Market Report India April 2012 Media Software Team Mayuko Sato
Basic Data of IndiaCountry Republic of India(long form) :Capital : New DelhiTotal Area : 3,287,263 km2 (water 9.56%) (slightly more than one-third the size of the US)Population : 1,241,500,000 (Oct 2011 from UNFPA)Languages : Hindi, English and other 21Constitution official-recognition languages.Literacy : 74.04% total, 82.14% male, 65.46% female (2011)Religions : Hindu 80.46%, Muslim 13.43%, Christian 2.34%, Sikh 1.87%, Buddhist 0.77%, other groups 1.13%Life Expectancy : 64.7 total, 63.2 male, 66.4 female ( 2005 - 2010)Government Type : federal republicGDP (PPP) : US$4.457 trillion total, US$3,693 per capita. (2011 est.)GDP (nominal) : US$1.676 trillion total, US$1,388 per capita. (2011 est.)Industry : textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery, softwareAgriculture : rice, wheat, oilseed, cotton, jute, tea, sugarcane, potatoes, cattle, water buffalo, sheep, goats, poultry; fishArable Land : 56%Natural : coal (fourth-largest reserves in the world), iron ore,Resources : manganese, mica, land, bauxite, titanium ore, chromite, natural gas, diamonds, petroleum, limestone, arable Internet Usage
Internet UsageInternet UsersActive users are 65 million. (5.47% of population)Regular users are 61 million. (5.13% of population)More than 51 million users are daily users,Internet reached 29 million households in 2011.users from mobile access is 1/4 of the internet users.In india, the number of broadband subscribers reached to 11 million in 2010.This number will increase 10% by 2015.According to GSMA, It will lead to $80 billion in extra revenue forTransport, Healthcare and Education.Source : Juxt / www.juxtconsult.comSource : Telecom Talk / telecomtalk.info*"Active" is use the internet in last one yaer.*"Regular" is use internet once a month.Online ActivitiesPopular Online Activities – Top 10 (2011) Internet Users Change FromOnline Activity Undertaking last Year (%) (%)Emailing 95% 1%Search or buynon-travel 76% 33%productsWeb info search(text, images) 74% -Downloadmusic 69% -3%Job search 62% 6%Socialnetworking 61% 8%Search or buytravel 59% 25%productsInstant messaging/chatting 57% 1%PC to mobileSMS 54% -2%Pay billsonline 51% 22%Visit local Indianlanguage websites 29% 2%
Most Used Indian Websites by activities (2011) Region where % Use Most Top Relatively Online Activity - All Online Website Most & Least NRI PopularGeneral newsabout India Timesofindia 25% Gulf (27%)Business & Asia Pacificeconomic news Economictimes 16%from India (22%)Financial info from US/EuropeIndia Moneycontrol 20%(quotes, rates, etc) (35%)Jobs in India Naukri 50% Gulf (59%)Real estate info US/Europein India 99acres 14% (33%)Social networking Asia Pacificin India Facebook 74% (82%)Professional US/Europenetworking Linkedin 41%in India (59%)Matrimony Bharatmatrimony 43% Gulf (55%)Friendship/Dating Facebook 42% Gulf (63%)Picture sharing Facebook 32% GulfIndian spirituality/religious content The Hindu 11% Other NRIGlamour/lifestyle content Yahoo 19% Other NRIfrom IndiaCheck travel/tourism info Makemytrip 20% Gulf (26%)about IndiaBook travel ticketsfor India Makemytrip 19% Gulf (25%)(travel portals only)Online shoppingfrom India US/Europe(non-travel Ebay 15% (17%)products)Transfer money US/Europeonline to India Icicibank 17% (27%)Indian video /picture galleries Youtube 27% Gulf (37%) Other NRIIndian cinema Bollywood 13% (17%) US/EuropeIndian music Raaga 15% (30%) US/EuropeIndian sports Cricinfo 31% (42%) US/EuropeAstrology Astrology 18% (28%)*NRI is Non-Resistant Indian
