high school student in 1999. “Growing Fast Flowers from an idea into one of Australia’s high profile floral brands has been a wonderful experience. I have known and respected Jack’s business abilities for almost 10 years so I couldn’t have asked for a better person to lead the business through its next stage of growth”.

Jonathan is looking forward to pursuing other business opportunities after the successful integration.

1300 FLOWERS was founded in 2005 by Sydney entrepreneur Jack Singleton. With a network of hand-selected florists all around Australia, 1300 FLOWERS prides itself on delivering the freshest and longest lasting flowers – in the most beautiful arrangements and bouquets. The 1300 FLOWERS customer service team understands that every flower delivery is an expression of an emotion. As such, every order and customer request is handled by the 1300 FLOWERS team with passion and respect. This understanding of what sending a gift of flowers is all about has seen 1300 FLOWERS fast become one of Australia’s leading flower delivery brands.

Fastflowers.com.au was the brainchild of teenager Jonathan Barouch who, while still at high school, could see the potential of the internet when it came to purchasing flowers. He saw that many of his friends were too shy to order flowers for their girlfriends in the traditional way, so he set up his first internet company at the ripe young age of 17. Fast Flowers has undergone significant growth since its launch in July 1999 and now holds one of the top spots for online flower sales in Australia and New Zealand. With the addition of international destinations, Fast Flowers now offers a complete floral delivery service to almost anywhere in the world.

Fast Flowers owns and operates retail stores in Sydney, Melbourne and Brisbane and has alliances with florists around Australia and New Zealand to offer same-day flower delivery nationally and internationally.

“For us it’s very profitable for the simple reason that you get no cost of fulfilment, you only get the cost of freight. So this can be an enormous opportunity for us going forward, but we’ll move along with the customers.”

Click here to read the full interview transcript.

SYDNEY, 20 July 2010 – Australia’s consumer eCommerce market is underdeveloped, lagging both the US and UK markets by approximately three years according to the latest eCommerce analysis issued by consulting company, Frost & Sullivan. Online retail consumer spending in Australia in 2010 is expected to account for approximately five per cent of total retail sales, however if spending on overseas sites is excluded, this drops to around three per cent. In contrast, online as a percentage of total retail spend (domestic only) is over five per cent in both the US and UK.

The report, Australian eCommerce Market 2010, analyses consumer online purchasing of tangible products. It includes the results of a survey of more than 1,000 active online consumers to provide purchasing information relating to five product categories: electronics, computers, books and CDs/DVDs, jewellery and fashion accessories, and clothing and footwear.

Total consumer eCommerce expenditure in the 2010 calendar year, excluding online services such online ticketing and events, travel, music downloads and financial services, is forecast to reach A$12 billion. This equates to per capita expenditure of approximately A$536 per year, which is slightly behind the US and UK markets. Expenditure is predicted to show moderate growth over the next four years, rising to A$17.7 billion by 2014 with a compound annual growth rate of 10.2 per cent. While the number of local e-tailers entering the Australian market has increased significantly in the last five years, there has been no corresponding increase in the volume of local transactions. The report notes that a significant proportion of new entrants fail to succeed over the long term.

A key reason for the lag in local activity is the lack of online presence by many of the large retail chains and department stores. Despite moves by stores including Big W, JB HiFi and Dick Smith, the small number of eCommerce participants and a lack of sufficient internal support from senior management continue to inhibit progress in this area. Frost & Sullivan suggests that the Australian market needs to see the online launch of several retail chains within the next 12 to 24 months to provide the catalyst for further expansion.

Other inhibitors to the development of a local eCommerce market include the strong physical store presence in capital cities and metropolitan areas, and Australian consumers’ limited acceptance of the typical online precursors – mail order and catalogue sales. Security concerns may also be affecting uptake. One in 40 of the survey respondents (2.5 per cent) indicated that their credit or debit card had been stolen in the last 12 months, suggesting that security remains a fundamental issue that needs to be addressed by the eCommerce industry.

The international retailer tactic of targeting Australian consumers by offering localized web services such as product prices and shipping in Australian dollars is paying off. It is estimated that 40 per cent of Australian online shopping expenditure is now conducted on overseas sites. eBay is the dominant online retail player, having successfully evolved from an auction site into a platform for fixed price overseas sellers. Companies such as Amazon.com which are building marketplaces and tools to power other retailers also pose a threat to some Australian vendors.

Consumer behaviour

Survey responses confirm that price is the key driver for shopping online (nominated by 39 per cent of respondents), followed by the convenience of shopping from home (29 per cent). The majority of consumers (58 per cent) showed no preference as to when they shopped, stating that they split their time evenly between weekends and weekdays.

Just over one-fifth of respondents (21 per cent) plan to spend more on online goods over the next 12 months compared to 16 per cent who indicate they intend to spend less. These results are in line with Frost & Sullivan’s forecast for moderate growth over the next four years. The strongest growth is expected in the categories of clothing and footwear, jewellery and fashion accessories, books and CDs/DVDs.

