Social Media to E-commerce - Favourite business model of Startups has changed
There 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.