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Groupon CEO Apologizes for Japanese New Year Rumpus TMCnet Contributor In what is known as one of the internet's largest misstep, online coupon provider Groupon had to step up to the Japanese public to apologize for one of its retail participants, Bird Café.
2011 wasn't off to a great start for the Groupon partaker. With its running special for "osechi," Japans first and most cherished meal of the year, Bird Café overpromised and under-delivered, dishing out meals that were subpar, unsightly and inedible, according to many of the customers. Osechi, an ornate display of culinary art and delicacy, is usually a colorful and fancy spread of meats, fish, and other Japanese fair, one that was usually home-cooked. However, with many taking advantage of ready-made sets, too many relied on Groupon's offering from Bird Café, only to be sorely disappointed for their 10,500 yen ($127 USD) purchase.
The rumpus is attributed to the rapidly growing popularity of Internet ads, particularly those offered through the Chicago-based coupon provider. According to Groupon's CEO Andrew Mason, Groupon was created to bring new and inventive experiences to its users. 'So when we do the opposite, as we have in this case, it really hurts," Mason said in a statement per Associated Press.
The osechi sets that were ordered were either in horrible condition or were delivered in an untimely matter. Customers expected to receive what was being advertised, which was a lavish display of food only to be disappointed by the underprepared Café's output of the product.
Looking for a solution to the problem, many customers took to the Internet for answers, citing harsh criticisms and unfavorable publicity for Groupon. In an attempt to save face, Mason released a video message via YouTube, telling the public that Groupon "really messed up" and promised a better experience for users in the near future, detailing what the company was going to do to gain consumer confidence.
Groupon took its foray into the Japanese market sometime in August.
'Basically because the popularity of Groupon Japan has grown so quickly it took us off guard,' Mason said. 'We weren't expecting to run into this problem so quickly."
The osechi dilemma has left a bad taste in the mouths of many, prompting some to wonder whether such an important tradition should be left in the hands of big online markets for next year and in the future.
Mason assured that proper training procedures have been put in place, as well as ample planning for the user's experience.
Michelle Amodio is a TMCnet Contributor. She has years of experience in business and marketing. Previously, she worked in broadcast journalism and as an editor abroad in London, England for a privately owned magazine. To read more of her articles, please visit her columnist page. Edited by Janice McDuffee |