Online Consumption ActivitiesMore than 51 million users shop online, and 17 million of these buy online.(Increased 70% from 2010)Buyers of "travel" product are 8.6 million."Non - travel" product buyers are 13.5 million.Most bought "non - travel" products were mobile phones & accessories (56%),computer hardware and consumer electronics (35% each)and movie tickets (30%).Most bought "travel" products were train tickets (83%) and air tickets (58%).Most Used Websites by vertical 1(2011) % Use % Use Most Vertical Top Website (Among Vertical (Among Vertical Users) Users)Generic Portals Yahoo, (Google)(all-purpose 84%, 84%websites) Google 51%Emailing Gmail 92% 61%InstantMessaging Gtalk/Gmail 73% 51%Job Search Naukri 78% 57%Online News Google 61% 32%OnlineTravel Buy IRCTC 81% 66%OnlineGames Facebook 51% 30%Online Buying(Non-Travel) Ebay 49% 31%Real Estate 99acre 64% (Google) 36%Business & FinancialNews Google 55% 36%Online ShareTrading (Trading) Sharekhan 50% 30%PC to PC Net Google/Telephony 89% 52% GtalkPC to Telephone Google/ (Yahoo)Net 69%Telephony Gtalk 46%PC to MobileMessaging (sms) Way2sms 79% 59%Net banking ICICI Bank 49% 21% BharatMatrimony 80% 56% matrimonyFriendship/Dating Facebook 80% 48%Share/upload Facebook 77% 45%PicturesSocialNetworking Facebook 87% 59%
Most Used Websites by vertical 2 (2011) % Use % Use Most Vertical Top Website (Among Vertical (Among Vertical Users) Users)Professional (Orkut)Networking Facebook 73% 36%Share/ (Youtube)upload Videos Facebook 69% 43%Non-cricketSports Espnstar 60% 34%Cricket (Cricinfo)content Yahoo Cricket 65% 37%Cinemacontent Google 64% 43%WatchVideos Youtube 89% 78%Financial MoneyInfo & Quotes 47% 27% controlBuy/Rent (Sify)Movie CD Ebay 64% 37%Mobilecontent Google 52% 33%DownloadMovies Torrentz 63% 49%DownloadMusic Songspk 62% 47%Listen/stream Music Youtube 60% 27%Share/Upload Music Youtube 69% 50%Health & LifestyleContent Google 75% 45%Online Educationand Google 76% 52%LearningAstrology Astrology 46% 34%Screensavers/Wallpapers Google 72% 50%E-greetings 123greetings 77% 67%Search Locations/Maps Google 94% 85%Search for HigherEducation Info Google 87% 79%OnlineTutorials Google 64% 43%Search/Buy Books Google 74% 58%Source : Juxt / www.juxtconsult.com
SmartphoneSmartphone ShipmentsAccording to the analyst of telecom market in India,20 million smartphone units will be shipped in India in 2012.About Japan, more than 30 million smartphone units will be shipped.A McKinsey estimate puts the number of smartphonesin India at 450 million in 2015. Mobile Phone Smart Phone Year (million) (million) 2009 102 2.14 2010 167 6.01 2011 183 10.43Source:India Monthly Mobile Handsets Market Review CY 2011 / www.cmrindia.comPrices of SmartphonesiPhone4 : 16G Rs 35,500 (US$ 688) - 32G Rs 41,500 (US$ 804)Lava XOLO X900 : Rs 20,000 (US$ 388)Micromax A85 Gossip : Rs 7,990 (US$ 155)Samsung Galaxy Ace Duos : Rs 16,900 (US$ 328)Fly Firebird : Rs 11,200 (US$ 217)These price look too expensive for most of Indiansbut the lowest priced smartphone being available at Rs. 3,000 already.It seems to be lower in middle of 2012.Source:Social Game Info / gamebiz.jp iPhone stuffs 4 U / www.iphonestuffs4u.comShares of leading Vendors Market Share Vendor (% of unit shipments) Samusung 34.1% Nokia 22.4% RIM 18.6%Source : CyberMedia Research / www.cmrindia.com
