Posts filed under 'Bharti'

Day 1 News from International CES 2013 (Consumer Electronics Show), Las Vegas

At the outset, we would like to wish a Very Happy New Year to our readers and Thank You for your continued patronage of CellStrat content. This is the first post of this year and starts with lot of hopes and aspirations for our readers and ourselves in the Year 2013.

As is customary each year, the year kicks off with the massive Consumer Electronics Show or CES in Las Vegas. We are glad to report from the ground there (well, just kidding) – we are hooked to the internet and getting minute by minute news feed from the ground so it is same as being there physically (almost).

Today was the first major day of CES. Some notable news from CES :

Qualcomm CEO Paul Jacobs opens the event with the “Born Mobile” mantra

Every year, either Bill Gates or Steve Balmer provide the opening keynote at CES but this year it was taken by Qualcomm CEO, a pre-dominantly mobile chip firm. This highlights the importance of Mobile to all things electronic now. With smarter devices and smarter everything, mobile chips are in almost everything we see in the future right from home appliances to mobile devices to industrial equipment, as well as most automotive assets like cars, trucks and containers.

Paul Jacobs explained his “Born Mobile” mantra today and there was a surprise when Steve Ballmer joined him on stage briefly – Paul said that even Microsoft has adopted the Born Mobile mantra. Paul launched Qaulcomm’s new Snapdragon 800 processors, which are the fastest mobile processors on earth as per him. These chips are about 75% faster than previous processors and can deliver HD video seamlessly as well as support Ultra HD television.

Sony launches new signature smartphones

Sony launched new Xperia Z Android smartphones, which have a five-inch screen, HD 1080p Reality Display and 13 megapixel camera. It is powered by a Qualcomm quad-core Snapdragon processor. What was unique is the new One Touch functionality that allows the device to wirelessly interact with other Sony devices such as speakers, headphones and TVs. Sony showcased a new Bravia TV which can display the phone content from the new smartphones if the phone is tapped to the TV remote.

Intel launches new smartphone chip family

Intel launched new chips for smartphones and tablets at CES today. Intel has been late to the mobile party and struggled againts ARM Holding and Qualcomm in this space. Now it is trying to get its mobile act together with an array of new smartphone and tablet chips.

The company’s new Atom processors which are in the next-gen category will be available in 2013 holiday period. The new chips assume Touch based interface as a key aspect of the functionality.

Samsung brings smartphone experience to it’s TVs

Samsung announced seamless integration between its smartphones and Smart TVs. The phone functionality of Touch and Speech recognition will be made available in Smart TVs. Samsung is probably the biggest success story of 2012 and has taken market share in almost all categories.

AT&T focuses on Digital Life and Project VIP

AT&T CEO Ralph de la Vega showcased the new Digital Life offering which falls in the Connected Devices or M2M category. This solution involves a Connected Home and Security apparatus and applications with remote management and monitoring of the Home by consumers and home owners. Glenn Lurie, head of AT&T’s Connected Devices business said, that less than 20% of US homes have security and less than 1% homes have home automation.

AT&T is pioneering the M2M space and a global leader in evolving and maturing M2M business models around Home and Security.

AT&T also announced APIs for developers to provide advanced call management applications – these probably use the IMS or IP Multimedia Subsystem interface to the wireless network.

AT&T also announced its intentions to deploy its new LTE network to 300 million people by end-2014. Currently, AT&T’s LTE network reaches 170 million people in USA which places it in second ranking behind Verizon in LTE deployments.

Project VIP (Velocity IP) is AT&T’s new $14 billion investment initiative to focus on LTE, Connected Home and other emerging areas.

Other news

Other news at CES today included LG announcing special emphasis on NFC as a linking tech to link all its products and providing an ability to put all these devices on the Connected Grid for remote management and control, Nvidia launching the world’s fastest mobile processor (as per its claims at least) and NTT Docomo launching a new M2M platform for global service providers using Jasper Wireless platform.

If one were to summarize, this year’s main themes seem to be Smarter and Faster Mobile Chips, Connectedness, Smart Devices, Digital Television etc. Let’s see what the remaining days of CES offer. We are watching the news in excitement about the up and coming technologies at this event. To get full coverage on this event, visit the event website here.

