GTM 360 MARKETING SOLUTIONS

Ecommerce Coupon Companies

Market Study and Analysis

Nikhil Chhabra

MBA FT 2014-16 Faculty Of Management Studies,

University Of Delhi

1

Contents Introduction ......................................................................................................................................................... 2

Ecommerce Industry in India ............................................................................................................................... 3

Ecommerce Coupon Market ................................................................................................................................ 5

US Market ........................................................................................................................................................ 5

Indian Market .................................................................................................................................................. 5

Competitors ......................................................................................................................................................... 5

CouponDunia.com ........................................................................................................................................... 6

CashKaro.com .................................................................................................................................................. 6

Groupon India .................................................................................................................................................. 6

MyDala.com ..................................................................................................................................................... 6

CouponRani.com ............................................................................................................................................. 7

GoPaisa.com .................................................................................................................................................... 7

SaveMyRupee.com .......................................................................................................................................... 7

Comparison Of Sites on Web Based Data ........................................................................................................... 7

Alexa World Rank Comparison ........................................................................................................................ 7

Traffic Net Worth Comparison ........................................................................................................................ 8

Daily Page Views Comparison ......................................................................................................................... 9

Daily Advertisement Revenue Comparison ..................................................................................................... 9

Monthly Advertisement Revenue ................................................................................................................. 10

Result of Comparison .................................................................................................................................... 10

Online Survey Questions And Results ............................................................................................................... 10

Results ........................................................................................................................................................... 12

Preference of Customers- .......................................................................................................................... 12

Reason To Visit Coupon Sites .................................................................................................................... 13

Usage of Coupons ...................................................................................................................................... 13

Frequency of Coupon Usage- .................................................................................................................... 14

Conclusion ......................................................................................................................................................... 15

2

Introduction

Ecommerce sites have been attracting large amounts of investments from around the world. The

latest IPO of Alibaba is a testament to this fact. Flipkart which started as a small company is

attracting billion dollar investments. But these retail sites are also suffering losses. They are trying to

attract customers and create a market rather than profit. The discount model has led to growth of

Ecommerce Coupon companies.

There are a lot of Ecommerce Coupon Companies that have come up in the last 5 years. Coupons

used to be considered as a marketing strategy to attract customers. Today it has become a business in

itself. Indian customers are known for bargaining and a good deal will always pull them to the

product even if they don’t have an urgent need for it. This is what has led to the success of such

ecommerce coupon companies.

They do not sell products they sell deals. They collaborate with companies and provide attractive

offers. The companies benefit because they get a bigger customer base and customers benefit

because they get a good deal.

In this report you will find an assessment of the current market of ecommerce companies in India,

market share of these companies in ecommerce and an understanding of why customers visit these

sites.

The report begins with few facts about ecommerce market in India then what do the latest reports say

about coupon market in India and USA, competitors in the Indian market and their comparison and

after that the result of the survey conducted to study consumer perception.

3

Ecommerce Industry in India

India has a user base of 250 million internet users as of June 2014. It might be a small percentage of

the total population but this number has been growing at a fast pace. The internet users are also

quickly adapting e-shopping. As per the latest Assocham report annual growth rate of e-shopping is

33%. India’s ecommerce market was estimated to be worth $3.8 billion in 2009. It has grown to

$12.6 billion. The e-retail market is worth $2.3 billion approximately.

Consumers are buying all sorts of products online. The products range form books, healthcare,

beauty products and electronic gadets. The ease of home delivery and cash on delivery option have

made consumers more open to e-tailing.

4

The infographic given below represents a good picture of the ecommerce market in India.

Figure 1: Ecommerce in India, Source:couponrani.com

5

Ecommerce Coupon Market

US Market The United States is not that new to coupon sites. There are a lot of established players that have

begun expanding outside US aswell. Groupon is one of the major players globally. It is important to

track ecommerce coupon sites as 43% of the consumers report price comparing most of the times

according to Conversant Media report. The report also suggests that coupon sites positively affects

purchase journey. A Staggering amount of 97 million people confirmed usage of coupons. 50 % of

the respondents have purchased products after finding a coupon.

