Final Report


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Final Report

  1. 1. Executive Summary <ul><li>Low-level market BUT growing fast. </li></ul><ul><li>22M internet users, 3% broadband penetration. 84% of Netizens follow blogs. </li></ul><ul><li>Estimated that broadband usage will be 75%, 20M broadband users by 2010. </li></ul><ul><li>Internet Ad revenue: $52M (2006) --- $559M (2009) 970%+ </li></ul><ul><li>SNS HOT! Esp. US ones. English not a problem. </li></ul><ul><li>11 in Indian Top 100, only 1 is native ( bharatstudent). </li></ul><ul><li>SNS concept NO problem. Orkut played best. Facebook is catching up. </li></ul><ul><li>India is international. No problem with foreign sites. </li></ul><ul><li>Dog-eat-dog among native SNS. No competitor yet. </li></ul><ul><li>40+ SNS startups. Most are U.S. clones. Local marketing HOT! </li></ul><ul><li>No genealogy site yet. </li></ul><ul><li>Strong family ties. BUT limited value in genealogy. </li></ul><ul><li>Indians value family ties VERY MUCH. </li></ul><ul><li>More than Half of all users are among 18-25 years. </li></ul><ul><li>High concern about privacy on SNS. </li></ul><ul><li>very few people upload their real photo. </li></ul><ul><li>people are willing to give their phone number & contacts on address book </li></ul>
  2. 2. Indian internet Summary <ul><li>Infrastructure low level </li></ul><ul><li>Broadband penetration 3% --- 34M </li></ul><ul><li>Most active Internet users live in A & B cities. </li></ul><ul><li>150,000+ “.in” domains. </li></ul><ul><li>Features of Indian users </li></ul><ul><li>28% of the country’s internet users own a car, 34% use credit cards, while 90% of them have mobile phones. </li></ul><ul><li>only 12% visit local language websites. </li></ul><ul><li>Traveling & Matrimonial services are HOT! </li></ul><ul><li>India is an international free market. </li></ul><ul><li>No intervention by government </li></ul><ul><li>Only 2 are native on Indian TOP 100. </li></ul><ul><li>Native sites no competitor. </li></ul><ul><li>Low innovation, little funding ( Now only Minglebox got VC funding of $7M) </li></ul>Source: juxtconsult
  3. 3. Agenda <ul><li>Indian Internet background </li></ul><ul><ul><li>Indian SNS status </li></ul></ul><ul><ul><li>Top10 SNS Research Methodology </li></ul></ul><ul><ul><li>Top100 Websites </li></ul></ul><ul><ul><li>Top10 Native SNS </li></ul></ul><ul><ul><li>Key findings on success of Top Native SNS </li></ul></ul><ul><ul><li>Successful features of Top Native SNS </li></ul></ul><ul><li>Indian in China and Next Step </li></ul>
  4. 4. Top SNS Research Methodology Alexa Indian Top 100 Websites 1. Leads generation : -Scan each site and mark its Category, SNS attributes, US equivalent, Function description -Select each category’s top2 Top 10 SNS Individual Research 2. Experience and deep dive : -Explore key features of each -Summarize key differentiator of each, as well as find User# and Funding$, thro blogs/industry or VC event news Final Report 3. Summarize : -Distill key success traits from Top10 SNS -Distill key indicator from CNNIC 2007 report -Analyze SNS market status
  5. 5. Top 100 Indian Sites
  6. 6. Top SNS in Indian market N 76 Tagged 9 N 88 Linkedin 10 N 67 Digg 8 N 8 Youtube 2 N 35 Facebook 3 N 60 Myspace 7 N 51 Flickr 6 N 40 Hi5 5 Y 38 Bharatstudent 4 N 2 Orkut 1 Native? Alexa ranking Site Rank
  7. 7. Top 10 Native SNS
  8. 8. Top 10 Native SNS
  9. 9. Shining points of native SNS <ul><li>Fast clones of favorable features. </li></ul><ul><li>Circles, communities, track back, Live chat etc. </li></ul><ul><li>Possession of local resources. </li></ul><ul><li>Many played Indian card. Advertised on campus. School representatives </li></ul><ul><li>Media campaign. Star’s influence. </li></ul><ul><li>Marketing moves. </li></ul><ul><li>Bharatstudent: $2 for 1000 unique views </li></ul><ul><li>Ibibo & sulekha: Reward active bloggers </li></ul><ul><li>Desimartini: TV & radio campaign. </li></ul><ul><li>Slideshare: world’s best contest. </li></ul><ul><li>Minglebox & yaari: spamming on orkut </li></ul><ul><li>SMS features. </li></ul><ul><li>Yaari & ibibo & desimartini: simple SMS features enable users to communicate offline </li></ul><ul><li>Some shining innovations & biz models. </li></ul><ul><li>Mouthshut & slideshare are leading brand new market area in India. </li></ul><ul><li>Many sites like Yarri & ibibo depends on revenue from MVAS. </li></ul>
