The Growth and Trends of the Coupon Industry in India
There is no denying the fact that the internet retail market in India has grown exponentially over the last three years. As per a recent Comscore Report, a growth rate of 31% per year was calculated. Since the country has leaped to become the world’s third largest internet population with 73.9 million potential customers to tap; the Indian online market poses significant potential for retailers.
These numbers have undoubtedly resulted in catching the eyes of wide variety of international and domestic online coupon companies. With a wave of entities launching their online coupon businesses in the past 2 years, the quintessential Indian online buyer has been able to enjoy the benefit of a variety of money saving deals presented to them. This is possible with the help of tie ups with a variety of industries and some of the top brands in the market.
Anisha Singh, Founder of Mydala says, “There is a plenty of opportunity in this space. Users in India are deal hunters; a recent report had mentioned that 87% of online customers admit to looking for deals before making a purchase. Increasing Internet penetration, low cost gadgets and consumer awareness will fuel the rise of the digital coupon industry and there will be plenty of innovation happening in the near future in this space.”
She also adds, “Success is not a day’s work. So it’s important to have a vision but it’s great if that comes with some perseverance to back it up. Within 3 months of us starting, there were 38 deal sites and counting.”
How does this help?
For starters, the fact remains that today, the Indian online retail industry is already quite contested and increasingly closing the point of saturation. The age of coupons will coax existing players to adapt to a variety of innovative strategies to compete with the new wave of international arrivals into the market or risk an early end. To be able to claim and maintain their market share, coupon websites will be forced to put on a creative thinking hat. Here, the beauty of competition lies in the fact that it is the customers that will win due to innovation driven online retail experiences.
Furthermore, Comscore revealed that in the year 2013, mobile internet use resulted in a 14.2% growth of traffic in the Indian online retail market. With more and more coupon websites and e-stores focusing on taking advantage of the mobile platforms, shopping online is not only more affordable but also a lot more convenient.
As already established, ultimately, the increase in competition will result in greater savings for the Indian online buyer. As each site works hard towards offering the best value for the shoppers; buyers will be able to make the most of a variety of deals introduced.
Another benefit that is unique to the coupon model is that higher the competition in the industry, the more the merchants will benefit from it. From the perspective of affiliate merchants, the more coupons that introduce on different websites; the higher the chances of traffic and sales conversions. Also, taking into consideration that the majority of the merchants that are listed on these coupon sites tend to be local Indian brands, this helps ensure that in spite of international coupon companies setting shop here, it is the local economy that is deemed to benefit.
All in all, India is at the cusp of witnessing the fastest growing e-commerce market in the entire Asia Pacific region. With a compound annual growth rate expected to be at 57% between 2012 and 2016, as per Forrester, the coupon sector is set to exhibit maximum growth.