A recent industry survey by Assocham revealed that e-commerce in India is picking up at a considerable pace, and the subcontinent will soon be competing with China whose an e-tail market is close to touching the $200 Billion milestones. The study revealed that e-shopping industry in India is growing at an annual compound growth rate of 33 %. Presently worth only $13 Billion, the market is expected to reach a whopping $78 Billion by 2020. Furthermore, retail penetration has improved to move up to 65 %, with 53.4 million shopping online in this segment every month. This frantic pace of growth is driven by several factors including some eminent developments which took place in the e-tailing space recently.
Interestingly, the e-commerce arena has witnessed some major funding, mergers, acquisitions and buy-out activities. As Flipkart raised funding worth $1 Billion in July, its arch competitor Amazon announced to invest $2 Billion in its India operations soon after. Following the suit, US-based online retailer Uber is also all geared up to make it big in the Indian marketplace. Already having a presence in 10 cities across the country, Uber India is the company’s largest market outside India in terms of the number of operational cities.
And this is just the beginning. Recently we were filled with reports about Flipkart acquiring the fashion young-gun Myntra. While some industry experts saw this acquisition as a move to combat the huge stakes invested by Amazon, others thought it to be an example of the ferocious progress of e-commerce in the country. Meanwhile, some online players are also planning to go public. Snapdeal, for instance, is in informal talks with banks in the United States about the potential future of an IPO. Flipkart’s Mukesh Bansal also dropped hints about the e-commerce giant going public in the near future.
While a strong-headed focus remains on the upscaling of online commerce in India, There’s another segment of the industry which is all geared up to taste its share of success. It’s the online couponing websites. Deals and coupon sites are fast emerging on the web scene, and players like shop pirate and Groupon have already arrived. With these sites offer time-saving features and promise attractive discounts, online shoppers are turning to them to buy just about anything. No need to haggle with the shopkeeper for discounts or go globe-trotting to find your favorite product anymore. Now you can just sit in the comfort of your home and treat yourself to alluring discounts available online. Currently, there are six major coupon sites operating in India and their numbers are growing fast.
The foremost reason that fuels such immense growth of these couponing sites is the Indian mindset of being attracted to hefty discounts and anything free. A recent survey conducted by a famous couponing site revealed that 95% of buyers agreed to have searched for deals online. And 74% of these shoppers look at couponing sites for best deals and working coupons. Besides this other major factors that account for the success of these sites include augmented use of smartphones and the ever-increasing population of first-time internet users in the country. “Today more than 200 Million people in India have access to the internet and as per recent news, this is likely to go up to 500 Million by 2018. This will definitely have a huge impact on the business graphs of couponing sites. The more people shop online, the more deals will they look for” said Kulpreet Kaur, Co-founder Shop Pirate.
Though space is relatively immature, experts believe that online deals and coupon sites are the Trojan’s horse that is seeking people’s attention. In the near future, several couponing sites will mushroom in the e-commerce arena and most likely will be driving a revenue worth $2 Billion for Indian firms. As they say, the e-commerce industry in India is on fire, and for the good. With more and more tech-savvy consumers giving emphasis on online buying, there is no looking back.
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