Friday, May 27, 2022
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Coupons, The Future Of eCommerce

In the global context, e-tailers like Amazon, are going guns in terms of innovation and offering services that attract millions of customers each day. Some of the offerings like one-day free delivery, prime deliveries, 30-day replacement warranty, cashback offers, Cash on Delivery (COD), discounts, mobile wallets and more are some stand out examples from these giants.

Coupons, The Future Of eCommerce
Coupons, The Future Of eCommerce

We are living in the era of discounts and promotions, where coupons and cashback play a key role. With the advancement of technology, consumers have switched from traditional to digital platforms and ever since then, everything changed about the way people shop. And now, coupons are here to stay and have become a great way to save money on everything, from shopping for groceries to electronics to
clothing to whatnot. And currently, they are an easy way to lower the cost of purchase, while also building customer loyalty.

The massive shift from traditional to tech has enabled the eCommerce sector to be more accessible and efficient. Devices like smartphones, tablets and high-speed broadband are assisting online customers. Banks have become other key players in the eCommerce ecosystem in providing the best of options and offers for easy-effective payments. On top of all this, are the digital coupon platforms, like that of GrabOn, which is a leading digital coupon platform in the country offering countless coupons to millions of users from thousands of brands in India.

In the global context, e-tailers like Amazon, are going guns in terms of innovation and offering services that attract millions of customers each day. Some of the offerings like one-day free delivery, prime deliveries, 30-day replacement warranty, cashback offers, Cash on Delivery (COD), discounts, mobile wallets and more are some stand out examples from these giants. However, without the coupon industry, the fad for eCommerce would have been nothing but a distant dream. The more the awareness of coupons, offers or be it discounts, the more is the motivation to shop. And this eventually helps in boosting the profits of companies at large.

The Rise In Internet Population = Rise Of Coupon Market

India’s internet population is ever increasing. The number of smartphone users was estimated to cross over 760 million in 2021 in India. Globally, the estimates stand at 3.8 billion users in 2021. With such a high growth rate, India’s market share is almost 20 percent of the global market. This eventually is driving the eCommerce market, which, parallely is propelling the online deal and coupon market in the
country.

India’s Coupon Market

India’s coupon market is making strides year-on-year and shoppers are looking for deals and offers online than ever before. According to data by Dealstreet, nearly 95% shoppers are searching for deals online and 74% buyers look for coupons on deals and couponing portals before making a purchase. This indicates an increasing demand for digital coupons in India and the potential the coupon and deals
industry carry.

The eCommerce industry has also witnessed a massive growth with the increase in internet users. The market value of the eCommerce industry in India was around 50 billion US dollars in 2018, but as per estimates, this number is said to increase four times to 200 billion US dollars by 2027. With eCommerce on the rise, and with more shoppers preferring to buy online, a large chunk will be captured by the
coupon market.

Indians Looking For Deals…

According to a recent study by M&C Saatchi Performance, 51 percent of Indians said that they spend more time looking for the best deals and offers online, before they make a purchase. While, 50 percent of the respondents said that they have used such promotional codes for discounts during online purchases. Such data indicates the good health of the coupon market for India.

But how do companies benefit from this and why are the coupon players riding the waves?

Digital coupons not only serve the purpose of providing discounts to customers, but on a larger scale, they are increasing a strong customer base, retaining the existing ones --- all for building a brand and customer loyalty. The more coupons in the offering, the better is the growth in the long run. As long as businesses offer coupons or discounts, the more the chances for people to keep coming back. All this is only possible with the help of coupon players in India. They are playing a major role in providing a set of fresh and new customer base to brands, businesses and organizations of all sizes, increasing sales, helping in branding, and customer loyalty. With unique strategies and top notch marketing and advertising strategies, the coupon players are riding the waves and assisting the growth of eCommerce in some way or the other.

What are the reasons for such a high usage?

According to a study by M&C Saatchi Performance, Indians opt/search for coupons for the following
reasons:
● Save Money: Applying coupon and promotional codes helps shoppers save money on their orders
and bills.
● Sharable: Easy for shoppers to share coupon codes with loved ones.
● Easy to use: Available to online shoppers for use, anytime and anywhere.
Coupons On Demand
● Electronics
● Education
● Clothing
● Health & Personal Care
● Furniture & Home Decor
● Travel
● Groceries
● Recharges
● Cabs

Of all the segments mentioned above, the fashion segment has been witnessing major usage of coupons, followed by other segments like electronics, beauty, health, etc. While shopping sites like Paytm, Amazon, Myntra, etc are the top choices of users and these segments have registered an exponential rise in coupon usage year-on-year. Food delivery apps such as Zomato and Swiggy are the key players to witness massive usage of coupons for each of their orders, except 2020, due to Covid-hit lockdowns. However, post the relaxations, these players have bounced back, stronger. Meanwhile, online pharmacies are seeing further rise month-on-month, post Covid, in view of social distancing and convenience to buy medicines online.

Where do shoppers find these coupons?
Most of the coupons online are found on coupon websites, brand websites, retailer websites, search engines, email offers and on social media platforms. Interestingly, as per an analysis from one of the leading coupon websites in India, GrabOn, 51% users of E-coupon still come from top 6 Indian cities, followed by Tier 1 and Tier 2 cities, that contribute about 49% of the market.

Most importantly, women are now searching for coupons more than men. As of 2015, only 27% of women were searching for coupons online, but over the years, there has been a significant shift. As of 2021, the usage has touched 42%. As discussed above, the rise in smartphone and internet users has also helped in the increase of coupon usage among mobile users, compared to laptop and desktop.

The Future Of Coupon Market

The value distribution of coupons is quite low in India compared to other countries like the USA. As of 2021, India was estimated to be USD 40 billion, but the promising rise is expected to power the industry to reach USD 114 billion by 2025 and USD 124 billion by 2027. Between 2021-2027, the market size of the coupon industry is forecasted to grow at a CAGR of 20.6%. The online coupon and deals website
market is expected to grow at a CAGR of 15.6% between 2021-2027, with a potential to reach USD 430 million by 2027.

Final Thoughts

The future for the coupon industry is bright in India. But for the key players, this may not be a smooth ride. There are over 150 players in the market today but a handful are going great guns. Companies should step up their game, innovate and introduce strategies to ‘top’ on a day-to-day basis. They should be able to capture more online shoppers, customers and partner with more merchants for greater conversions. To learn from, India’s leading coupon and deals company, GrabOn is quite an example. It has been topping the #1 rank year-on-year since its inception with its key focus on innovation and quality. Over the years, not only did it attract loyal customers, but built a strong network of merchants. Looking ahead, especially this year, it is set to incorporate new marketing techniques to entice customers on a larger scale.

To conclude, the rise of smartphone users will certainly power the growth of the coupon industry in India and also eCommerce.Conversions in the eCommerce industry will be higher due to coupons and the large offerings from the coupon and deals players. The industry will also experience greater merchant partnerships in the coming years because people are looking for coupons, more than ever.
 

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