Reliance AGAG discontinues social media services; sees no potential anymore with dominance of global players.
BestMediaInfo Bureau | Delhi | July 5, 2011
Big Adda through its social media services had created a very strong brand connect with youth in Tier II/III cities of India with 3.5 mn out of 5.5 mn registered users coming from the small towns of India. Big Adda has leveraged its astute understanding of consumption and media habits of this audience by launching e-commerce business through online (bigadda.com) and readers offer under Bigadda Shop.
Big Adda E-commerce operations have been operational since last 3 months in pilot phase and during these three months Big adda has witnessed fastest ramp up of orders compared to any recent e-commerce player in India. Big Adda has crossed Rs. 2 cr gross value transactions per month in June and with its aggressive plans for next months is poised to be one of the leading e-commerce player in Indian e-commerce space with its combination of readers offer and e-tailing business models.
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 Jump Games and VOD with Bigflix.com. With this transition we will cover the third growth driver as well. The total E-commerce market in India is estimated to be 3000-3500 Cr with teleshopping a Rs.1500 Cr market, Readers offer Rs.1000 cr market ( Teleshopping plus Readers offer is called alternate retailing market ) and online Rs. 700 cr market. Alternate Retailing Market is growing at 30% CAGR while online is growing at 50% CAGR. With increasing spending power and aspiration of youth in small town of India and acceptance of credit /debit card as mode of online payment, e commerce will grow exponentially in India,” added Sharma.
He also added, “Fans can continue to read the superstar’s blog daily on www.bigb.bigadda.com as BigB's blog has an identity of its own and will continue to connect Big B with his millions of fans across the globe.”