January 8th, 2013

The Internet – still an Equalizer ?

Today there is a post in the Wall Street Journal as to how the websites are tracking all user activities, right from location, personal profile, profession, hobbies, likes and dislikes.

Today’s internet is perhaps “too open”, where users information is freely available to retailers, analysts, marketers alike. While this may serve the purpose of “personalizing” offers and deals to consumers, it risks being labeled discriminatory if such information is used to offer different product pricing or search results to consumers. Not to mention the bigger risk of spammers and ID thieves catching hold of such information and launching malicious campaigns against consumers.

A WSJ investigation found that the office products retailer Staples is offering different prices on the same stapler to two different consumers who were just a few miles away.

Retailers are justified in offering different prices to different customers – this is what happens in stores too especially in different stores of the same chain. Retailers argue that local operating costs, real estate pricing, manpower costs and other logistics etc influence local pricing. In that sense, the online differential in pricing is no different than it’s offline cousin.

“But the idea of an unbiased, impersonal Internet is fast giving way to an online world that, in reality, is increasingly tailored and targeted. Websites are adopting techniques to glean information about visitors to their sites, in real time, and then deliver different versions of the Web to different people. Prices change, products get swapped out, wording is modified, and there is little way for the typical website user to spot it when it happens”, says the Journal.

WSJ said that many firms resorted to such price tactics, including Discover Financial, Rosetta Stone, Home Depot etc. Office Depot told WSJ team that they use customers browsing history and geolocation to offer tailored product offers and pricing for online shopping.

Technically, this is all legal, but the boundary line to ethical or discriminatory behaviour is not far. Eg certain racial groups may claim discrimination or local governments may cry foul. It seems that 76% of Americans are opposed to this kind of differential pricing.

But there are advantages too for differential pricing. Eg certain services like movie theatres offer senior citizen and student discounts.

The key takeaways are :

  • the fundamental premise of internet being an unbiased and same-for-all internet is bring eroded now as personalization increases and website behave differently for different people. The INTERNET IS NO LONGER AN EQUALIZER.
  • while differential pricing is normal and legal, it can raise ethical and discriminatory haggles across sections of the society. So retailers need to tread carefully.

What is CellStrat view : Retailers and web commerce firms need to abide by laws and be careful in offering personalized offers and pricing. Tailoring offers based on user information or their location has to be considered in view of the prevailing laws and user acceptance. Otherwise, the online commerce firms risk alienating the consumers who took to the internet to find an equal society, in the first place.

(Excerpted from WSJ article titled “Websites Vary Prices, Deals, Based on Users’ Information” dated 23 Dec 2012)

December 24th, 2012

Main Themes from Nasscom Product Conclave (7-8th Nov), Bangalore

(from our Bangalore desk)

I attended this conference in Bangalore earlier this week – it was most interesting with hundreds of company execs, entrepreneurs and thought leaders speaking about product innovation, development strategies and emerging technologies.

