As I predicted in our previous post on TradeIndia that soon IndiaMART will be in news. Here comes news from IndiaMART platform. They are now starting focusing on its Tenders portal (which was not in limelight earlier). They have opened all the doors for getting tender notification. Now, members will have full access to government & private tenders from all across the India. No need to subscribe for getting the full access, its available for FREE.
After sourcing guide, IndiaMART is now offering FREE tender notification service. Currently, they have database of more than 50,000 live tenders. Earlier, member has to pay around 2000-3000 Rs. for giving 3 months access.
Mr. Dinesh Agarwal, Founder & CEO, IndiaMART.com says that they are always serving its customers the best business services and by giving free full access to tenders they are helping SMEs who use tenders as instruments for their business growth.
IndiaMART is sacrificing the revenue generated through subscription for getting more traffic and this portal will also generate revenue through advertising only. These days IndiaMART is giving free service on its many portals like ClickIndia, Mega Sourcing Portal and now tender notification portal. However, its global tender notification portal is still working on subscription based model.
Indiamrt has competitors like tendernews, indiatimes offering subscription based service.
Consequence: Red ocean strategy – I understand the subscription fee is too less and displaying ads may fetch more revenue. But, it will increase the competition. You will see later, all service providers would start offering for free and hence the traffic would also start dividing.
Initially, Indiamart may see good revenue from google adsense by playing in the blue sea. But what about future strategy.
@Mayank: Currently indiamart is playing in blue sea, i’m more concerned to know what they will do when all the competitors jump in blue sea…
Currently, they have just done this to be a first runner in competition & generate good revenue(more than existing revenue) too…