Flood of Group Bargain Sites (7 and counting) -Idea Out, Execution is Key
Note: Updated List of 25+ Group Buying Sites in India here.
Group buying sites are all over the place and every event i go to i hear about 1 more launching soon. Group buying or Crowd Bargain sites as they are called are eCommerce sites that leverage social networking to find enough other buyers to become eligible for group discounts. In the past month i have come across 7 startups that are trying to solve the same problem with absolutely no differentiation. All of them are getting the deals but are yet to get buyers. Most importantly, spreading Word of Mouth for local businesses through social media, which was the basic aim of these sites is just not happening (a little too early to say). Here is a look at them.
List of Group Buying Sites in India
1. Mydala (earlier coverage) – Currently available in Delhi, Mumbai and Bangalore. Launching soon in Chennai, Kolkata, Hyderabad and Pune. Over 15000 followers on Facebook. Deals are good and practically usable. Tie-up with iMint for shopping rewards.
2. Snapdeal – Currently available in Delhi, Mumbai and Bangalore.Launching in Chennai, Hyderabad amd Pune. Over 9000 followers on Facebook. Deals are not impressive. Has a lot of moolah to spend but execution wise it’s a turn off.
3. Grabbon (earlier coverage)- Available only in Bangalore. A little new and has only 2000 followers. The deals are not too good to talk about. Having to pay partially online and rest during redemption has made it a little complicated for junta to understand.
4. Koovs – Available only in Bangalore. The follower base is about 1000. The deals are not valuable though on the face of it they tend to save you 70-80%. They are also stuck in the ‘pay partially online, rest offline’ model. The amount paid online is their share of revenue or service fee as you might call it.
5. Mobstreet – The latest kid in the fight is currently focused only on Mumbai. The only one with a different site design. Not much to comment as yet but the team is certainly enthusiastic.
6. Wanamo – After much delay they are finally launching on Friday. Founders have contacts with some follower-rich users on Twitter and FB so expect it to be the echo of the ecosystem. Should be interesting to watch out.
7. Group2Deal – Launching in Delhi sometime this month. The team is creating a little buzz on FB already.
All the above sites need to work on user education as the whole idea of group discounts is very new to Indians. Specially terms like ‘minimum sale before deal goes live’, ‘pay partially online, rest offline’, ‘extra ordinary restrictions’ are still alien to Indian buyers.
I am sure there are many more clones in the making. The idea and business model is very much out and the key lies in execution now. Since everyone is focused at a different territory i would highly suggest you to sleep with your competition i.e. Tie-up.
There sure lies an opportunity here to launch an aggregator. What if someone can combine all of them? Also, how significant would it be to collaborate with a local search player or to use a local platform like Osutra?
Thanks to all these bargain sites expect a lot of deals (spams) flowing in to your social media streams.
Editor’s Note: Founders, #Pi will keep an eye on you. You better get good deals from Bangalore (Ashish), Delhi (Arvind) and Mumbai (Naman) for each of our star writers. ;)
[Naman is a startup enthusiast and has worked with couple of Indian startups as Product Manager. He writes at The Inspire Blog]