Reliance’s 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.
Commenting on the transition, Rohit Sharma, CEO, Reliance Entertainment (Digital Business), said, “This is a conscious decision to transition Bigadda.com to e-commerce business. The digital space is dynamic and ever-changing. In 2007 when Bigadda.com was launched, social media networks were the next big thing in the digital space, and we believed that local social media platforms would do exceptionally well. However, local social media networks show no potential anymore with dominance of Facebook and other global players. We believe that the growth drivers of digital space are e-commerce, gaming and video on demand (VOD). We already have a strong presence in gaming with Zapak and VOD with Bigflix.com. With this transition we will cover the third growth driver as well.”
Talking on the state of the e-commerce market in India, Sharma said, “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.”
The website will continue to host a blog by actor Amitabh Bachchan. Sharma said, “Fans can continue to read the superstar’s blog daily on www.bigb.bigadda.com as Big B’s blog has an identity of its own and will continue to connect Big B with his millions of fans across the globe.”
Interestingly, the move comes up at a time when Google+ has launched itself into the social networking arena last week to give the already established Facebook some competition.
Facebook’s domination had forced another social network, MySpace, to transform into an entertainment network after running into losses. It has recently been sold off by News Corp because of its increasing losses.