In a recent move which can be termed as an aggressive marketing strategy, Groupon India has teamed up with Tata owned Croma (electronics retail chain) to sell gadgets at exclusive rates and heavy discounts.
Cashing on the inventory and logistics capability of Croma, Groupon will manage operations and customer care of the overall sales process. A new micro-site has been created under the domain of Groupon, which has been designed in a way which equally reflects both the brands: Groupon and Croma.
As reported by TechCircle, Groupon India CEO Ankur Warikoo is very keen to penetrate the gadget market in India, and this partnership deal is just the start.
When I checked this new microsite, I found several attractive deals such as iPad 2 at Rs 26,500 against the normal price of Rs 36,500; Toshiba 500 GB hard disk at Rs 3099, against the normal price of Rs 6150 and lot more. As of now, Groupon is focusing on high end popular gadgets mobile phones, tablets, digital cameras, hard disk, hardware and peripherals and even electronic shaver.
This new gadgets microsite from Group India is in continuation with their plans of segmenting different niches and concentrating on providing quality deals and offers for these sub-niches. In the last few months, Groupon India has launched several such microsites, selling niche deals and offers such as Fashion, Weekend offers, Health Care and City Getaways. Going by the popularity of these deals and the buzz it creates, we can assume that this plan is going in the right direction.
Groupon, which was founded in the year 2008 by now-ousted CEO Andrew Mason, was valued at $1.35 billion in the year 2010. At that time, Groupon was on its way to make fastest ever $1 billion in sales; which would have been “faster than any other business, ever”.
Groupon made its Indian entry by acquiring SoSasta in January, 2010; a deal which was famous for glitches and unfortunate incidents. In September, 2011, SoSasta was rebranded as Crazeal; and after exactly one year, that is October, 2012, Crazeal was renamed as Groupon.co.in and the present site was officially launched.
Back in the US, the parent company Groupon’s stock prices and quarterly performance is not something which the investors would be very proud of. When its IPO or Initial Public Offer was launched in June, 2011 with much fanfare and hype; each share was valued at $20. Currently, each share of Groupon is worth $6.38. There have been several reported instances of financial irregularities as well, which has further reduced investor’s confidence and trust in the brand.
But, this $4 billion+ company is refusing to lie low, despite some expectations-mismatch and missed quarterly results in the past. We all know that Groupon introduced coupon and deal based business which practically disrupted the ecommerce sector and opened up an entirely new niche, clones of which are still created in every geographic area.
It would be interesting to see, whether this new Groupon initiative of selling gadgets with Croma’s assistance will work or not. We wish for the best!