Take a Dip – It’s Raining Discounts in India !!

With a flood of Discount / Deal sites in India & a new deal-site name popping up every other day, I thought of making a list of all the possible such websites in India.

Just some googling & some news report analyzing & soon this table swelled up to a distinguished number of 34 sites (table below). The first thing that came to my mind was ..Phew!! That’s a lot of competition in this business space.

S.No Discount Deal Site Traffic Wise Rank (India) S.No Discount Deal Site Traffic Wise Rank (India)
1 19 18 3123
2 149 19 3983
3 194 20 4502
4 205 21 10638
5 209 22 11362
6 240 23 15427
7 371 24 20074
8 375 25 27798
9 412 26 28323
10 450 27 30976
11 519 28 38177
12 713 29 54176
13 734 30 91851
14 985 31 141614
15 986 32 218309
16 1075 33 8077651
17 2779 34 17866336

In Rank Order based on Traffic, compiled  by Puneet Garg | Using Source : Alexa

Just a glance at the table above & you can see that is rated as the first among the entire group discount scheme website in India (based on traffic rankings in India –Alexa). With an India rank of 19th in terms of the traffic generated (Google is number one), it surely is far ahead of its competition.

Most of the 70% of Snapdeal’s traffic doesn’t visit any other page than the home page which projects that the conversion rate is definitely less than 30%. Thus 30 people of 100 visiting the site have either clicked the deal, or have shown some kind of interest in the deal. The traffic trend consists of majority men under the age of 25 who are all educated.

The next best site in traffic terms will be Again this is visited more frequently by users who are in the age range 18-24 & mostly men. Another interesting fact being that these men are often accessing these sites from their work place..(so much for office productivity !!)

With the competition space already getting chock-a-block and new sites being launched every other day, the business of group deal or online discount store is really a hit among the growing Indian ecommerce space.All of the above sites are serving same purpose but treatment is different.

Concept of group bargain sites is very new in India ( was launched in Feb 2010 only & in Nov 2010) thoughit’s been around in the west started by sites like groupon. Incidentally Groupon has also entered the Indian market by acquiring Kolkata based Internet giant Google also has plans to bring its answer to Groupon – Google Offers – to India. (Yeah this is going to be great fun in future…just wait for it)

Considering this spree of new companies entering this crowded market space it is but obvious that only the fittest will survive this competition. The weaker will either shutdown (mobstreet being latest victim) or will be acquired by others. The best way out is to join hands with others players in the space &consolidate their businesses – a strategy which still has high chances of survival for these new entrants.

Still whatever may be business tactic, In any case I feel the ultimate beneficiary of these sites is the consumer aka you & me, who have gainedfromthe great deals via this e-commerce revolution. I am sure you must have stumbled to at least one of these sites.  Isn’t it?

12 thoughts on “Take a Dip – It’s Raining Discounts in India !!

    1. Nice article Puneet.
      This ecommerce business does not look simple as it seems to be. There are the other related aspects of this business model which is far too contrast to be ignored.
      If you see all these e-commerce websites, they are typically driven through inorganic search results where the user ends up on these sites through landing pages searching for their items or wanted reviews/feedback on the products. But what lacks here is the CONFIDENCE in Indian user to buy directly from these sites. How many of us have bought any mobile or any other product from these ‘aggregator’ kind of sites by going directly to their home page. Though I am not sure about the kind of revenues these generates, but for sure would be very less compared to brick and mortar shops in India.
      Second, the SCALE of their business is pretty limited and contains restricted variety of items posted for sale.
      If you compare both confidence and scale with US based ecommerce website like amazon, bestbuy, ebay, newegg, etc, you’ll certainly realize how different are these websites than Indian ones. It’s simply not putting the x-star rating with original price strikethrough, bolding out >60% saving tag, and final price you pay + free shipping banner. It’s more with the mindset of user to buy without having iota of doubt and at the same time providing extremely good range of products and presenting choices to the user.

  1. Hey Ankur, Nice to hear your opinion. Well I agree Confidence is definitely one aspect that will take some time to build up. After all Indian retail user is used to the normal shopping mechanism of touch, feel & test before buying the product (How can some1 buy a shirt without feeling its cloth :) . An Indian shopper is always skeptic.

    Yes on scale aspect as well, India will take some time to match up to the amazons & ebays’ of the west.

    But given the way internet is growing in India , I think it just a matter of time before we see a real boom in this business. Lets invest in this ..:)

  2. There are too many new coupon websites launch and day by day the competition in this field is going to be very tough. I had always use because this website has all latest coupons and it regularly updated.

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