July 6, 2011

Social Media to E-commerceThere was a time (not long ago) when every new internet company in India started a social network of its own. Things have changed since. Today every one wants to be in e-commerce - more specifically - deals. Reliance’s Bigadda.com offers a perfect example.

  • Bigadda.com moved on from its social media services and transformed into an e-commerce website.
  • Bigadda will now focus on launching an e-commerce business through online (bigadda.com), which has been operational for the last three months in a pilot phase.
  • The website has claimed to have crossed Rs 2 crore gross value transactions per month in June.
  • In 2007 when Bigadda.com was launched, social media networks were the next big thing in the digital space
  • There was a strong belief that local social media platforms would do exceptionally well. 
  • Dominance of Facebook has however faded that belief for most

Growth drivers of digital space seem to e-commerce, gaming and video on demand (VOD). BigAdda.com already have a strong presence in gaming with Zapak and VOD with Bigflix.com. With this transition they plan to cover this third growth driver as well.

The ecommerce market in India

  • The total e-commerce market in India is estimated to be Rs 3,000-3,500 crore with teleshopping at Rs 1,500 crore, Readers offer at Rs 1,000 crore (Teleshopping plus Readers offer is called Alternate Retailing Market), and online at Rs 700 crore.
  • Alternate Retailing Market is growing at 30 per cent CAGR, while online is growing at 50 per cent CAGR.
  • With increasing spending power and aspiration of youth in small towns of India and acceptance of credit/ debit card as mode of online payment, e-commerce will grow exponentially in India.

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