  10. 10. Proven Features      trackback    File sharing        photos Music Blog             Scrapbook     Online user       Clean design    sirfdosti    yaari    Minglebox    desimartini    Mouthshut    fropper Ibibo   slideshare    Bharatstudent videos Groups friends
  11. 11. User Behavior On Social Networking Sites in India <ul><li>Friends: </li></ul><ul><li>average no. of new friends one adds per week : 0.71 </li></ul><ul><li>Scrap: </li></ul><ul><li>Average number of Scraps by a user in a week : 28.1 </li></ul><ul><li>Communities: </li></ul><ul><li>used more as badges than as a platform to interact with people. </li></ul><ul><li>Average number of communities joined by a user in a week : 0.8 </li></ul><ul><li>Fans: </li></ul><ul><li>Average no. of new fans a user gets in a week: 0.68 </li></ul><ul><li>Photos </li></ul><ul><li>average number of photos per profile is currently: 3.43. </li></ul><ul><li>Videos </li></ul><ul><li>Average number of Videos per profile on Orkut : 3.98 </li></ul><ul><li>92% of the videos uploaded were Music videos </li></ul>
  12. 12. Issues in India <ul><li>India is Flat. No need for local product team at first steps. </li></ul><ul><li>Work force cheap. Better hire local marketing team. </li></ul><ul><li>MVAS can make revenue. Hard to charge from users. </li></ul><ul><li>Start from Indian-Americans. </li></ul><ul><li>Leverage SMS to reach a larger audience </li></ul>
  13. 13. Cultural & Economic background <ul><li>Population </li></ul><ul><li>1,130 M </li></ul><ul><li>Age structure </li></ul><ul><li>0-14 years: 31.8% </li></ul><ul><li>15-64 years: 63.1% </li></ul><ul><li>65 years and over: 5.1% </li></ul><ul><li>Total fertility rate </li></ul><ul><li>2.81 children born/woman </li></ul><ul><li>Languages </li></ul><ul><li>English enjoys associate status but is the most important language for national, political, and commercial communication; Hindi is the national language and primary tongue of 30% of the people. </li></ul>
  14. 14. Cultural & Economic background <ul><li>Literacy </li></ul><ul><li>total population: 61% male: 73.4% female: 47.8% </li></ul><ul><li>Population below poverty line: </li></ul><ul><li>21% (2005 est.) </li></ul><ul><li>Currency & Exchange rates: </li></ul><ul><li>Indian rupee Indian rupees per US dollar - 45.3 (2006) </li></ul><ul><li>GDP (purchasing power parity): </li></ul><ul><li>$4.156 trillion (2006 est.) </li></ul><ul><li>GDP – real growth rate </li></ul><ul><li>9.2% (2006 est.) </li></ul>
  15. 15. Internet Usage and Population Statistics <ul><li>Indian internet population: </li></ul><ul><li>22M ( comScore) 40M(IAMAI) </li></ul><ul><li>Internet penetration: 3% </li></ul><ul><li>there were around 180 operational ISPs in the country. 10% of the ISPs have 90% of the subscribers. </li></ul><ul><li>The &quot;.in&quot; domain registrations surpassed 150,000. </li></ul>
  16. 16. A fast-growing market <ul><li>Broadband usage in India is growing 20% / month </li></ul><ul><li>By early 2005 there were about 700,000 broadband subscribers – a penetration of less 0.1%. </li></ul><ul><li>India’s new Broadband Policy is targeting 20 million broadband subscribers and 40 million Internet subscribers by 2010. </li></ul><ul><li>The growing popularity of cybercafés has been playing a big role in fuelling Internet development in India. </li></ul><ul><li>There is tremendous enthusiasm amongst the dial-up users and an estimated 60% of users regularly access the Internet via the country’s more than 10,000 cybercafés. </li></ul>
  17. 17. A fast-growing market <ul><li>the number of internet users in urban India has grown by 28% at 30.32M in April 2007 as against 23.60M a year ago. Of the total 30.32M urban internet users, 25.17M (83%) log on at least once a month, whereas 20M use the Net at least once a day. </li></ul><ul><li>78% of the internet users in urban India access the Net from their workplace, 59% from home, and only 47% of them go online from cyber cafés. </li></ul><ul><li>The IAMAI study estimates that by the year 2009-10, broadband will account for 75% of the total internet connections. </li></ul>
  18. 18. IT background <ul><li>Source: Mary Meeker, Morgan Stanly </li></ul><ul><li>IT industry and software exportation trade contributed a lot to GDP </li></ul><ul><li>Huge numbers of engineering professions had their experience in U.S.A </li></ul>