Credit and debit cards are the most popular form of payment method, used for online purchasing by 50 per cent of respondents within the last 12 months. PayPal is the second most preferred method, used by 42 per cent of shoppers.

Most shoppers (64 per cent) will visit a search engine before making a purchasing decision and more than half (57 per cent) seek out product comparison sites, indicating that consumers are increasingly reaching out to specific sites for product research rather than just conducting a general Internet search.

Phil Harpur, Senior Research Manager, Frost & Sullivan, comments, “The number of Australian shoppers using international retail sites confirms that there is a large untapped potential for Australian retailers to develop a local online customer base. However, we are unlikely to see major growth in this sector until more of the big name retailers get online.”

The e-commerce industry in Australia has seen rapid growth over the last year and is forecast to reach $AU33.8 billion by 2012 up from $AU24 billion last year.

In the last six months alone, large Australian retailers such as BigW have extended their presence online, providing a significant boost to the industry. As Australian businesses become increasingly engaged online, the conference will also address the future of mobile.  Globally, consumers are expected to spend $119 billion by 2015 through their mobile phones, accounting for about eight percent of all e-commerce activity, making it a valuable channel for retailers.

Mark Harvey, Event Director for Online Retailer, said: “There has been huge interest in the 2010 conference and a clear desire from Australian retailers to build, expand and improve their online offerings both online and increasing on mobile. We are dedicated to helping retailers and e-commerce professionals to grow and shape the future of e-retailing in Australia.”

PayPal Australia is in full support of the conference initiatives but warns that Australian retailers need to take better advantage of the opportunities online in order to fend off increasing competition from overseas.

Frerk-Malte Feller, Managing Director, PayPal, said: “Whilst the Australian eCommerce industry is growing, it is still significantly lagging behind the rest of the world with Australia’s domestic retail spend online half of what it is in countries such as the UK and USA.  As Australian retailers struggle to build effective online presence, overseas competitors are taking advantage of the gap in the Australian market and are currently taking around 40 per cent of Australia’s online retail spend.”

Several factors have been responsible for the slower uptake of e-tail amongst Australian consumers. While the cost of shipping, long delivery times and poor selection of items available in online stores have prevented some consumers from shopping online, concerns around the security of transactions remains the number one concern to consumers shopping online today.

Feller continued: “There is a huge opportunity for retailers to capitalise on the growing online marketplace in Australia. In the last six months alone the average consumer spent $1,223 on online shopping, an increase of $130 from the second half of 2009.”

According to Feller, the future of Australian e-commerce is incredibly exciting: “We have come a long way in the last few years.  PayPal now has over 30,000 active business accounts registered to send and receive money and I expect to see this number grow rapidly over the coming year as more Australian businesses build a presence online. We believe that the future of money is mobile as consumers seek to make payments from any connected device – be it a laptop or mobile phone today or a TV or a refrigerator tomorrow.”

They’ve also released a new clip featuring Mortimer:

Date: Weds,  30 June  2010
From: Matt Rutledge (CEO – Woot.com)
To: All Woot Employees
Subject: Woot and Amazon

I know I say this every time I find a picture of an adorable kitten, but please set aside 20 minutes to carefully read this entire email. Today is a big day in Woot history. This morning, I woke up to find Jeff Bezos the Mighty had seized our magic sword. Using the Arthurian model as a corporate structure was something our CFO had warned against from the very beginning, but now that’s water under the bridge. What is important is that our company is on the verge of becoming a part of the Amazon.com dynasty. And our plans for Grail.Woot are on indefinite hold.

Over the next few days, you will probably read headlines that say “Matt Rutledge revealed to be monstrous pseudo-human creation of Jeff Bezos.” You might even see this photo making the rounds. Rest assured that these rumors have nothing to do with our final decision. We think now is the right time to join with Amazon because, quite simply, every company that becomes a subsidiary gets two free downloads until the end of July, and we very much need that new thing with Trent Reznor’s wife on our iPods.

Other than that, we plan to continue to run Woot the way we have always run Woot – with a wall of ideas and a dartboard. From a practical point of view, it will be as if we are simply adding one person to the organizational hierarchy, except that one person will just happen to be a billion-dollar company that could buy and sell each and every one of you like you were office furniture. Nevertheless, don’t worry that our culture will suddenly take a leap forward and become cutting-edge. We’re still going to be the same old bottom-feeders our customers and readers have come to know and love, and each and every one of their pre-written insult macros will still be just as valid in a week, two weeks, or even next year. For Woot, our vision remains the same: somehow earning a living on snarky commentary and junk.

We are excited about doing this for all sorts of reasons. One, our business model is so vague that there’s no way Amazon can possibly change what it is we’re truly doing: preparing the way for the rise of the Lava Men in 2012. Also, our deal means that Jason Toon will finally be released from that Mexican jail owned by Zappos honcho Tony Hsieh. No, don’t lie, Tony, we’ve seen the paperwork. And we need a powerful ally in case Steve Jobs finally breaks down and comes after us for all our Apple jokes over the years. Don’t think of it as a buyout; think of it as NATO!

