February 19, 2007

AllIndiaDeals : Cheap(er) deals online

Cheapest Deals online
Ever thought about how much proportion of the massive Indian population shops online?The answer to this question would soon follow.There are not many Indians going online and shopping but the trend is soon changing.One of the most powerful revenue models in the internet industry is advertising and you can find an explanation to these terminologies from Anurag Gupta's Blog

Just search for "Online Shopping in India" in Google and you would be surprised to see 19,800,000 results.With so many shopping portals in place,the choice of any one of them becomes difficult and leads to the following questions:

Q. How much percentage of the massive Indian population is connected to the internet and what is the growth?
There are 38.5 million Indians online today. The Internet offers an audience that will grow to a 100 million users by 2007-08. Internet & Mobile Association of India (IAMAI) forecasts that e-commerce transactions will cross the Rs. 2000 crore mark (2006-2007) which translates into an increase of over 300% from financial year 2004-05.

Q. Where is India with respect to Online Shopping?
Google has a very interesting study about the online shopping trend and where is India compared to other countries in the world.Well,definitely from the trend,we can say that India has to catch up sad

Trend of online ShoppingQ. Which are the different players and what different strategies selected few are following?
I just happened to see some of the sites mentioned in the Google search
a. Ebay India
b. India Plaza
c. IndiaTimes Shopping
d. I'm Wanting
e. FutureBazaar

Just kept me wondering,is there any place which provides me the best of the best deals online?.This is where I came across AllIndiaDeals , a shopping portal with a difference biggrin

What is special in AllIndiaDeals?
a. As mentioned in my previous post on CampusChai, from a naive user point of view,the user interface of a site is very important.The end user does not want a site cluttered with Ads,which makes life difficult to search for the actual content.AllIndiaDeals have got their fundamentals of web programming correct and have provided an excellent user friendly interface.

b. AllIndiaDeals is a place where you can get special discounts on any product which is called as "Lists Price" and yes,the discounts are also very high.Have a look at the discount in the image below
Excellent deals on AllIndiaDealsc. Finally,users can find their favourite content at a cheaper price without searching on different sites which is the biggest USP of AllIndiaDeals.Take the same example for "Airfares in India" and it is difficult to know the comparison of fares(of a single flight) offered by different online travel portals like MakeMyTrip, ClearTrip etc on the same flight.But there are players like Ixigo(which was showcased in Proto.in) which has understood the changing consumer needs and this would soon be a reality.AllIndiaDeals also falls in this category and they have trult understood the changing consumer needs.

Strategies AllIndiDeals need to employ for further growth:
a. It would always be more difficult to convince the Indian audience to go online and shop and this is where the entire team of AllIndiaDeals has to take a plunge and try to be more innovative not only in their idea but also the approach.Remember,Indian audience is very different from the US audience and this is where their should be and remain in future.

b. With so many players coming into the online shopping market(compare this with "A Blog is born every half a second),competition would be tougher and keeping the same service(maintaining the excellent discount offered on items) would always be a challenge.

c. It is becoming extremely important to understand the SEO fundamentals since,search results are becoming more and more important.It always helps being in the sponsored link in Google Search. eg. My blog got more traffic when Google search results for "Himanshu Sheth" had my blog as its first result(now I guess my blog comes at the forth place) biggrin

Sponsored link on Google Helpsd. In this Web 2.0 age, it has become more and more important to use the power of Social as well as Business networking. Social networking sites like Orkut,Yaari,MingleBox and Indian business networking site TechTribe(which would also be helpful in getting funds) would definitely help to get more traffic as well as scale up the business of AllIndiaDeals.

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15 Comments:

At Feb 19, 2007, 8:38:00 AM , Blogger SPM said...

I come from an e-retail background. In fact, that IS my business. Check out my site, www.homeindia.com.

A concept like AllIndiaDeals is in the right direction. However I wonder if what is easily possible to be published on a website, is not easily accessible to a consumer anyway? It is unlikely that a 2-3% benefit will draw a very large number of users online. There will have to be more interesting strategies with regards to making a success of e-retail in India.
Some of our own experiences are highlighted in a recent post at ileher. Check: http://www.ileher.com.