  19. 19. Features of Indian users <ul><li>28% of the country’s internet users own a car, 34% use credit cards, while 90% of them have mobile phones. </li></ul><ul><li>According to a study by online research and advisory firm JuxtConsult , only 41% of India’s 30M internet users prefer to browse online in English as compared to 59% a year ago but only 12% visit local language websites. </li></ul>
  20. 20. What Indians do online <ul><li>Indians go online for a number of activities including e-mail and IM (98%); job search (51%); banking (32%); bill payment (18%); stock trading (15%); and matrimonial search (15%). </li></ul>
  21. 21. Top online activities <ul><li>Emailing, job search and instant messaging are the three most popular online activities in the country. </li></ul><ul><li>online gaming is less popular than checking news, listening to music, chatting and sending e-greetings. </li></ul><ul><li>84% of Indian Netizens follow blogs. </li></ul>Daily blog posting
  22. 22. Blogging in India
  23. 23. Cell phone is the PC of India <ul><li>India has more than 180 million active cell phone users. Time spend with cell phone exceed all others. </li></ul><ul><li>2-3 million Users used GPRS more than once download wallpapers, ringtones etc. </li></ul><ul><li>0.2 million of these use GPRS to regularly access Email on their mobiles. </li></ul>
  24. 24. MVAS market <ul><li>$708M now -- $1,119M at the end of 2007 </li></ul><ul><li>P2P SMS -$283M </li></ul><ul><li>GPRS usage : </li></ul><ul><li>121.4 million GSM users. 50-60 million of these 121.4 million GSM users have data capable phones. 10-15 million of these users actually know what is GPRS and have at some point used their phone to access data. 2-3 million of these have used it more than once and use it predominantly to download wallpapers, ringtones etc. 0.2 million of these use GPRS to regularly access Email and other services on their mobiles and can be termed as active users of GPRS </li></ul><ul><li>Mobile-based native SNS: </li></ul><ul><li> </li></ul>
  25. 25. Market background <ul><li>Online Advertising </li></ul><ul><li>Indian online advertising has a current base of $60 million ( less than 2% of the country’s total annual advertising spends) , which is expected to grow to $500 million in the next 2 years. </li></ul><ul><li>VC FUNDINGS </li></ul><ul><li>2006: 27 dotcoms got funded. Total investment: $166M </li></ul>Source: ZenithOptimedia Indian online advertising market (crores)
  26. 26. Indian online audience
  27. 27. <ul><li>Google is the most preferred site for information search not only in English (75%) but also in other languages (74%). Yahoo is the preferred choice for both email (53%) as well as instant messaging (63%). It also leads the online gaming segment with 18% of the users preferring its service, as against 17% preferring Zapak. </li></ul><ul><li>Naukri is the most popular job search site preferred by 37% of the people surveyed </li></ul><ul><li>eBay and ICICI Direct are the most popular sites for online shopping and share trading respectively preferred by 34% and 36% of the people surveyed. </li></ul><ul><li>Orkut is the most popular social networking site preferred by 64% of the people surveyed </li></ul>Most preferred websites
  28. 28. Most preferred websites <ul><li>BharatMatrimony and Shaadi earn the support of 29 and 28 per cent of the survey respondents in the matrimony search field </li></ul><ul><li> is the most preferred (22%) site for listening to online music. </li></ul><ul><li>Orkut is the most popular social networking site preferred by 64% of the people surveyed </li></ul>
  29. 29. Why foreign SNS played better <ul><li>First mover. Orkut firstly marketed the concept of SNS. </li></ul><ul><li>No language barriers, India is international. </li></ul><ul><li>Free market, the government doesn’t interfere. </li></ul><ul><li>Too much me-too clones, No unique differentiator. </li></ul><ul><li>Native sites are WEAK (products, UI, funding, marketing strategy) compare to foreign sites. </li></ul>
  30. 30. Video Rewards
  31. 31. User – ranking: more interaction 2
  32. 32. Simple SMS features
  33. 33. Ychat 1
  34. 34. Online Chat
  35. 35. Ezblog: provide more tag option, easy way for blog rookies
  36. 36. E-mail remind – increase stickness