I will go through each of the above points in more detail later, but first, let me get to the top 5 burning questions that I’m guessing many of you will have.

TOP 5 BURNING QUESTIONS:

Q: F1RST!!!!
A: Okay, that’s not a question, but it is a good place to mention that our forums will still be policed by a team of moderators, as before. And also, Woot’s previous and always-in-effect privacy policy will still be just as always-in-effect, so don’t worry, there are no plans to suddenly give up or merge your forum data.

Q: Is Snapster leaving?
A: Are you kidding? He’s out the door about ten seconds after that check clea- that is to say, Snapster will continue as Woot.com CEO, just like before, and the rest of our staff’s not going anywhere either. Woot and all our various sites will continue to be an independently operated company full of horrible, useless products and an untalented jerkface writing staff, same as it ever was.

Q: Will the Woot culture change?
A: Amazon is interested in us because they recognize the value of our people, our brand, and our unique style of deep-tissue, toxin-releasing massage. And they don’t want to start changing things now. Amazon’s hoping our nutty Woot steez continues to grow and develop (and perhaps even rubs off on them a little). They’re not looking to have their folks come in and run Woot unless we ask them to, which incidentally you can do by turning off the bathroom lights and saying the word “Kindle” three times; a helpful Amazon employee will appear in the mirror. That said, Amazon clearly knows what they’re doing in a lot of areas, so we’re geeked about the opportunities to tap into that knowledge and those resources, especially on the technology side. This is about making the Woot brand, culture, and business even stronger than it is today, and we expect that any changes will be for the better or we wouldn’t bother with this endless paperwork.

Q: Where can I get one of those vuvuzelas?
A: Are you even paying attention?

Several months ago, when we were all sitting on Jeff Bezos’s bumper drinking orange Mad Dog and trying not to be noticed, we heard a voice in the distance yelling “You kids better not scratch my Mercedes or I’m calling the cops!” We ran. It was later that night when Amazon came by the house and said they liked our style and also wanted to get that money we owed them for messing up the chrome. We like to think that our relationship with Amazon will continue at this level for many, many, many years to come.

But we here at Woot are still a thoughtful company, so, at the end of the day, I watched the sunset, and its golden-hued glory made me think about two questions:

1) Is there really a universal deity?

2) Does such a thing preclude free will or are we humans in control of our own destiny?

After spending a lot of time falling asleep at the library while facing the philosophy books, I determined that the concept of destiny is a construct that allows man a gentle release from facing the terror of his existence, and that a Hyundai full of twenties would pretty much offer the same benefits. And so, I ultimately said YES!

This is definitely an emotional day for me. The feelings I’m experiencing are similar to what I felt in college on graduation day: excitement about getting a check from my folks combined with nausea from a hellacious bender the night before. I remember fondly that time when an RA turned on the lights and yelled “WHO OWNS THESE PANTS?” Except this time, the pants are a company, and the RA is you, and the sixty five hours of community service is a deal that will ensure the Woot.com experience can continue to grow for years and years and years, like a black mold behind the Gold Box. Join us, because together, we can rule the galaxy as father and son. Also, there will be six muffins waiting in the company break room, courtesy of the nice folks at Amazon.com. Welcome to the family!

Matt Rutledge
CEO, Woot

It is understood the online mall will be led by fashion, which the company sees as its strongest attraction, and split into categories including electronics and books.

MEDIA RELEASE – Although Australian bricks and mortar retailers have been slow to expand online, they have a distinct advantage over web-only retailers, according to the Executive Director of Salmat Digital, Paul Marshall.

In his presentation to the Online Retailer conference in Sydney today, Paul said that brand awareness, loyalty and an existing customer base are key assets when Bricks and Mortar retailers take their business online. Combine that with the power of the store network to give their customers a true multichannel shopping choice and they have a strong playing hand.

“Despite being slow to adopt eCommerce, the history and level of trust retailers have built with their customers will pay major dividends when they expand online, Paul said.

“Data from the US shows that consumers of multichannel retailers, or retailers with both a physical and online presence, are proven to be more loyal, buy more per visit, and have a higher lifetime value.

“According to the US Internet Retailer website, of the top 100 online retailers in the US, Bricks and Mortar retailers make up the largest segment (circa 44%) and are also the fastest growing segment over web-only retailers, mail-order retailers and manufacturers. Fast movers include Costco, Wal-Mart, Sears, and Best-Buy.”

“This shows that despite a slow entry, the bricks and mortar retailers are in a strong position to succeed in selling online. They can easily play catch up and overtake web-only retailers.”

In his presentation, Paul emphasised to retailers the importance of laying the right foundations, rather than rushing into an ill-thought out online strategy.

“Success in multichannel retailing is a marathon not a sprint. Making sure your house is in order is essential, develop the right strategy and invest where it matters.”

In 2009, eCommerce in Australia is expected to generate around $18 billion in sales.