The coupon industry across the globe has evolved over the years and the future is even brighter. More consumers switching from the traditional shopping methods are extensively shopping online. But, the move for such a switch was only possible only with the advent of the coupon industry. Massive discounts, offers, sales, coupons, etc have become the consumers delight while making their purchase. This not only benefits the consumers, but brands too. It widely connects brands with customers, powers purchasing decisions, eventually increasing sales.
Interestingly, the Indian e-commerce market is expected to grow manifold over the next few years. According to market trends, India will be the second largest in the world, just behind the United States. The prominent players are RetailMeNot, SmartSource, etc in the United States and GrabOn, the key player in the Indian coupon Industry.
For decades, coupons have been the focal point of every discussion. The world’s first coupon from Coca-Cola in 1888 changed the world’s perspective, leaving people looking for coupons every time they shop. According to estimates, between 1894 and 1913, one in nine Americans received a Coca-Cola for free, totalling 8,5000,000 free drinks. This today has become the most widely used strategy for brands all over the world to connect with customers. Thanks to worldwide growth of e-commerce. But how is the coupon industry in US and India performing? What is the impact they could make? What are customers actually looking for? Read on to know more.
The US Coupon Industry
The Americans were largely dependent on newspapers for coupons, but within a short period, they were dethroned by their online counterparts. This meant the evolution of digitized coupons. Ever since then, the coupon industry in the US witnessed massive growth year-on-year. Interestingly, despite the Covid-19 impact on the economy, 88 percent of consumers in the US used coupons in 2020. However, this might sound high, compared to 2019, it recorded a 6% decrease, as per Statistica. The massive use of coupons despite the pandemic havoc, sends out a clear picture and potential the industry holds in the near future. According to a survey by Blippr, only 10 percent shoppers have preferred receiving coupons via newspapers. This eventually shows the potential digital coupons hold in the market. In a great development, digital coupon redemptions by gen Xers’ surpassed print by 6 percent from 65 percent in 2020 to 69 percent in 2021. The baby boomers were all guns, whose records jumped from 49 percent to 67 percent in 2020 – that’s an incredible 18 percent high.
As of the gen Xers and baby boomers, digital coupons are much easier to use, compared to paper coupons. For businesses, this paperless form of coupon is cost-effective for various marketing purposes and is more far-reaching.
Some Important Statistics & Facts Of Coupon Market In US
- 88 percent of consumers used coupons in the year 2020.
- 50 percent of consumers said they would prefer discounts and coupons on their mobile devices.
- Nearly 70 percent of customers love receiving coupons, discounts, etc.
- In 2020, 142+ million US adults redeemed digital coupons
- Online coupon users spend a massive 24 percent more on shopping compared to regular shoppers.
- One in every five coupons is redeemed every day in the US.
The US coupon market is known for its unique strategies with several key players transforming the coupon market. Ebates Inc, Coupons.com, Groupon, Amazon.com Inc, RetailMeNot Inc are top online shopping websites that provide its users, a wide range of coupons, discounts and offers to choose from.
India’s Coupon Journey
India too is growing at a rapid pace. According to reports, it is expected to grow from $38.5 billion in 2017 to $200 billion by 2026. Just as we discussed above, it will be the second largest in the world, just behind the US by 2034. What’s more interesting to witness in the year-on-year growth. The numbers have always been up.
So What Is The Major Reason For Such A Growth?
India’s internet population is the world’s second largest at over 749 million users, as per 2020 reports. Taking such a massive growth in consideration, it has potential to contribute to 20 percent of the global market. With increase in mobile penetration, the E-commerce market is also expected to take flight, which would also power the coupon market in the country. The e-commerce industry market value was approximately $50 billion in 2018. And this number is estimated to reach $200 billion by 2027. With more people experiencing online shopping, a large chuck of the share is attributed to the coupon industry. Just as the US coupon market, the Indian coupon market, despite the Covid-19 impact, did not face a downfall, but witnessed significant growth in 2020.
Interesting Facts, Statistics
- Nearly 95 percent shoppers search for deals, discounts online
- 74 percent check for coupons on couponing portals/websites
- 54 percent research a product online before purchase
Reasons For Usage In India
According to several surveys, Indians prefer coupon codes, discounts etc as it helps them save money. With coupons being available for all, sharing them with their family and friends, including its ease of use, are a few reasons for high usage. Of all the segments, the Fashion segment was the most preferred for coupons, followed by beauty and elections. Healthcare, food and dining, too, registered significant growth post Covid-19 relaxations. Sites like Amazon, Ola, BigBasket, Myntra, and Flipkart experienced a rise in coupon usage.
As said, Indians prefer brands/couponing platforms that help them save on their bills. And taking this example, India’s GrabOn perfectly fits our conversation. As of the company, it helped save over 4 billion rupees of its millions of customers since its inception in 2013. Till date, the company has been self-funded, registering growth year-on-year.
Healthcare Coupons On Rise
Since the outbreak of the novel Coronavirus, people started to use online coupons for purchasing healthcare products more than ever due to physical distancing, and Covid-19 related norms. According to several studies, Indians are fearless in making high-value purchases when they are offered offers, coupons and discounts.
Where Do Shoppers Find Coupons?
As of the data analysed from GrabOn, 51 percent of e-coupon and online deals users come from India’s top 6 cities. The other 49 percent come from Tier 1 and Tier 2 cities. Below is the breakdown of e-coupon users in India.
This Is Not The End…
Everyone loves saving when shopping. And when you get coupons and special offers, no matter via which means, you love tapping into every such opportunity. And this eventually, satisfies the very you, increases customers loyalty towards a brand, and eventually boosts its sales. More to it, brands/websites offering coupons will become part of a shopper’s life. However, over the years, experts opined that the coupon industry would be a thing of the past, thanks to various digital solutions — that’s hardly the case today. The industry is booming to great heights, and so are the savvy shoppers.
So, got some coupons?