Indian Market Indians inherently love discounts and that makes coupon sites a viable idea for business in India.

Among all the start-ups coming up fastest growth is seen in this area. According to Comscore report

of December 2013 the coupon accounts for 13.5% of the total ecommerce customers in India. It is

growing at an exponential rate of 62.9% with 7.6 million unique users per month.

Groupon India claims to sell coupons every 23 seconds. FreeKaMaal.com gets 3500 transactions per

day cumulatively worth 3 to 5 million rupees. MyDala claims it sells 120,000 to 150,000 coupons

daily.

Competitors

In this section you will get to know about the various coupon sites in India and a brief about each of

them. The list of sites is given below:

1. CouponDuniya 2. WatzUpDeal

3. FreeKaMaal 4. MaddyCoupons

5. MyDala 6. VoucherCloud

7. Couponation 8. Zoutons

9. CashKaro 10. PriceBurp

11. CouponRaja 12. CouponBazaar

13. CouponRani 14. CashLtback

15. CouponzGuru 16. CouponSpy

17. SaveMyRupee 18. CashBack365

19. FlipIt 20. CouponPedia

21. Coupons.OneIndia 22. Grabon

6

23. CouponMantra 24. Himantra

25. CouponDekho 26. RetailMeNot

27. CouponChaska 28. 27Coupons

29. CouponHind 30. MyTokri

31. CouponsIndia 32. CouponPyk

33. ILoveCoupon 34. OnlineDiscountCoupons

35. Upto75 36. DealCentro

37. CouponLava 38. ShopPal

39. PennyFul 40. GetExtraBux

41. Dshopping 42. BestPriceDeal

43. Groupon 44. BuyHatke 45. CouponDesh

46. CouponCode

47. DealsAndYou

Information about few major players:

CouponDunia.com It started in 2012 and has grown quickly to be one of the dominant players. They have even

expanded internationally with CupomWorld in Brazil, KuponTime in Turkey, KodyBony in

Poland and CuponDunia Indonesia. Times Internet has bought a majority stake in Mumbai

based CouponDunia.

CashKaro.com This company was launched in 2013. It has been growing quickly and has clocked sales of

Rs.25 corers for its partners in the last six months. CashKaro was launched by Rohan and

Swati who prior to this launched Pouring Pounds, the English version of CashKaro. They

have a team of 32 people which has rapidly increased from 12 a year ago.

Groupon India Groupon was launched in India in 2011. It was formerly known as Crazeal. It is a part of the

global Groupon company. Their business model is different from the rest. They offer group

coupons. If a certain number of people sign up for that deal, the deal is executed otherwise no

one gets the deal that way.

MyDala.com MyDala.com was started in November 2009 and is headquartered in Delhi. It provides

coupons that can be used in 152 cities. They have tie ups with local merchants in those 152

cities. They also have tie-ups with major Telecom players like Vodafone, Idea and Tata

Docomo.

7

CouponRani.com CouponRani started in 2012 and hosts 850+ stores and 2500+ coupons from leading online

merchants of India. They provide offers on a wide range of categories including apparels,

footwear, lifestyle, home decor, baby products and many more. Their headquarters is in

Banaglore.

GoPaisa.com GoPaisa.com was started in 2013 by Aman and Sugam Jain. It majorly provides coupons for

other ecommerce websites like flipkart, snapdeal and many others that sums up to be around

300 websites. It is a group of 17 people who are running this site.

SaveMyRupee.com SaveMyRupee was founded in 2013. Similar to GoPaisa.com they also provide coupons of

other ecommerce websites rather than those of local merchants.

Comparison Of Sites on Web Based Data

Since the coupon sites are still in the nascent stage it is tough to compare them. The most suitable

method is to compare their website stats. Below you will find a comparison of the major coupon sites

on the basis of website tracking data.