I will list some major themes I picked up at this conference:-

  • In India, next decade belongs to Product development and these will have major impact on business and social empowerment.
  • Hiring best practices and product quality differentiate successful organizations and individuals from all others.
  • In the new world, individuals and professionals which take initiative and drive innovation will take their organizations to leadership positions. This applies to large and small firms alike. These individuals will be the ones in most demand going forward.
  • Design and Image is crucial in the new world – this translates to User Experience and Engagement in all we do. Think Apple or Amazon.com
  • The big opportunities are in Smartphones / tablets, Mobile, Cloud, Analytics, Big Data, Social – all usual suspects. These are all big enablers of new innovation and present opportunities for growth. At the same time, these technologies create a level playing field. As a result, larger firms now find that small startups can cause immense disruption in the former’s usual businesses – hence executives in the larger firms must think like entrepreneurs to create new opportunities and ensure customer delight via superb delivery and engagement.
  • India has 900 million feature phones and only 10% of these are smartphones. So Mobile Apps and Enterprise Mobility offer incredible opportunity growing forward – this is true of western markets as well, as Enterprises there adopt mobile in a big way for all their applications. Mobile has truly gone from Mobile Also -> Mobile First – >Mobile Only strategy. Now, major new programs and initiatives in leading firms are planning to do a Mobile only strategy.
  • Cloud Computing is the new way of doing almost everything in IT for end clients – IT investments are shifting to Cloud at an incredible space – so much so that most new projects or initiatives are looking at Cloud as a preferred solution over an in-house hosting strategy.
  • Big Data is not a fad – with all the Social channels and frenetic transaction activity, Big Data is a problem which is growing in size everyday – as such, it offers major opportunities for solution providers and product developers to slice, dice and analyze, in order to achieve actionable intelligence and business decisioning.
  • Open source technologies are now fully mainstream and driving major new development.
  • Collaboration and leadership are key aspects in driving success. Most new innovation requires good collaboration and partnership skills as well as passion to succeed.
  • Naveen Tewari, Founder and CEO of InMobi, said that the three critical factors for success for a startup are :
    • Thing Big – you can do it
    • Hire the best
    • Focus on product quality. Good products sell themselves
  • Naeem Zafar, Founder and CEO of Bitzer Mobile as well as more than a dozen startups earlier, said that for each CEO, the main responsibility is “Don’t run out of money”.
  • IBM-mers Peter Coldicott (Chief Product Architect), Robert High (IBM Fellow in IBM Watson), and Daniel Yellin (Enterprise Mobility Chief Engineer) spoke about IBM’s Smarter cities program, Cloud and the new IBM super-computer Watson which is making waves.
  • Sharad Sharma (ex-MD, Yahoo India), spoke about product entrepreneurs as transformers of the society.
  • Deep Kalra, Founder and CEO of MakeMyTrip, spoke about his entrepreneurial journey and the Indian startup ecosystem.

The event is one power-packed event with almost 1300 delegates which included almost 150+ blue-chip speakers and thought leaders from India and abroad. The presence of so many Silicon Valley luminaries seems to indicate that action in Bangalore is accelerating and many westward folks are now looking east to this part of the world for next revolutions in tech and digital.

Kudos to Nasscom, Nasscom President Mr Som Mittal and all the dedicated NPC volunteers for putting together what we consider is a remarkable show.

For more updates from this event, click here.

November 12th, 2012

Apple iPhone 5 is here : CellStrat opinion

As if you have not heard enough about iPhone 5 already, here is more of it :)

Apple announced iPhone 5 on Sept 12th. The other big thing that happened that day was Quantitative Easing version 3 announcement by US Federal Reserve – one wonders, it was a synchronized announcement – just kidding.. Certainly, some market analysts have said that iPhone 5 may do more for US GDP growth than Fed’s QE3..amazing..

Well, intentional or not, both the announcements have a dramatic impacts – QE3 will accelerate the stock market rise around the world, fuel more inflation etc. Apple announcement will lead to Apple maintaining it’s hegemony in the smartphone ecosystem. I know, I know, some of you are on side of the table which is less than enamoured by the new iPhone 5. However, our take is that the ecosystem of Apple is much too strong and still underestimated by most. The vertical integration of iTunes, Macs, iPhones, iPads, licensed content in there, seamless charging via iTunes, cross-device synch capabilities are so intense and so transformational in the tech world, that few can match up with Apple prowess over the marketplace. Apple ran out of online inventory of iPhone 5 in one hour of opening the sales..validation enough of a huge pent-up demand out there.

Lack of NFC or some other popular features, now commonplace in other smartphones, will not deter iPhone 5 in creating breakthrough success once again for Apple sales. What most people fail to realize about Apple is that it does not usually toe the line created by others – it creates new models which, in many cases, become the benchmark over time. Coming back to NFC, Apple did bundle a feature called Passbook in the new iPhone 5 – a loyalty and coupon management feature – this is not payment enabled but it could evolve into a Digital Wallet. Many leaders like eBay, Square, Paypal are making do without NFC in Mobile Payments and quite successfully at that. It is likely that NFC may never become the mainstream mobile payment tech if Apple and others listed here do not push it.

