Group buying sites offer deals at heavy discounts, getting mass volume for them. Though it is new to India, group buying has been growing in the US for some time. For instance, US website GroupOn started by offering 50-90 per cent discount. Some of the prominent group-buying websites in India are Mydala, Koovs, Snapdeal and Dealsforyou. For Mydala, discounts go up to 70 per cent.
For instance, one merchant gave a 93 per cent discount for a tattoo. Undoubtedly, a great deal for the customers, but what does the merchant gain? Simple. He gets hundreds of customers in a matter of days.
Verticals that have picked up a lot of traction are highly popular among the younger generation. Think restaurants, salons and recreation such as weekend getaways. “One weekend, we had a cruise package as a deal and it sold so much that we had to do multiple cruise bookings,” says Kunal Bahl, founder and CEO of Snapdeal.
Arun Natarajan is the Founder & CEO of Venture Intelligence, the leading provider of data and analysis on private equity, venture capital and M&A deals in India. View free samples of Venture Intelligence newsletters and reports. Email the author at email@example.com