The concept of collective buying has really taken the world by storm over the course of the last one year. Inspired by the idea of Groupon (United States), and SnapDeal (India), Groupin.pk has been launched in Pakistan as an online discount shop in order to provide the best exclusive deals in town. Though there are many differences in the socio-economic conditions of United States and India, SnapDeal has still been able to hit it big, acquiring a huge customer base in India.
Discount Shops and the South Asian Consumer Markets
SnapDeal offers exciting discounts in almost 50 cities and claims to hold a user-base of more than 1 million individuals across India. The revenue generated by this portal has been up to the mark as a result and the entrepreneurs have decided to expand their investment plan to above 12 million for this year, which is still expected to rise.
Similarly, Groupin.pk has been introduced as a pioneer of this concept in Pakistan. Many are analyzing the situation and opportunity as to whether it is feasible for customers in Pakistani markets or not. If we compare the market scenarios of SnapDeal India and Groupin Pakistan, we can find numerous similarities such as:
The socio-economic factors and constraints in both countries are almost the same. Both countries are developing economies, with more manpower and less work. Moreover, international recession, poverty, low-purchase-power and high-inflation rates have contributed towards discount oriented thinking and more bargaining behaviors in both countries.
Cultural Values & Norms
Similarly, both countries share same cultural values, norms and pattern of behavior due to the geographical proximity. Most of the buying decisions are based on price and maximum benefits a product or service can deliver.
Even the religious beliefs in both countries have a spiritual factor involved also influencing buying decisions, such as shopping on religious festivals and occasions.
The weather situation in the South-Asian countries is almost alike. The seasonal effect on shopping and spending patterns resembles in great many ways.
All these factors contribute greatly to the way SnapDeal operates in India. And keeping SnapDeal’s success in mind, this amazing idea is expected to rise in Pakistan in a similar fashion, especially with Groupin.pk’s emphasis on 50 – 90% discounts in all major cities and much more.
Groupin.pk has recently been introduced in all big cities including Islamabad, Lahore, Karachi, Peshawar and Quetta. The portal is rapidly increasing its user base and is planning to expand its services all over Pakistan. Now the question arises whether it will make a strong user base in the country or will it become a failure?