The business paradigm has evolved a lot with the inception of online business. The brick and mortar model of business in many industries is struggling to sustain itself in the digitized business environment. Online business has disrupted the traditional market in a significant manner. Today, online marketers are coming up with new strategies like promo codes and discounts, which make the products attractive and irresistible.
The retail market in India is estimated to be around $625 billion. The valuation of the eCommerce marketplace is around $40 million. However, recent trends reveal that the eCommerce industry is rapidly expanding and in the coming years, it might overtake the offline business. In the near future, the traditional markets are likely to face stiff competition from online platforms.
Take Flipkart’s Big Billion Days for instance. The eCommerce giant registered sales worth $100 million in just a span of 10 hours. People love shopping online as they can choose from a wider range of options. Besides, they can use promo codes and discount codes, available on various websites. Eventually, they get a better value for their investment.
Statistics of Online Business
The retail space in India stood at $3.8 billion in 2009. By 2014, the industry grew to $17 billion and a couple of years later and by 2016, it was a $38 billion industry. It has been estimated that by 2022, the Indian eCommerce industry will grow to $150 billion. Online businesses in India are being fueled by unique marketing strategies of the leading platforms. Transparency in communication and good deals and discounts are among the key factors leading to their growth. Between 2016 and 2021, the online CAGR (Combined active growth rate) will reach 23%.
Presently, 60% of the online marketers are analyzing customer journeys to enhance the conversion rates. All these figures explain the growing potential of online business in India.
Statistics of Offline Business
With the popularity of online business, a large section of business houses is focusing on their online presence. This is the secret to keep the customers engaged in the coming years. However, a recent trend reveals that companies are combining their online and offline platforms while reaching out to the customers. This enables them to provide spot-on products and services to customers as and when they need them.
An analysis carried out by Boston Global Consulting revealed that 5% of the purchase made in the retail sector of India accounts for 16% of the total value of Indian retail. This is the impact of B2B experience!
You must have noticed how online stores like Lenskart have come up with offline franchises. They are willing to reach out to customers who are not willing to make online transactions. The traditional industry still dominates the digitized business platform by $20 trillion. However, in order to remain competitive in the industry, offline business firms need to come up with fresh marketing strategies.
Why are coupon websites becoming popular among shoppers?
One of the most strategic ways to touch the customers is to provide them with coupon codes. From reputed companies like Flipkart and Amazon to eCommerce startups, business firms of all sizes are utilizing this strategy to attract customers.
The electronic coupon codes come with a barcode, which the users can scan on their smartphone and use them on online stores. At the time of checkout, they apply these coupon codes to avail discounts on the products they purchase. Some customers have become addicted to coupon codes and turn to websites where they can avail the best products at discounted prices.
Presently, several third-party websites are offering these promo codes to the customers. The shoppers love visiting these portals to collect the codes, and in the process, they can avail the products at discounted prices.
A study carried out in recent months revealed that 71% of the respondents purchased online items through mobile devices, due to the availability of discount codes. Therefore, it appears that these promo codes and discount deals can increase the sales of eCommerce platforms. Marketers find it cost-effective and easy to create mobile coupons. Presently, a number of online sites are providing coupons. This has led to an increase of 26% in the basket size.
Here are some other interesting statistics for you:
- In case customers have customized coupons, 39% of them are likely to spend more
- 42% of mobile users have already used these coupons in the past
- 60% of the buyers are likely to make mobile payment to avail the benefits from coupons
A reliable source reveals that between 2015 and 2016, the number of people using discount coupons increased by 11%, from 92.6 million to 104 million.
How is online business dominating offline ones?
Online business has several strategic advantages over offline ones. Firstly, in terms of exposure, companies carrying out businesses online enjoy global recognition. The users can log into the sites from any given location, which is one of the key reasons for the success of online retail firms.
In terms of customer satisfaction, online business houses are striving to catch up with offline platforms. People do not have the opportunity to examine the products physically when they make the purchase online.
However, online portals are changing their policies in order to make up for this disadvantage. For instance, the customers can get easy return policies for 30 days or so, when they make any purchase. In case they are not satisfied with the quality of the product, they can get a seamless refund.
One of the most interesting aspects leading to the success of an online business is their ability to give away products at discounted prices. The users can apply promo codes and coupons, through which they can get good discounts. It is obvious for people to make such purchases, considering that they need to spend less. In recent times, a number of dedicated websites for online codes have come up.
To Sum it up
If the trend continues, online businesses are likely to outperform their traditional peers in the coming years. An innovative marketing strategy and a wide range of partnerships in the industry is the recipe that’s going into brewing the success of the online sites. The internet is a treasure trove of opportunities; trades worldwide have not only understood it but also leveraged it to the utmost.