BigRock backed by Directi founder Bhavin Turakhia goes public with high budget TV ads and direct to market advertising. In the process he probably wants to bypass the huge channel of resellers, web designers, software cos and other hosting companies and go directly to consumers. Its a risky gamble but is backed by deep pockets.
The question is whether India is a ready for a direct to consumer, Dell type, hosting reseller. Does BigRock have the budget and the chutzpah to keep a sustained level of advertising going over the long term. In a highly commoditized market do the margins justify the large spends. Judging from Bhavin’s fancy cars it just might be.
Factors that will affect Big Rock’s eventual success
- There is a huge network of resellers and web designers who are the primary purchasers and distributers of domain and web hosting services in India. Since this is a technical topic most business owners leave the hosting decisions to them. This will be the hardest hurdle for Big Rock to leap.
- Tangible value and ease of use will also play a major part in BigRocks success. GoDaddy, one of the largest hosting providers in the world has a complete self service portal allowing customers to do almost everything through it. Coupled with great service GoDaddy provides great tangible value for the end-user. Can BigRock replicate it.
- Pricing might Not be a major factor since almost all hosting providers are on par in India. In fact it is a highly commoditized business. The differentiating factors will be elsewhere.
- Directi’s already existing client base and infrastructure allows BigRock to claim ‘Over 5 Million customers trust our platform for their online needs‘. This experience and backing allows it get off to a running start.
It will be interesting to see how BigRock fares.
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