Christoph Kunzendorf

Christoph Kunzendorf

Managing Partner, Serviceplan Group

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Digital is where consumers are watching brands.

Digital India is the big buzzword on everybody’s lips these days but the scale at which digital penetration is about to explode will ring a bell in your mind.

The key to success for any business in India, is to have a strong digital presence these days. Relevant content on mobile which entertains, informs and engages the consumer is definitely a winner for the 4-screen Indian viewer. Indian internet users who are living in metro cities spend about 24 hours on the internet every week. [Daily the Germans spend at least 2:08 hours online. Users who also go online with mobile devices spend 2:43 hours a day (Source: http://www.ard-zdf-onlinestudie.de/). That’s half an hour less than the Indian users.] Women internet users are rising but the average time spend by women is less than men. However, there is a huge demand on content online. Indians are spending 9.9 hours per week watching traditional broadcast TV, parallelly they also browse smartphones, stream video and watch TV on their laptops or smartphones.

Video Content Consumption

Indians are mostly engaging for downloading video. 82% India’s video streaming audience access video content every week. India’s massive smartphone user base an average video streaming time of 7.4 hours per week. This creates a great opportunity for content creators and distributors so there is an enormous potential for content distribution on digital devices.
[Europe is way behind: http://www.nielsen.com/content/dam/nielsenglobal/eu/docs/pdf/Nielsen-global-video-on-demand.pdf]

What are Indians watching?

1Movies94%
2Entertainment82%
3Music Shows / Music Videos77%
4News/current affairs from local TV networks77%
5News/ current affairs from overseas TV networks70%
6Local drama series69%
7Lifestyle68%
8Local sport, available on local TV66%
9Overseas drama series65%
10Documentaries60%
11Overseas sport not easily accessible on TV59%
12Children’s programs32%

Source: Nielsen (2015 VOD)

Research Online – Purchase Offline

Consumers in India are researching for online information on any product they have to purchase. They are reading recommendations, people’s experiences, seeking digital opinions before they make a final purchase on goods/services. Recommendation from social networks or friends is something, which is highly in trend these days; a lot of brands are looking for testimonial based ads with real consumers.

The Smartphone Consumers

The number of smartphone users growing everyday, at a very fast rate. There are 170 million internet enabled smartphones currently in India with about 3 million added month on month for the next one year. There is also a boom in “app” business to woo consumers.

Ecommerce

Globally Indian ecommerce market is to grow fastest. Today ecommerce is an indispensable part of every Indian’s life today, with homegrown brands like Flipkart, Snapdeal, Myntra, urbanclap wooing the consumers with different tactics every few weeks while Amazon still going strong to provide the bigger platform amongst all. Today ecommerce is offering all kinds of goods and services at the door step of the consumer. Convenience is the key here across all categories of groceries, beauty salon, taxi, solutions, FMCG etc.
The ecommerce sector has seen unprecedented growth since 2014, almost by 34% compound Annual Growth (CAGR) from US $ 3.8 billion in 2009 to US $ 16.4 billion with a projected growth to hit US $ 100 billion by 2019.
Increase in the online shoppers in India from 20 million in 2013 is to 40 million in 2016.

Factors that foster growth in the current Indian landscape are:

  1. Increasing disposable income across households
  2. Expanding Urban scenario
  3. Small families
  4. Evolving preferences
  5. Ecommerce

 

We are looking forward to dive deeper into this discussion with the “Serviceplan International Roadshow: INDIA INSIGHTS” on Tuesday, November 22nd 2016 at the House of Communication Munich. Are you interested in participating in the event? Please contact the dedicated event team via email. The number of participants is limited.

Download invitation.