We live in the era of discounts and promotions, where coupons and cashback play a key role. With advancements in technology, consumers have shifted from traditional to digital platforms and since then everything has changed in the way people shop. And now coupons are here to stay and have become a great way to save money on everything from groceries to electronics to
clothes to nothing. And currently, they are an easy way to reduce the cost of purchase, while building customer loyalty.
The massive shift from traditional to technology has made the e-commerce industry more accessible and efficient. Devices such as smartphones, tablets, and high-speed broadband help customers online. Banks have become other key players in the e-commerce ecosystem by providing the best options and offers for simple and efficient payments. In addition to all these, there 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 innovating and offering services that attract millions of customers every day. Some of the offers such as free one-day delivery, prime deliveries, 30-day replacement guarantee, money back offers, cash on delivery (COD), discounts, mobile wallets and many more are outstanding examples of these giants. However, without the coupon industry, the e-commerce craze would have been a distant dream. The greater the knowledge of coupons, offers or discounts, the greater the motivation to shop. And this ultimately helps to increase the profits of companies as a whole.
Rising Internet Population = Rising Coupon Market
India’s internet population continues to grow. The number of smartphone users was estimated to be over 760 million in 2021 in India. Globally, estimates stand at 3.8 billion users in 2021. With such a high growth rate, India’s market share accounts for nearly 20% of the global market. This ends up boosting the e-commerce market, which at the same time propels the online deals and coupons market into the
India’s coupon market
The Indian coupon market is growing year on year and shoppers are looking for deals and offers online more than ever. According to data from Dealstreet, nearly 95% of shoppers research deals online and 74% of shoppers research coupons on deals and coupon portals before making a purchase. This indicates a growing demand for digital coupons in India and the potential of the coupon and offers
The e-commerce industry has also seen massive growth with the increase in the number of internet users. The market value of the e-commerce industry in India was around US$50 billion in 2018, but estimates are that this number is expected to increase fourfold to US$200 billion by 2027. With the e-commerce on the rise and more shoppers preferring to buy online, much of it will be captured by the
Indians looking for deals…
According to a recent study by M&C Saatchi Performance, 51% of Indians said they spend more time researching the best deals and offers online before making a purchase. While 50% of respondents said they used such promotional codes to get discounts while shopping online. This data indicates the good health of the coupon market for India.
But how do businesses take advantage of this and why are coupon players riding the waves?
Digital coupons not only serve to provide discounts to customers, but on a larger scale, they increase a strong customer base, retaining existing customers—all to build a brand and build customer loyalty. The more coupons in supply, the better the long-term growth. As long as businesses offer coupons or discounts, the more likely people are to come back. All this is only possible with the help of coupon players in India. They play a major role in providing a fresh and new customer base to brands, businesses and organizations of all sizes, increasing sales, helping with branding and building customer loyalty. With unique strategies and top-notch marketing and advertising strategies, coupon players are riding the waves and contributing to the growth of e-commerce in one way or another.
What are the reasons for such use?
According to a study by M&C Saatchi Performance, Indians choose/seek coupons for the following products
● Save Money: Coupon Codes & Promo Codes app helps shoppers save money on their orders
● Shareable: Easy for shoppers to share discount codes with loved ones.
● Easy to use: Available for online shoppers anytime and anywhere.
Coupons on request
● Health and personal care
● Furniture and interior decoration
Of all the segments mentioned above, the fashion segment witnessed a major use of coupons, followed by other segments like electronics, beauty, healthcare, etc. While shopping sites like Paytm, Amazon, Myntra, etc. are users’ top picks and these have seen an exponential increase in coupon usage year over year. Food delivery apps such as Zomato and Swiggy are the main players to witness massive use of coupons for every one of their orders except 2020 due to Covid lockdowns. However, after the relaxations, these players rebounded, stronger. Meanwhile, online pharmacies continue to increase month on month, post-Covid, given social distancing and the convenience of buying drugs online.
Where do shoppers find these coupons?
Most online coupons are found on coupon websites, brand websites, retailer websites, search engines, email offers, and social media platforms. Interestingly, according to an analysis by one of India’s leading coupon websites, GrabOn, 51% of e-coupon users are still from India’s top 6 cities, followed by Tier 1 and Tier 2 cities, which contribute to about 49% of the market.
More importantly, women are now looking for more coupons than men. In 2015, only 27% of women searched for coupons online, but over the years there has been a significant change. In 2021, usage hit 42%. As mentioned above, the increase in the number of smartphone and internet users has also contributed to the increase in the use of coupons among mobile users, compared to laptop and desktop computers.
The future of the coupon market
The distribution of coupon value is quite low in India compared to other countries like the United States. In 2021, India was estimated at USD 40 billion, but the promising rise is expected to see the industry reach USD 114 billion by 2025 and USD 124 billion by 2027. Between 2021 and 2027, the size of the The coupon industry market is expected to grow at a CAGR of 20.6%. The online coupons and deals site
The market is expected to grow at a CAGR of 15.6% between 2021 and 2027, with a potential to reach USD 430 million by 2027.
The future of the coupon industry is bright in India. But for key players, it may not be easy. There are over 150 players on the market today, but a handful are doing just fine. Companies must step up their game, innovate and put in place strategies to “outdo themselves” on a daily 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 a good example. It has topped the No.1 ranking year after year since its inception with a focus on innovation and quality. Over the years, she not only attracted loyal customers, but also built a strong network of merchants. In the future, especially this year, it is planned to incorporate new marketing techniques to attract customers on a larger scale.
To conclude, the increase in the number of smartphone users will certainly fuel the growth of the coupon industry in India as well as e-commerce. Conversions in the e-commerce industry will be higher due to coupons and big deals from the coupons and deals players. The industry will also see greater partnerships with merchants in the coming years as people search for coupons more than ever.