As to what Apple iPhone 5 does pack, it has a laundry list of neat features :

LTE (4G capable), Thinner, Lighter, bigger screen (4 inch diagonally), all new Apple-designed A6 chip, better retina display, improved camera (although megapixels remain at 8 megs), enhanced HD video recording, 5 rows of icons on the screen, improved Siri assistant, new lightning connector, new Apple mapping app, better iCloud integration, 700,000 apps, new iOS 6 OS, Passbook loyalty feature, the list goes on and on.

To view all iPhone 5 features, click here.

As far as we can visualize, we still feel demand for iPhone 5 will be back-logged and people will go gaga over this device the world over. Apple mobile leadership is far from being threatened, not until they make major blunders or others truly can provide a neat vertically integrated ecosystem. So far, we see only Amazon as being anywhere close to providing the vertical ecosystem with Kindle platform. Samsung tried but it is missing many major components for creating a complete ecosystem, music partnerships to begin with, among other things. Google does not try as their focus is entirely different – to monetize via search engines on Android devices.

So – for now, it is Apple’s world to rule in the mobile arena, until somebody else “does an Apple” on them.

September 17th, 2012

Mobile Device Parade looms this week

This week, we watch in excitement as a mobile device parade looms from leading device makers. Motorola, Nokia and Amazon are all expected to announce new devices ahead of Apple’s iPhone5 announcement next week.

Motorola is bringing out a Droid Razr smartphone, which amounts to revival of the Razr brand, which Motorola sold successfully for many years before smartphones stormed the markets. Motorola, now owned by Google, has been a struggler in the last few years, and none of its smartphones have caught the fancy of the consumers yet, so far.

Nokia is announcing new Windows 8 phones – Windows 8 phone OS is the prelude to the Windows 8 desktop OS to be announced by Microsoft later this year. Windows 8 is supposed to work seamlessly across PCs, phones and tablets. Nokia’s Windows OS, so far, as been lackluster. Windows Phone OS has only 3% market share in the smartphone market compared to 64% Android share and 18% Apple iOS share.

Jeff Bezos of Amazon is set to announce the next version of Kindle Fire at an event on Thursday. Kindle Fire’s last version has reportedly sold out, as per Amazon, one is sure these device makers produce such products in limited quantity to create the marketing effect of a device in short supply. But certainly, after the iPad, Amazon Kindle Fire is the most successful tablet so far.

Then comes the big brother Apple on Sept 12th, with its reported iPhone5 launch.

While we feel that Apple is the mover and shaker of the mobile smartphone business with bulk of app and device profits as well, sometimes one wonders if the Android market share of 64% vs iPhone OS market share of 18% bodes well for Apple or not. No wonder, Apple is spending millions in it’s lawsuits against the Android device makers like Samsung.

Samsung had recently released the Galaxy Note 10 inch version – Galaxy Note has been a runaway success for Samsung as was the case for Galaxy smartphones.

Device wars are heating up and it can only get better for consumers the world over.

September 4th, 2012

Mobile Payments dogfight

Recently, we heard that Starbucks – the behemoth in coffee retailing business, invested in Square – the American Mobile Payment startup; as well Starbucks stores will be accepting payments via Square mobile app. Starbucks already had their mobile wallet solution and had seen a record number of transactions via this platform, wherein the customers would just wave the starbuck app barcode on their smarphones in front of a reader in a Starbuck store and the amount gets deducted from the user’s Starbucks mobile wallet.

Now Starbucks is betting on Square – that zingy startup which has attracted tons of VC money from big name investors. Starbucks buyin gives Square the credibility that is needed by the tech firm to sell into big name retail. So far Square app was popular for mobile payments, but primarily limited to thousands of small businesses which had adopted this solution. Starbucks approval puts Square square and centre in the Mobile payment contender space – along with the traditional digital payment firm Paypal. Paypal has been experimenting with Mobile Payments for sometime now and has the backing of millions of consumers and merchants who use Paypal daily for moving around money online.

Paypal, in turn, announced a partnership with Discover Card financial services, Paypal mobile app will mediate a Discover payment in select stores. Discover is the smallest of the 4 big Credit Card vendors in United States. Visa, Mastercard and American Express cards are working on their own mobile payment solutions or partnering with other internet and telco players. Discover is relying on Paypal to carry the smaller card vendor into the Mobile payments vertical (although Discover works in Mobile Payments via telco partnerships as well).

