Share rather than buy - The new online business mantra
By Renjith VP, SiliconIndia   |   Friday, 24 December 2010, 13:38 IST   |    2 Comments
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Share rather than buy - The new online business mantra
Bangalore: Internet is a medium which is harnessed to its very core in such a short period of evolution. The primary concepts of marketing communications have all been saturated and online marketers are brainstorming to crack out unconventional ideas. Even the notion 'survival of the fittest' seems to be reminiscence of a competitive past. To this scenario dominated by social media, dawns a new pattern or a concept - sharing. Today online players are keen to motivate that factor in customers, most of them who choose to hire (share) things rather than buying them. The online world is undergoing swift evolution and the attitude of its critical mass is also changing. From youngsters to families, everyone is looking for a possible deal which will bring them maximum profit or earnings at minimum cost. This is the factor which gave Groupon a new lease of online market and with it a new stride to online marketing. "A great deal everyday" - that's what makes Groupon a company everybody is looking forward to. Following its footsteps came Indian versions like MyDala.com and snapdeal.com which makes a great deal for its online customers. Be it restaurants, bars, films, sports, there is a money-saving deal everyday that these sites send to its members via e-mail, Facebook or Twitter. It could even be a simple 50% off on a spa treatment. However, the offer is valid if a certain number of people opt for it. So, if you find an interesting deal, you need to 'share' it with your friends. If the required number of people doesn't choose it, the offer expires. MyDala.com, the New Delhi based site has already raised 1.1 crore in angel funding and the site has a subscription of 2 lakh members and claims to have sold 100,000 vouchers. Anisha Singh, the CEO says it has a gross business of nearly 1 crore so far and 2 crore in terms of savings for customers. Who doesn't love to save money and this idea is wildly pacing forward. Another online portal which started in U.S. and is gaining favor in countries like India with a huge base of internet users is ThredUp.com. This is an interesting website where you can send a box of clothes your child has outgrown and swap them for another box of clothes that fit your child. As per the site, "The only time you ever pay is when you've found a box of clothes you want, and for that, you pay $5 + shipping." A box-full of clothes for just $5 is not a bad deal! When you hear that the company has already raised 6,30,28,000, which is not a bad deal and which also brings its total funding to 7.6 crore. A startup couldn't have asked for more. It's already got 12,000 members, saved families an estimated 88 lakh rupees in children's clothing, all in a year's time. The old adage 'sharing is caring' seems to fit more precisely to this online evolution. Online players now find themselves successful when they make their customers feel successful and satisfied with offers. From a consumer's point of view, it's much easier to hire (share) than buy. That is why web portals like Netflix gained overnight fame among its consumers. The site offers flat rate online video rental -by-mail which gave them the iconic status by just providing idea to share DVDs. Similarly bagborrowersteal.com offered to rent bags and other fancy items which also gained much momentum. With a booming variety of needs, these out of book practices which add up to common man's life are the ones that will survive the online future.

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