Alexa World Rank Comparison Alexa World rank is available for all sites and provides a rough picture of the traffic it receives.

Alexa's traffic estimates are based on data from their global traffic panel, which is a sample of

millions of Internet users using one of over 25,000 different browser extensions.

8

Traffic Net Worth Comparison Traffic net worth is based on the advertising revenue and the number of visits the site gets annually.

2,210

2,355

10,001

13,994

15,407

18,773

21,230

27,665

29,132

44,144

87,965

1,05,284

1,19,151

2,66,036

2,86,716

3,12,396

MyDala

CouponDuniya

CouponRani

CashKaro

CouponzGuru

SaveMyRupee

FlipIt

GoPaisa

Groupon.in

Upto75

DealsAndYou

CouponMantra

CouponChaska

FreeKaMaal

CouponsIndia

CouponRaja

Alexa World Rank

Alexa World Rank

$11,00,000

$10,00,000

$2,40,876

$1,72,145

$1,56,357

$1,28,323

$1,13,472

$87,078

$82,693

$54,571

$27,386

$22,881

$20,218

$9,055

$8,402

$7,711

MyDala

CouponDuniya

CouponRani

CashKaro

CouponzGuru

SaveMyRupee

FlipIt

GoPaisa

Groupon.in

Upto75

DealsAndYou

CouponMantra

CouponChaska

FreeKaMaal

CouponsIndia

CouponRaja

Traffic NetWorth

Traffic NetWorth

9

Daily Page Views Comparison

Daily Advertisement Revenue Comparison

4,97,738

4,67,901

1,09,989

78,605

71,396

58,595

51,813

39,761

37,759

24,918

12,505

10,448

9,232

4,135

3,837

3,521

MyDala

CouponDuniya

CouponRani

CashKaro

CouponzGuru

SaveMyRupee

FlipIt

GoPaisa

Groupon.in

Upto75

DealsAndYou

CouponMantra

CouponChaska

FreeKaMaal

CouponsIndia

CouponRaja

Daily PageViews

Daily PageViews

$1,493.00

$1,401.00

$330.00

$236.00

$214.00

$176.00

$155.00

$119.00

$113.00

$74.76

$37.51

$31.34

$27.70

$12.40

$11.51

$10.56

MyDala

CouponDuniya

CouponRani

CashKaro

CouponzGuru

SaveMyRupee

FlipIt

GoPaisa

Groupon.in

Upto75

DealsAndYou

CouponMantra

CouponChaska

FreeKaMaal

CouponsIndia

CouponRaja

Daily Advertisement Rvenue

Daily Advertisement Rvenue

10

Monthly Advertisement Revenue

Result of Comparison According to the data seen above it can be inferred that MyDala.com and CouponDunia can be

considered to be the clear leaders. In every parameter these two dominate. Their traffic net worth is

nearly 5 times more than the third highest one which is CouponRani. Groupon is a global player but

its groupon.in is still new and is facing tough competition.

Online Survey Questions And Results

The objective of the survey was to study consumer perception of coupons sites and their awareness

about the sites. The sample size is of 104. The primary questions asked were:

1. How often do you use coupons in a month?

2. What would you like to use coupons for?

3. What is the best part about coupon sites?

4. Which coupon sites have you used or have heard of?

$44,796.00

$42,308.00

$9,899.00

$7,074.00

$6,426.00

$5,274.00

$4,663.00

$3,579.00

$3,948.00

$2,243.00

$1,125.00

$940.00

$831.00

$372.00

$345.00

$317.00

MyDala

CouponDuniya

CouponRani

CashKaro

CouponzGuru

SaveMyRupee

FlipIt

GoPaisa

Groupon.in

Upto75

DealsAndYou

CouponMantra

CouponChaska

FreeKaMaal

CouponsIndia

CouponRaja

Monthly Advertesiement Revenue

Monthly Advertesiement Revenue

11

Majority of the respondents were male. The respondents were primarily in the age group of 20-

30. The chart below shows the distribution. Since coupons are used majorly by young people it

should provide a good picture.

