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American deal site Groupon made noise in the cyber world today by launching a mystery offer across 78 cities in India. The company claimed it was a first in India, though Groupon went live with mystery deals in the US early this year and Malaysia a few weeks ago. Known for its sales gimmicks, it had shocked and thrilled Indians with its Rs 9 a kg onion idea last month.
The mystery deal, which started at 1 pm Friday, will last as long as the stock which is 850 surprise packs. Within 90 minutes of the offer going live on the Groupon India site, around 200 packs were sold. In Malaysia, 2,500 mystery boxes were sold in flat four hours.
This deal was about a buyer paying Rs 199, and not knowing what he’s buying. But the assurance given was that the actual price of the product that the buyer would get in about ten days would be “way way higher” than Rs 199 and that there would be three items in the pack.
Groupon India CEO Ankur Warikoo told Business Standard, he tried his luck too. And unlike the other buyers who would know what’s in the pack after ten days, Warikoo didn’t have to wait. His kit contained a branded bedsheet, an ice cube bucket and a high-end mobile phone battery. He estimated the total price at over Rs 5,000.
Even as there were questions around the legality of a deal of this nature where a consumer did not know what he was paying for, Warikoo pointed out that the company had vouched for fully-functional, original, branded products from legal sources. He also said there were no hidden or additional charges. The assortment could include apparel, home appliances, accessories, stationery, mobile phones, and even golf sets.
Groupon wanted to create a buzz around Diwali time and got talking to its product merchants. How does the company manage to sell products of much higher value at just Rs 199? Relationship with merchants helps, and also there are products which are slow sellers, said Warikoo. And sometimes, the packaging is torn or damaged, he added. “We had an entire team deployed at Groupon to pick up stuff from merchants, to create excitement.”
At the end of it, such deals often help companies to make loyal and repeat customers. The Rs 9 a kg onion had been able to sell 22,500 kg of the vegetable over a period of seven days in October. The next bizarre deal? “Im tempted to go back to onion once more.”