It seems like a dogfight between Square and Paypal has begin to try to dominate this upcoming area. Although there are other heavyweights in the ring – namely, ISIS (telecom carrier joint venture), Google Wallet, Apple potentially, banks and some others. It would be interesting to see what tricks Apple has up it’s sleeve. Apple is a killer firm which, when it enters a market, comes up with such innovations that few are able to compete with it.

The Mobile Payments space is fragmented and there is no clear winner or dominant player yet. The complexity in financial regulation and the difficulty in scaling this business over a large number of merchants has kept this area into the hobby domain so far. As it seems, it seems to be breaking out now with some startups and large firms making aggressive moves to create a market in this now. We watch this space with keen interest.

As far as India goes, there are local startups who have tried to tackle this space – firms like ngpay, paytm, obopay and some others. But most are still small and captive scale is not there yet. Many of these firms have survived in India by doing things other than Mobile payments. Eg Ngpay has become a mobile shopping mall, PayTM has gotten into recharge business and so on.

August 23rd, 2012

Notes from TIE Bangalore Seminar on Mobile App Monetisation

(from our Bangalore desk)

This week I attended a seminar organized by TIE Bangalore on the topic of Mobile App Monetization. This is a vexing problem which has bedeviled most Mobile Apps developers around the world. Problems of app discovery, app marketing, too many apps, app development fatigue are well known.

This was an interesting panel discussion sponsored by Qualcomm Ventures. The speaker lineup was top-notch and included the following speakers :

  • Karthee Madasamy, Sr. Director, India and Israel, Qualcomm Ventures
  • Manik Arora, Founder & Managing Director, IDG Ventures India
  • B. Vamshi Reddy, Co-Founder & CEO, Apalya Technologies
  • Rahul Chowdhri, Director, Helion Venture Capital
  • Suresh Narasimha, Founder & CEO, TELiBrahma Convergent Communications
  • V. V. Ravindra, Managing Director, Idea Brahma

The discussion was riveting and inspiring with this star speaker lineup. Below are the key points of discussion from this seminar :

Karthee’s keynote :

  • Globally, there exist 6 billion wireless connections now out of which 1.6 billion are 3G connections. This number is expected to swell to 3.1 billion 3G connections by 2015. Also, by 2015, emerging markets will contribute 50% of smartphone market share.
  • A smartphone is now a full blown computing device. A smartphone now embeds more and more electronic functions like camera, GPS, watch etc. Tight silicon integration is driving this trend. Mobile processors now offering full windows experience Eg Windows 8 may run on the same processor has as the Windows 8 phone.
  • As to India, in 2012, 200 million phones are expected to be sold in India. By 2015, 300 million phones will be sold in India. Smartphone sales will multiply by 4 times in India by 2015, compared to now. At the same time, the costs of high-end smartphones keep falling.
  • Another great trend is that of the rise of mobile broadband users in India. Today, there are 52 million active users in India. 42% Facebook users in India are mobile users. India has 37 million 3G HSPA users today.
  • India is very interesting in that, here, a phone is the first computer for a user, it is often the first camera as well as it is the first gaming device a person might have.
  • India has a huge amount of mobile opportunity. In fact, for India, mobile may be the only primary computing device which a huge amount of users might have.
  • 3G tariffs have dropped drastically in India. India is one of the cheapest 3G markets now, anywhere.
  • There was a time when there were hardly any Indian-brand devices. Now India has seen several homegrown device brands – who have increased market share using innovative strategies like dual SIM or Tier 2 market penetration. Indian brands like Micromax and Lava now own 20-30% of the market in India.
  • There are too many apps now and app fatigue exists, however good apps can still see a bright future.

Karthee also mentioned about the Qualcomm program to find successful startup models – this program is called the QPrize and it has total 1 million USD available in prize finding. One of the previous QPrize winner has been Capillary Tech.

Question : Is mobile apps just extension of VAS ?

