Deals to win

 

Retailer: What has prompted you to launch Mydala?

Anisha Singh (AS): Mydala’s genesis was to provide merchants with a pay for performance model which did not require them to shell a lot of money to promote themselves upfront without being able to track the performance. Accountability of marketing spending and Return of Investment tracking is what we have built our business around.

We are the pioneers in group-buying websites in India. Mydala itself means “my group”. The idea was to provide deals to customers in a group setting. We have now reached a subscriber base of more than 10 million people who follow us regularly get great deals from mydala.

Retailer: In this competitive market, in what way do you think Mydala does actually stand out? How is it growing?

AS: Our Mybuzz platform (mybuzzmarketing.com) platform allows merchants various options to promote themselves from mobile to TV to the internet. It allows small and medium and mainly local merchants to e- and mobile enable their products and services, build a brand, get visibility and gain access to a much larger and targeted consumer base.

With Mydala, the merchant has to pay nothing upfront to us and we are helping him with acquired customers. We have also added a merchant panel at the backend which lets the merchant track and see what his ROI looks like on Mydala.

Retailer: What’s your perception about the Indian consumers? Could you map out any sort of evolution?

AS: There has definitely been a shift in the consumer attitude since we started the company. More and more people are coming online via mobile and their PCs. Consumers are more open to transacting online. All this being said I think the consumer has become so sophisticated and fast that we need a careful match to give users what they are looking for. Mobile is becoming more than just a word for the handset – consumers check on things and want to access and get deals, offers, learn about promotions while they are on the go . It’s the “NOW” culture at its best.

Retailer: How is this deal concept catching up in India? How do you promote the site?

AS: When we started no one knew group buying or deal sites as we were the first ones. Behind us came a slew of sites, overtime, like it happened in the online travel industry. the market has matured and most companies that started without a long term vision have shut down or moved out of promoting the small and medium service business.

More than promoting our site we promote the merchants that want to use Mydala as a platform as our offers are showcased to a large number of audiences every day, we do this via a very large alliance network that we have.

Retailer: What is the response of tier I and II cities towards such an online deal concept?

AS: The response has always been good. It has been a pleasant surprise to see how tier II markets are growing. We are getting a lot of traffic in the tier II towns, especially through mobile internet. In hindsight, it is not surprising given the low penetration into tier II towns, and the pent up demand driven by the growing consumer base.

Retailer: What sort of deals pulling the maximum number of consumers?

AS: Our platform is built to match supply and demand. Since we do a lot of data analytics and targeted mailing, we reach the right customers for the deals that interest them. For example, you and I might not care for a tattoo deal and might like an activity deal but another user might. All this is showcased and promoted on Mydala in a targeted manner. That being said – food and health and beauty are popular with all.

Retailer: Does market slowdown affecting Mydala in any way since discretionary expense is falling?

AS: In a way it works in Mydala’s favour. Businesses prefer to route their marketing efforts via Mydala which unlike other traditional marketing media requires very little investment upfront and is a pay for performance model. Consumers too like the offers and are more apt to come on mydala looking for deals on everything.

Retailer: What are your basic metrics for partnering with a brand or service merchant?  Tell us something about your quality control programme.

AS: We have a complete merchant verification cycle that happens before a merchant gets showcased on the site which includes a four-step screening process even before the merchant goes to an assigned merchant relationship manager, who then takes over and builds the relationship with the merchant. We also give business a back-end panel that lets them see effectiveness of their campaign.

Retailer: What are the challenges you are facing in running a deal site?

AS: The one challenge I keep getting asked for is how tough the competition is and/or the funding situation is for companies in our space. We stay focused on our business and let our performance speak for itself. Market sentiment and competitors is something we have no control over, but as long as we are focused on our business, everything else will take care of itself. Unlike in 2000 last time around when a lot of companies got funded for no reason, this time around, investors are taking a long hard look at fundamentals, before reaching out for their wallets. That is good for the eco-system in general.

Retailer: Where do you recommend amendments in terms of government policies? Any comment on FDI policy?

AS: We welcome FDI in retail as it will bring funds as well as retailing or supply chain experience into the e-commerce and retailing sector, even though it is in its early stage in India. Of course, it will intensify competition, but it is good as it will improve your performance and the ultimate winner is the consumer.

Retailer: Do you think we’ve enough talents or required skill sets for online business? What sort of training you impart to your employees?

AS: Our team is young and, therefore, we focus a lot on mentorship programmes and quarterly training for several of our teams. We regularly have one-on-one team huddles to figure out and address any confusions, questions or concerns. We are in the process of incorporating a job hop – where internally you shadow another team for a day, work with them hands on to better understand that there are challenges and situations that each team is resolving. It makes us more respectful to each other. Of course, everyone has to take customer service calls.

Retailer: Three years down the line where do you like to see Mydala be?

AS: We would like to be the go-to marketing platform for each and every B2C business in India. Our surge in revenue growth will happen from second half 2012, and we are looking to become profitable in two years time. We are targeting `100 crore plus net income in three years with huge profitability going forward.                

 

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