Interest In Online Deal Sites Dwindling Despite Holiday Season; ECommerce Still Booming

MyDala, Deals&You, Khojguru and all the other Groupon-Clones in the Online Deal Scenario will not be too happy. After Groupon’s Initial Public Offering failed to live up to expectations, we now have news that Indian Deal sites may not be doing too well themselves.

Indian e-commerce market set to cross Rs. 46,000 crore with a 47% growth in 2011. However, the festive season has failed to show any positive growth in Online Deal sites, with most sites experiencing a decline in user traffic. According to ViziSense, Snapdeal has shown a traffic drop of 46% and MyDala of 34% in the month of October.

Mr. Amit Bhartiya, General Manager, ViziSense said, “We noticed a drop across Indian deal sites. However, the impact on e-shopping sites like Flipkart and eBay was opposite, with traffic increasing in the same period.”

However, Snapdeal’s CEO Kunal Bahl disagrees, saying, “We were giving our site a makeover and had stopped marketing activities. However, sales have been growing phenomenally well, at 50 per cent month-on-month. We are now shipping products to 3,000 towns and cities,”

The Indian e-commerce market is set to cross the Rs. 46,000-crore mark at a 47 per cent growth rate in 2011, reports IAMAI.

E-tailing (online retail) comes second after online travel, with an eight per cent market share (Rs 1,550 crore). Companies like Flipkart have seen 55% growth in number of users in October, going up from 18 lakh to 28 lakh users. Positive Word of Mouth, a series of Ad Campaigns and satisfied customers are reasons for its growth.

According to the IAMAI, overall potential for e-commerce will go up from 14.6 Crore households in 2009-10 to 22.9 Crore households by 2024-25.

What about you? Have you lost interest in daily deal sites off late? Do let us know in the comments below.

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