The document discusses the rapid growth of India's internet usage, predicting that by 2021, India will have more internet users than the combined population of six G7 countries. It highlights the evolving digital consumer behavior, emphasizing the need for personalized targeting and segmentation in e-commerce, which is expected to reach 50-55 billion USD by 2021. Additionally, it suggests that companies should integrate digital strategies into their core business and reorganize for a digital future to enhance customer engagement and operational efficiency.

1. Decoding the digital opportunity in retail

2. Report launch deck.pptx 1Draft—for discussion only
Copyright©2017byTheBostonConsultingGroup,Inc.Allrightsreserved.
By 2021, India will have more Internet users than the entire
population of 'six G7' countries
60
66
66
83
337
170
0
100
200
300
400
500
600
700
330
202120212016
~600-650
650-700
USA
Number of people (Mn)
Germany
Canada
2013
France
Italy
38
UK
Internet users in India
Population of G7
countries
Source: BCG CCI Digital Influence Study, EIU, BCG Analysis

3. Report launch deck.pptx 2Draft—for discussion only
Copyright©2017byTheBostonConsultingGroup,Inc.Allrightsreserved.
Digital is all pervasive – goes well beyond stereotypes
% of Internet
users in 2014
% of Internet
users in 2016
Source: BCG Buzz to Bucks study 2014,2016
Young (<25 Yrs)
47% 75%
1.6x
Male
39% 57%
1.5x
Metro/T1
30% 51%
1.7x
Not So Young (35+ Yrs)
12% 29%
2.4x
Female
15% 27%
1.8x
Non- Metro
27% 44%
1.6x
Affluent
55% 60%
1.1x
Strugglers
16% 39%
2.4x
People who we think use internet in India...
... but many others beyond the stereotype are
online

4. Report launch deck.pptx 3Draft—for discussion only
Copyright©2017byTheBostonConsultingGroup,Inc.Allrightsreserved.
This digital usage has no 'time slot' in user's life – it is
omnipresent!
7 am
8:30 am
11:30 am
12 pm
1 pm
5 pm
6 pm
7:30 pm
8:30 pm
10:30 pm
11 pm
Downloads study material and
uses the university websiteTransfers funds to mother through
bank account, recharges mobile
Surfs e-commerce websites for
the latest deals
Shortlists the most attractive
deals to discuss
with family later
Checks WhatsApp messages
and browses Facebook
Listens to music on his phone
on the way to college
Wakes up and checks
messages on WhatsApp
Updates latest events, uploads
pictures and shares jokes on
Facebook and WhatsApp
Calls friend studying in
Australia over Skype
Plays Mini Militia,
a multi-player game with his
friends and brother
1 am
Discusses e-commerce deals
with family over dinner, orders
the most attractive ones
Checks WhatsApp before going
to bed
References study material,
watches Youtube
during study breaks
Typical day of an Indian internet user

5. Report launch deck.pptx 4Draft—for discussion only
Copyright©2017byTheBostonConsultingGroup,Inc.Allrightsreserved.
'Each' digital consumer displays a distinct behavior online
0
1
2
3
4
5
See
Select
Search
Socialize
Spend
Study
Save
Sell
Each line represents the
activity map of a sample
online user
Source: BCG consumer immersion surveys 2016

6. Report launch deck.pptx 5Draft—for discussion only
Copyright©2017byTheBostonConsultingGroup,Inc.Allrightsreserved.
To
"Many" (hundred) segments using:
Implication: New segmentation possibilities, enabling
predictive and customized targeting
?
Mass
Targeting
Micro
Segmentation
Time of
day
Day of
week
Location
Weather
Season
Phone
Email
Billboard
Product
Previous
behaviour
Timing Context Channel
Personalized
product offering
Shirt recommendations based on
previous browsing history, purchases,
"likes" on social media ( Facebook/
Instagram), usage and latest trends...
Personalized
communication
and
promotions
Source: BCG
Targeted contextual
promotion such as, "It's a foggy day, try
our new hot beverage "
From
A "handful" of segments....
• Limited data availability
• Demographic data based segmentation

7. Report launch deck.pptx 6Draft—for discussion only
Copyright©2017byTheBostonConsultingGroup,Inc.Allrightsreserved.
E-commerce expected to be 50-55 Bn USD by 2021
E-commerce could become a significant channel across many categories
0 20 40 60
2021 50-55
2016 12-14
2015 6-8
0
10
20
30
40
Online share of total retail sales (%)
13-15%
Consumer
electronics
38-42%
Appliances
6-8%
16-18%
Apparel
5-7%
13-15%
Homeware
and
furniture
2-4%
11-13%
Luxury
3-5%
9-11%
Health
2-4%
9-11%
FMCG
1-2%
7-9%
Food &
Grocery
0-1%
1-3%
2016
2025
Online retail spends
(Billion USD) Percentage penetration of e-commerce across categories
E-commerce values are total annual sales, net of returns / discounts, for physical goods sold. It does not include services like travel / banking insurance etc.
All estimates are at constant currency USD =68 INR -

8. Report launch deck.pptx 7Draft—for discussion only
Copyright©2017byTheBostonConsultingGroup,Inc.Allrightsreserved.
Business strategy, powered by digital
Enable
Transform the core
Winning in the new reality: Digitize and Disrupt
Organisation Data & Insight Support FunctionsIT & Infrastructure
Disrupt & Innovate
New
Business
Models
Digitize core
business
Enhance
effectiveness across
the retail value
chain
Digital
engagement
Enhance consumers
digitally; build strong
advocates
Digital
commerce
Use digital as a
sales channel
1 2 5
Digital in store
Redefine role of
physical stores:
enhance experience
through in-store
interventions
3 4

9. Report launch deck.pptx 8Draft—for discussion only
Copyright©2017byTheBostonConsultingGroup,Inc.Allrightsreserved.
Re-imagine consumer journeys in light of new and emerging technologies
Key takeaways for a true digital transformation
Do not treat digital as an "add on" – It should be central to the CEO's agenda
Challenge the organization to digitize across the value chain
Harness the power of data – The hidden goldmine of BIG DATA
Reorganize for the digital world & create network of partnerships for new capabilities –
CANNOT be done in-house
2
3
4
5
1

10. Report launch deck.pptx 9Draft—for discussion only
Copyright©2017byTheBostonConsultingGroup,Inc.Allrightsreserved.
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