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)|
In Rank Order based on Traffic, compiled by Puneet Garg | Using Source : Alexa
Just a glance at the table above & you can see that Snapdeal.com 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 fashionandyou.com. 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 (Snapdeal.com was launched in Feb 2010 only & madala.com 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 www.sosasta.com. 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?