E-commerce competition is quite high these days; every start-up is trying to come out with new ideas to mark their presence at rank #1. It’s getting difficult day by day for players focusing on single vertical to stand against the funds, resources and strategies of biggies. Recently, to beat the monopoly of BookMyShow in Movie Ticketing Domain, Paytm announced tie-ups with PVR, INOX and multiple other cinemas to sell movie tickets on its portal.
Not to remain limited to movie ticket booking only, Paytm is trying to capture the market in related domain of movie entertainment. Consumers would be allowed to play for food and other value added services through their mobile wallet once they reach the movie hall. By introducing these payment options, Paytm would be able to capture the related offline market as well.
As a customer acquisition strategy, Paytm will provide cashback deals on tickets to motivate consumers to book via its portal.
Cinemas would be able to reach the large loyal consumer base of Paytm, while Paytm would be able to diversify its portfolio on online service and get commission per sale of ticket. For first quarter, Paytm is targeting to sell 30,000 tickets and quite aggressive target of 100,000 tickets by the end of the year.
Biggest rival of movie ticketing domain, BookMyShow is having on average 42 million visits per month and 4.5 million bookings per month. The revenue breakup of BookMyShow is – 60% form movie ticketing and remaining 40% from sports, live shows etc.
PayTm’s investors include Ant Financial, an affiliate of Alibaba Group, SAIF Partners, SAP Ventures, Reliance Capital and Silicon Valley Bank while BookMyShow is supported by SAIF Partners, Accel Partners and Media Firm Network18.
Learning for entrepreneurs is to first stabilize the business model in one vertical and then capture all the related domains to maintain the monopoly in that particular business. Entrepreneurs focusing for their startup to get acquired should develop something which biggies either can’t develop in short span or ignore the loyal consumer base and popularity.