Jio-Facebook to open the door for $2 trillion markets
Mukesh Ambani and Mark Zuckerberg join hands to contribute to India’s digital economy. The Jio-Facebook platform may actually create opportunities for a market which is likely to reach $2 trillion or even more by 2025. Jio-Facebook to open oppurtunities for $2 trillion markets.
Bernstein said in a report that “Reliance Industries and Facebook are building an ecosystem each big enough to provide important and discrete services to the consumer adding that the core services of the platform viz retail/commerce, payments, and content, advertising and others, together have the potential to reach $2 trillion-plus by 2025.
Retail and commerce is expected to touch $1.3 trillion, payments $700 billion and content, advertising, and others $70 billion.
Recently, US-based tech giants have shown an increasing
interest in India’s digital market with the country having the second largest internet user base after the US and China.
India also has about 600 million internet users and second-largest smartphone user base at over 700 million. Other than
this, India also promises e-commerce opportunity with online shopping in the country growing at over 30% CAGR).
The platform model is not a new concept with Chinese Alibaba already scripting a success with it. For Alibaba, e-commerce has helped capture the digital
advertising market and digital payments as well.
RIL and Facebook can also capture a large market share across services such as commerce, payments, content & advertising.
Further, Reliance Jio and Facebook will also be benefitted by the coronavirus situation as e-commerce/online grocery, digital payments and digital content are expected to win overall.
A shift in customer behaviour in terms of digital adoption across these categories is also a bonus.
Facebook and Jio had announced a multi-billion dollar deal in April this year with Facebook pledging $5.7 billion to buy 9.99% stake in Reliance Industries Ltd.’s telecom arm Reliance Jio.
Both companies look to enable local Kirana stores and empower India’s digital ecosystem with the deal. Jio-Facebook to open the door for $2 trillion markets.
–Simran Oswal, Lead Author at EarthlySpeaks.
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