- Sanjay Mehta
http://rdfan.blogspot.com

 
At Feb 19, 2007, 10:28:00 AM , Anonymous Hiral Shah said...

Hey, Himanshu

After weekend, on every Monday morning, I am now use to with more then 5 post you must have post on your blog. I must agree your mind really running for your passion. I read the whole article about online shopping. I am really surprise to see the figure of online shopping sites as well the statistics you have mentioned worldwide online shopping.
Also, as you mentioned, I searched for “Himanshu Sheth” on Google. Upto now I was just said you like that; that” I am not big like you, “but after seeing all your sites on google’s first page. I really realized that I was not joking, it is true. You are now going with gr8 speed about your blog & about your passion. What can I say now? I lost my words or rather I used all the words up to now to praised your efforts.


Regards,
Hiral

 
At Feb 20, 2007, 1:01:00 AM , Blogger Himanshu Sheth said...

Hey SPM,
Thanks for stopping by this blog.I did check ileher.com and definitely it is giving more insights into the business than my article ;-)

Good experice shared on your blog as well.

-Himanshu

 
At Feb 20, 2007, 1:02:00 AM , Blogger Himanshu Sheth said...

Hey Hiral,
Do not praise me so much ;-)I am an ordinary person but trying to achieve some extraordinary things which seemed to be impossible some time back ;-)

-Himanshu

 
At Feb 20, 2007, 4:03:00 AM , Anonymous Nidhi Modi said...

Himanshu,

Thanks for sparing time to put forth an insightful review about the online shopping scenario in India.

Sanjay - I feel more consumer would like to visit our website if they get additional monetary benefit. We would like to pass the commission to the customer if the merchant is ready to pay some referral/commission/CPC. Referral marketing and CPC based model is still in the nascent stage in India, hence we are trying to educate the online merchants about the benefits of this model and the amount of traffic/sales we can drive to their business.

Also, recently we introduced forumto disccss deals and fun shopping quizzes to make our website more interactive and interesting to users.

Himanshu, you are going great with your blogs! Hope to see more such reviews in the offing.

Thanks again.

Cheers, Nidhi
www.allindiadeals.com

 
At Feb 20, 2007, 4:20:00 AM , Blogger Himanshu Sheth said...

Hey Nidhi,
I really found AllIndiaDeals very different from the other online shopping portals and you are doing a great job!!!

I would definitely buy something very soon from AllIndiaDeals.

-Himanshu

 
At Feb 20, 2007, 1:26:00 PM , Anonymous Aloke Bajpai said...

Nidhi,

AllIndiaDeals is a great place to start one's online shopping search. Good to see a clean interface and intuitively placed menus, info & links.

Like you mentioned, iXiGO is going to create greater transparency and flexibility for an Indian end consumer's quest to find the perfect deal (airfare, hotels, tours, activities etc.).

Our approach is consistent with yours and we will strive to create a more efficient and personalized online marketplace.

Keep up the good work,
Aloke
www.iXiGO.com

 
At Feb 21, 2007, 12:03:00 AM , Blogger Himanshu Sheth said...

Hey Aloke,
I definitely liked IxiGo in Proto and look forward to its official launch.

Thanks for landing up on this blog.

-Himanshu

 
At Feb 21, 2007, 2:52:00 PM , Blogger SPM said...

Nidhi,
Just to discuss the model somewhat, here are the few questions that I would have:
1. Is the model going to be to just focus on specials, or will it evolve ultimately to a shopping comparison site?
2. Does it depend on merchants to submit their deals, or can there be an automated mechanism to scan and pick up details, and self populate? How will it seriously scale up without the automation?
3. The key question that I have for India e-retail is about WHAT factor will drive serious adaption to e-retail? And here I am talking of say, a million customers and not a few hundred or a few thousand. How will that happen? They are still enjoying the air-con of organised retail, everything is nearby, great deals are also offered offline, sales are always on, they touch and feel the product, Indians have not done much of catalog shopping either, and then there is the huge VAT factor for retail orders to be delivered across the country. With all these factors, can we find a really compelling factor that will make e-retail happen in a hurry?
Kind of like how online travel has taken off...