Most Searched Phones in IndiaThis ranking (updated on April 19, 2012) is from Mobile Indian,one of the biggest news site about mobile product in India.1. Nokia C5-03 (US$ 162)2. Nokia C6 (US$ 199)3. Samsung Wave Y S5380 (US$ 130)4. Samsung Galaxy Y S5360 (US$ 135)5. Samsung Galaxy Y Duos (US$ 164)6. Samsung Galaxy SL I9003 (US$ 334)7. Samsung Galaxy Ace S5830 (US$ 245)8. Samsung Galaxy Note (US$ 587)9. Nokia Asha 300 (US$ 117)10. Micromax Superfone A73 (US$ 140)11. Sony Ericsson Xperia Arc S (US$ 392) ・ ・iPhone was ranked in 15th.Source : Mobile Indian / www.themobileindian.com/
Online ADOnline AD SpendsLast financial year (Apr 2011 - Mar 2012), online advertising spends wasRs 2850 Crore (US$ 542.3 million).Its smaller than Japan, but their market is increasing rapidly.Display ADOn display Ads, Travel, Auto, Telecom, and BFSI,are top verticals using display ads.39% ads are simple flash, 24% are images, 24% are rich media with video.Search ADTravel, BFSI, and Online Publishers are top verticalsare top verticals using display ads.About 90% of Search spends is to SEM,and other 10% is to buying or bidding for Adwords.
Mobile AD FY2012 total market size is Rs. 90 Crores (US$ 17.1 million). FY2012 total market size is Rs. 105 Crores (US$ 19.9 million). 74% are WAP / browser based Ads of Total Mobile Ad Spend, In-App Ads are 20% and 6% are others. Social Media AD FY2011 Total Spends are Rs. 80 Crores (US$ 15.2 million). FY2011 Total Spends are Rs. 94 Crores (US$ 17.8 million). Facebook is leading social media revenue. They are Text Ads, Companys fan page Ads. Source : IAMAI / www.iamai.in (Rs. Crore) Financial Year Mobile Classifieds Search Display Total 10-Mar 0 838 367 418 1,623 11-Mar 90 1,117 499 571 2,277 12-Mar 105 1,496 574 676 2,851 13-Mar 144 2,686 723 838 4,391 YoY GR Mobile Classifieds Search Display Total 13-Mar 60.00% 220.53% 97.00% 100.48% 170.55% Estimated GR FY2010 - 2013Mobile Classifieds Search Display 2,686 220%UP 1,496 1,117 97% UP 100% UP 838 723 838 60% UP 499 574 676 571 367 418 144 105 90
Average CPM on Facebook Country Price (US$) India US$0.09 Japan US$0.31 US US$0.20 UK US$0.26CPM on facebook can be one of a bencmark toforecast the size of Indian online market.According to these numbers, average CPM in india is half of US one.Source : India Business BL / trak.in
Political Measures for ITPolitical Measures for ITThe 11th Five Year PlanSource : NRI / www.nri.co.jpActivities of Government and Majour Companies1. Aakash: For development of IT industry, india government gave Akasha, low priced tablets (android OS), to 100,000 university and college students.2. Infosis : The biggest IT company in India, Infosis, is planning their strategy to develop. IT industry in India, with raising 3 key words. Easy to use/Cloud/Technology of linkage.Source : NHK解説委員会 解説アーカイブス / cgi2.nhk.or.jp
EducationLanguagePopulation Ratio by language HindiHindi 422,050,000 25.76% BengalBengal 83,370,000 41.03% TeluguTelugu 74,000,000 Marathi 5.01% TamilMarathi 71,940,000 UrduTamil 60,790,000 5.91% etcUrdu 51,540,000 6.99%etc 264,920,000 7.19% 8.11%Literacy rateLiteracy Rate is 74.04%.Male Literacy Rate is 82.14%.Female Literacy Rate is 65.46%.Source : Maps of India / mapsofindia.comEnglish Literacy is about 11.4% (latest data 2001)Source : Times of India / timesofindia.indiatimes.comRecently, English speakers in India are increasing year by year,because of Indian education development.11.4% means there were 125 million English speakersat least in India at that time.And now, it is expected that there are more English speakersin India compared with 2001.In addition, there is a probability that they will get chances to useinternet through their PCs, tablets or smart phones within few years.