Vamshi – Apps are to engage and entertain customers as far as Service Provider is concerned. Monetization of Apps, however, does have a VAS feel in India.

Suresh – TeliBrahma had decided early on not to work with operators and focus on domestic markets, however it is now trying to work with operators and is also marketing abroad. Advertising is a tough market. Need a billion impressions to make 1 million dollars.

Rahul – Their firm is concious that VAS market is challenging. As to working with carriers, it is a country specific issue and mostly an Indian problem. Mobile payments is a tough business to crack (but one of Helion investments ngpay has succeeded after some efforts). App monetization is generally difficult, somehow apps have to go local to add value. B2B2C seems to be a monetization model so far.

Question : How to make money on apps ?

Ravindra – To make money, need persistence. Positioning is important. For mHealth, doctors have to be targeted. App Store is not a good model – need to go through B2B channel eg via clinics or other healthcare firms. Selling via B2B2C seems only viable option in India to make money so far.

Vamshi – Apalya is selling via operators and direct to consumers also now. Collecting money today is via operators – that is one of rare ways to collect money. Apart from that, app monetization is very hard. Sheer persistence is key to get to inflection point in environment. Collection agent today is service provider. Another model – Vodafone is trying to act as change agent and willing to take only 30% app revenue share
similar to the app stores. Discovery thru app stores etc is hard.

Manik – with app stores, mobile social networking or mobile travel firms are hot again. Mobile is anytime anywhere location-based experience. Internet penetration is low but mobile penetrations is high. Especially, targeting tier two cities and local language support can help.

Social networks in India and search are in India are not promising as global guys do this. Mobile Commerce or m-Commerce requires local people, and hence is promising.

Angry bird started with a Finnish operator first, and then reached scale. And then Apple accepted them.

Rahul – ngpay – primary monetization is via payments. It has been difficult for ngpay in the beginning. Making money directly from end users is hard but possible.

Question : Paid apps vs ad-based apps?

Suresh – brand advertising is interesting but it is not easy. Eg Angry Birds became success after Rovio had tried many other apps. Mobile CPMs are too low compared to web CPMs. Mobile ad based revenue is not a viable model. White label apps do not work as IP gets transferred to the customer.

Manik – has a mobile advertising firm-vserv – in app advertising. It is early days for sure. if a firm has a little bit success, need to promote that. Eg Angry Birds. Long tail for mobile advertising in India is quite long. Only two media agencies in India have a dedicated mobile guy. Digital ad budgets will double at least in the next few years. But next growth has to come from mobile. Clearly there is a shift in positioning.

India has 900 million subscribers. So critical mass is there. Vserv has 60 million addressable users.

Vamshi – Angry birds focused on viral marketing.

Ravindra – India is about sheer size. Just smartphones are 15 million.

Rahul – invested in Dhingana. If one has a single app firm, need to have a deep app. Stay in low burn mode. Show engagement. Dhingana is radio ad market as radio has 100s of crores in ad revenue

Predictions :-

Manik – IDG is bottom up firm. Sees app opportunities in :

1) Infrastructure and enablers – eg advertising , security, discovery
2) enterprise mobility – still very new in India
3) cool movie movie hits type approach

Rahul –

1) B2B2C model is promising, that is hwere mobile and tablets are interchangeably used.
2) LBS services can be interesting
3) Global markets are promising

Karthee – Tablets are interesting – have a larger screen.

Vamshi – tablets market is still very small.

Suresh – tablets are promising. Eg winstores on tablets. Tablet will be bigger than PC at some point.

Ravindra – very bullish on tablet growth. Everybody knows tablets now and people understand their use now. People see PC replacement to a large extent. Clinics are good use cases for tablets. As doctors and radiologists are small compared to population, healthcare sector needs productivity improvements using mobile devices.

August 16th, 2012

Is e-commerce boom already in India? Probably not…

Google, India, Rajan, Anandan, Google India Managing Director Rajan Anandan gave a fascinating talk to a Geeks on a Plane India group this week, giving a snap shot of the data that is driving the consumers, entrepreneurs, trends and investors in the rapidly growing Indian web and mobile markets.

