The social nature of the internet has made our world smaller and flatter. As individuals, this has led us to leverage our networks to make decisions, share information, create content and amplify it in the online space. The fact that we like to be connected and make decisions influenced by the recommendations of our network has given rise to the social commerce phenomena that is redefining how we make purchases online. Added to this is the fact that consumers always are on the lookout for the best deals for products and services either offline or online.
Groupon’s creation of the online deals space, a model replicated globally, acts as a lifestyle enabler for people looking to have a good time with friends and family within their city. This has not only created business opportunities for merchants but also created new experiences for consumers.
Why are online deal sites not dead? The simple reason is that customers and merchants continue to see value in the offerings being provided. In India we have further localized our model. By doing this, merchants do not need to wait for a minimum number of coupons to be purchased. Instead, the deal triggers with the very first coupon sale. Crazeal only sells deals we believe that we would purchase and that creates a challenge for us to discover the most interesting deals for consumers.
People don’t come to a deal site because they know what they want. They come to us, because we tell them that this is what they can get for an amazing price. And the best part is that every day there is a new deal. This gives people a reason to come back to deal sites regularly to discover offers that are innovative, fun and affordable.
Deal sites like ours showcases one deal a day, a high quality and extremely local deal for every city. This enables merchants to use our website as a marketing platform and generate new leads. So while consumers may go to a restaurant to experience a deal, in many cases they end up spending a significant amount beyond what has already been paid for while purchasing the deal. This amount is at full value and results in an extremely high return on investment for the merchant.
Additionally, Crazeal is a full-price deal site. We take on the full responsibility for a deal and don’t earn anything until the merchant does. This helps build trust, credibility and a sustained relationship with the merchant. This also endears us to our members because they know that there is one party, i.e. Crazeal, who will manage everything for them. All they need to do is print a coupon and present it to a merchant.
Being a part of Groupon, merchants also leverage the global network we manage. So this allows Indian merchants to market their offerings on any of our global sites. At the same time this also empowers consumers with international deals, particularly in the travel segment, which they usually would not have access to. This creates a win-win scenario for our merchants and consumers.
Why is there potential for deal sites to still grow? People always want the best deals, whether they are in the USA or Australia and even India. The usual suspects like rising internet penetration, increase in PC, laptop and mobile penetration, and availability of disposable income are cause for this. But another interesting reason for people to keep coming back to Crazeal is impulse.
How does impulse work? Imagine a product like a bedspread. You may buy a bedspread once or twice a year, but you usually plan for it and go out shopping accordingly. But if you visit Crazeal and see an offer for a bedspread which you wouldn’t get elsewhere, chances are high that you will go for the product, whether you like it or not. The only reason you will do this is because of the great deal that you are being offered; it’s not because you planned to buy it. In this way impulse will always be an important and intrinsic driver of the growth of deal sites.
Over the coming months, we see the scope for deal sites to rise. In India, deal sites have the potential to become an integral part of people’s daily lives. From the moment they wake up, consumers will want to know that one deal of the day that will add a fun element to their lives. As deal sites mature, they will increasingly be seen as discovery engines, platforms that help you discover something affordable and fun to do in your city or even outside.
Driven by India’s consumption story, the opportunity to grow is boundless. This is visible by the number of deal sites that have cropped up in India. Talent is an area of concern for the ecommerce industry, but that should be managed in the long run. With it’s young talent pool, it won’t be long until future leaders of the industry emerge from India. For the moment, as long as Crazeal innovates and remains committed to adding value to the lives of consumers and merchants, the scope to grow will only increase.