EconomyGDPEstimated GDP of 2011 is US$ 1.676 trillion total.In india, the service sector makes up 54% of GDP, the agricultural sector 28%,and the industrial sector 18%.Source : Ministry of Foreign Affairs of Japan / www.mofa.go.jp Wikipedia / en.wikipedia.orgMRI is saying that GDP Growth Rate of India will reach to China,and between 2016 to 2020, India GDP GR will exceed the China.Until 2030, India GDP has possibility to exceed Japan GDP.Source : MRI / www.mri.co.jpMonthly SalaryCurrent average monthly income is Rs. 5,000 (US$ 97).Estimated average annual income of 2012 is US$ 1,164.2/3 of online Indians earn Rs. 18.720 (US$ 350.4) per monthand they belong to SEC A,B and C.Credit CardIn India, credit card penetration has actually seen a decline of late.There are 18 million active credit cards in circulationand an estimated 8 million unique credit card holders.Penetration rate of credit card in India is 0.7%But the total transactions through credit cards in the yearfor2010-11 accounted for Rs. 75,500 Crore ($16.8 billion)while transactions through debit cards accounted forjust Rs. 38,700 Crore ($8.6 billion).
Source : AVENDUS / www.avendus.comSEC Classification Graduate/ Some Graduate/ School up to 4 School 5-9 Post lliterate SSC/HSC college but Postgradua years years Graduate not graduate te general professionaUnskilled E2 E2 E1 D D D DworkerSkilled E2 E1 D C C B2 B2workerPetty E2 D D C C B2 B2tradersShop D D C B2 B1 A2 A2OwnersBusinessmenwith D C B2 B1 A2 A2 A1No employeesBusinessmenwith 1-9 C B2 B2 B1 A2 A1 A1employeesBusinessmenwith 10+ B1 B1 A2 A2 A1 A1 A1employeesSelfEmployeed D D D B2 B1 A2 A1professionalClerical/ D D D C B2 B1 B1SalesmanSupervisory D D C C B2 B1 A2LevelOfficers/Executives- C C C B2 B1 A2 A2JuniorOfficers/Executives- B1 B1 B1 B1 A2 A1 A1Mid/Senior Upper most segment of the consuming class-A1,A2 and B1 Middle segment- B2 and C The lower most segment—D, E1, and E2. *SEC is a classification of households used by surveyors, market researchers, media and marketing companies in India to categorize consumer behavior. Source: Wikipedia / en.wikipedia.org/wiki/SEC_Classification_(India) India Online Landscape 2011/ www.juxtconsult.com The Indian Express / www.indianexpress.com
Consumption Expenditure and Literacy From the table, we can see that the state which has high literacy also has high consumption expenditure. Its not so remarkable but they seem to be related each other.3,000 100.00% City Rural Literacy 90.00%2,500 80.00% 70.00%2,000 60.00%1,500 50.00% 40.00%1,000 30.00% 20.00% 500 10.00% 0 0.00% Gujarat Rajasthan Maharashtra Kerala Haryana Karnataka Tamil Nadu Chhatisgarh West Bengal Assam Bihar Punjab Jharkhand Orissa Andhra Pradesh Madhya Pradesh Uttar Pradesh Source : JETRO / www.jetro.go.jp Source : Indiaonlinepapers.com / www.indiaonlinepages.com