Indian e-commerce market set to cross Rs 46,000 crore with a 47% growth in 2011.
The festive season has failed to give a fillip to online daily deal sites this year, with most of these showing a decline in user traffic. According to ViziSense data, leaders in the segment, Snapdeal and Mydala, have seen a drop of 46 and 34 per cent, respectively, in October.
According to Amit Bhartiya, GM, ViziSense, "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." ViziSense, an online audience and ad measurement platform, has reported that while Snapdeal had 9.6 million users in September, the figure fell to 5.2 million in October.
But, Snapdeal CEO Kunal Bahl reasons it was the temporary halt in all marketing activities during the period that accounted for the slower traffic. "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," claims Bahl.
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).
Daily deal sites maintain they have been quick to reflect consumers' interest in discounted products. Snapdeal launched a mobile phone and timepieces' section four months back. They have now expanded to include personal care products, apparels and perfumes. With the holiday season round the corner, it hopes travel deals will help the site in fuelling traffic.
Another deal site, Mydala, too, is banking on the travel deals' section and more recently the wedding shoppers'. "We saw that around Karva Chauth and Diwali, people tended to buy deals for gifting. Keeping with this, we have included a wedding section that has everything from gifting to honeymoon to clothes. With easier categorisation, users don't have to search endlessly; they can get all in one place," explains Anisha Singh, founder and CEO, Mydala.com. Mydala saw a drop of 34 per cent to 3.1 million users in October from 4.6 million in September.
Singh claims the data is correct, but sales have gone up since then.
"The traffic we lost can be dubbed irrelevant, like window shoppers not being counted anymore. More, Mydala has collaborations with mobile operators to show users the deals they might be interested in. This has led to an increase in overall sales, with as many as 18 million users coming through the mobile platform," adds Singh.
IAMAI estimates the ecommerce user base in India is 10 million. It adds, "However, it is important to note that only a fraction of the country's people engage in e-commerce. Fortunately, access to digital payment solutions such as debit and credit cards, and the ability to use these among this section of people is considerably higher."
IAMAI also predicts the overall potential for e-commerce will increase from 146 million households in 2009-10 to 229 million in 2024-25.