24%

60%

16%

Age of Respondents

20-22 23-25 26-28

Male 77%

Female 23%

Gender

12

Results

Preference of Customers-

Groupon, CouponDunia and Deals and You seem to be top 3 players. Surprisingly mydala.com is

not that well known amongst the group of people that responded to the survey. That data might be

skewed because of the lack of awareness about the site. But clearly top3 are fairly well known.

The above chart included people who have never used coupons but still had heard of the sites. Observing only

those respondents who have used a coupon the chart is shown below. There does not seem to be much of a

difference between those who have used coupons and those who have not. Top3 still dominate.

CashKaro.com 5%

CouponDunia 26%

CouponRaja 1%

CouponRani 3% CouponzGuru

4%

Deals and you 14% GoPaisa

6%

Groupon 28%

MyDala.com 9%

SaveMyRupee.com 2%

Upto75 2% Awareness

0

5

10

15

20

25

30

%

13

Reason To Visit Coupon Sites

The major reason still is discounts. Even though retail sites might be providing same discounts there

is still hope for more among the users and hence they visit coupon sites.

Usage of Coupons

The top preference for coupons is movies and food. After that there is close competition between

coupons for clothes, books, mobile accessories and travel. Again this data include people who have

never used coupons.

Discounts 82%

Ease of Access 2%

Multiple Options 10%

NA 3%

same 3%

Reason To Visit Coupon Sites

0

5

10

15

20

25

Books Clothes ComputerAccessories

Food andDining

MobileRecharge

Mobilesand

Accessories

Movies Travel

Percentage

Type of Coupon Preferred

14

For those who have used coupons before the data is shown below-

Here although the top 2 remain the same but clothes come out to be the third most preferred clearly.

Frequency of Coupon Usage-

The data below shows how often do people use coupons in a month. The frequency of usage of

coupons is still low. In a month coupons are used not more than 1-2 times. A lot of people have

never used coupons.

0

5

10

15

20

25

30

35

Clothes ComputerAccessories

Food and Dining MobileRecharge

Travel Movies

%

People who have used Coupons

1-2 times 40%

3-4 times 12%

more than 5 times 2%

Never 43%

Sorry , Never used it 3%

Usage of Coupons

15

Conclusion

The Ecommerce market is growing exponentially. The number of people in India who do not use

internet is high. 250 million out of 1.2 billion people use the internet. This number is quickly

growing rapidly. This shows that there is huge growth potential for ecommerce sites. Ecommerce

industry is growing at an annual rate of 33% as per the Assocham report. This kind of growth is not

seen in any sector.

Coupon sites are also attracting people. In developed markets like US they are doing well. Around 97

million people confirmed they use coupons according to Conversant media reports. 43% of the

respondents also confirmed visiting coupon sites to compare prices before making a purchase.

The Indian market has also witnessed growth in the number of Coupon sites in the last 5 years.

Global sites like Groupon and RetailMeNot have entered the Indian market and there are also a

number of start-ups that have come up. According to Comscore report of December 2013 the coupon

accounts for 13.5% of the total ecommerce customers in India. It is growing at an exponential rate of

62.9% with 7.6 million unique users per month.

There are a lot of coupon sites that are accessible on the net, the major ones being Mydala.com,

CouponDunia.com, Groupon.in and DealsAndYou.com, these sites different ways of offering

coupons. Some sites offer coupons for other ecommerce retail sites like Flipkart and Amazon. Other

sites offer coupons that can be used at local retail shops. Groupon offers a different variant in which

coupons are valid only if a certain number of users apply for that coupon.

The survey findings revealed that the primary reason for users to visit coupon sites is to look for

discounts. They want to compare the prices that other site are offering or is being quoted at retail

shops. The survey also revealed that people want to use coupons for movies, food and clothes.

Frequency of usage of coupons is still low. At max people use coupons once or twice in a month.

There is a lot of potential for growth and as the number of people using internet grows so will the

market for coupons.