Above points are only meant for discussion. I do have a lot of respect for allindiadeals.com.

- Sanjay

 
At Feb 22, 2007, 1:24:00 PM , Anonymous Nidhi Modi said...

Sanjay,

Thanks for starting a great discussion. My attempt to answer your questions...

1 - allindiadeals will primarily be focussed on specials (deals and discounts). However we will continue to add more features like forum, Quizzes, Contest etc to attract more visitors. Regarding the shopping comparison site, we are actively working on it and will be launching it soon but under a different name.

2 - Last month I had a discussion with ILeher team regarding the same. Below is my view on this issue.

"Crawling might not be a feasible solution as our main aim is to publish the best deal for the consumers instead of all the available deals. So I guess human intervention is required.
However one can invest in creating intelligent crawlers and come up with a deal comparison site. But whats the ROI?

I completely agree to you that we cannot scale up unless we automate the process. We have started asking for feeds from the merchants and it seems to be working with small sellers but not yet with large merchants. I am sure they will be doing the same soon."

You can check the complete review at here.

3 - Pricing and Convenience. As per my understanding e-retailer’s with the advantage of low operating cost will provide products at a much cheaper rate than the offline retailers.
To remain competitive and to tap the Internet shoppers, offline retailer will have to create an online presence like Pantaloon Retails did with Futurebazaar.com. The day is not very far when you will see different pricing for online and in-store for the same product. Like Citibank charges Rs.100 for a DD when you visit their branch which is free online with free courier to anywhere in India.

Convenience - With the hectic lifestyle, increasing traffic and parking issues more people will opt to shop online.

Now the onus is on the online merchants to fulfill consumers expectations when they shop first time online.

This is my viewpoint, you are a seasoned player in this game who survived the dotcom doom... Hats Off To You!

Regards,
Nidhi
www.allindiadeals.com

 
At Feb 22, 2007, 1:37:00 PM , Anonymous Nidhi Modi said...

Aloke,

Thanks a lot for encouragement... thats what keep us going.

I am sure iXiGO will be a great site. I look forward to it official launch.

Thanks,
Nidhi

 
At Feb 23, 2007, 11:54:00 AM , Blogger SPM said...

Nidhi,
Online retail in India is certainly an intriguing space, and there are a lot of thoughts and a lot of theories which we all have, and yet, we have to see what really works or doesn't.

If I have to convince myself in favour of the eretail model, yes, I would count price and convenience to be factors.

And if I were to play the devil's advocate, I will wonder as to really, what percentage of the consumers really feel offline shopping to be a pain at this time? A large business cannot be built on just a tiny audience's wish list. And as regards price, HOW can we make it cheaper? That is a bigger challenge that we have seen, in practise, and one can have a seperate debate or a posting, just on that subject. It is nice to say that price will drive online business, but to get the price down in the online world is very challenging.

The Citibank case is akin to the e-travel space, in terms of the cost comparisons and savings. But for product sales, things are just a little more challenging, from what we have seen.

Still we are all looking for that magic potion which will finally do the trick :-)
- Sanjay

 
At May 19, 2007, 9:45:00 AM , Blogger Akhilesh said...

Most of the shopping sites I have visited in India are all cluttered with so many advertisements that its becomes hard to distinguish out the products being offered on sale from the ones being shown as an Ad. They are just to many of them.

I would give a lot of points to 4 Genius Minds who have an online store at www.4gmonline.com

Not even one single advertisement, just hard core shopping. It makes it a lot easier to concentrate.

 
At Aug 20, 2008, 3:42:00 PM , Anonymous Naaptol Online Shopping said...

Dear Sir,
Please add http://www.naaptol.com also in your list of amazing shopping sites.

 
At Nov 1, 2008, 4:18:00 AM , Anonymous Anonymous said...

check
www.dealsghost.com

 

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