Anandan says: “We’re probably in 1996 in the U.S. in terms of the Internet market in India.” Here’s the stats from Anandan’s deck accompanied with some comments from me in brackets. India has:

  • 1.2 billion people
  • The 9th largest economy in the world, with $1.7 trillion GDP
  • 600 million people below the age of 25
  • 22 languages
  • 250 million in the consuming class — these are the folks that buy e-commerce
  • 900 million mobile accounts, with 600 million unique mobile subscribers (many people have more than one account)
  • 30 million PCs — it’ll be a mobile broadband world
  • Average revenue per user (ARPU) is $3
  • 100 million Internet users, and 120 million Internet users by the end of 2011 that’s about 10% population right now.
  • By 2015 there will be 300 million to 400 million Internet users that would still be about 10% of population then.
  • 37 percent of Internet users access the web from home, 27 percent from an Internet cafe, 22 percent from an office, 3 percent from school
  • There are 50 million mobile data subscribers
  • 5 million access Internet only on the phone but still most of them don”t buy through m-commerce
  • In 2010/2011 e-commerce emerged as a $7 billion market, with $6 billion of that going to online travel
  • By 2015 the e-commerce market is expected to be $40 billion (how will 47 e-commerce companies present in India right now survive until 2015? )
  • 67 percent of e-commerce customers buy electronics and cell phones. 18 percent buy apparel.
  • 15 million 3G mobile subscribers
  • Broadband is 250 kbps to 500 kpbs fixed line
  • The use of smart phones will grow 52 percent CAGR
  • There are 37 million Facebook users
  • Google Plus use is bigger than Twitter use
  • 23 million unique users on YouTube India
  • There will be $1.3 trillion in online ad spend in 2011
  • The English Internet will not scale beyond 200 million, says Anandan
  • 159 million read Hindi newspapers and 31 million read English newspapers
  • There will be a massive tsunami toward vernacular content on the web, says Anandan
  • 70 percent of non-travel e-commerce is “cash on delivery” (no online payments, buyers pay cash when goods are delivered)
  • This cash on delivery market has a 30 percent return rate
  • Web 1.0 and 2.0 are happening at the same time in India, says Anandan.

Some Internet sites that have found success in India:

Considering numbers above, anybody feeling that e-commerce is here and now and they will miss the boat if they don’t enter now can re-think as even if they start 1-2 yrs. down the line, they would be good as internet penetration is still low and more purchase is happening in COD mode than online mode. But, if people feel it would be good to have presence now online so that they are ready when actually penetration rises, then my personal suggestion would be to have enough cash to be able to sustain until then.

For some time, people willing to enter e-commerce have been asking us if they should have wapsite or an app, we have been advising them to have wapsite now and apps soon as in long run leaving either will be a wrong decision.

What do you think about e-commerce state in India? I would love to see your comments…

(via GigaOm)

December 15th, 2011

The Indian Web and Mobile Markets by the numbers

(excerpted from GigaOm Pro article at http://t.co/20B9JVyo)

Katie Fehrenbacher with Gigaom is traveling with Geeks on a Plane in India. She writes following stats provided by Google CEO Rajan Anandan to the Geeks on a Plane group :

Rajan Anandan on Indian internet scene : “We’re probably in 1996 in the U.S. in terms of the Internet market in India.”

Here’s the stats from Anandan’s deck. India has:

  • 1.2 billion people
  • The 9th largest economy in the world, with $1.7 trillion GDP
  • 600 million people below the age of 25
  • 22 languages
  • 250 million in the consuming class — these are the folks that buy e-commerce
  • 900 million mobile accounts, with 600 million unique mobile subscribers (many people have more than one account)
  • 30 million PCs — it’ll be a mobile broadband world
  • Average revenue per user (ARPU) is $3
  • 100 million Internet users, and 120 million Internet users by the end of 2011
  • By 2015 there will be 300 million to 400 million Internet users
  • 37 percent of Internet users access the web from home, 27 percent from an Internet cafe, 22 percent from an office, 3 percent from school
  • There are 50 million mobile data subscribers
  • 5 million access Internet only on the phone
  • In 2010/2011 e-commerce emerged as a $7 billion market, with $6 billion of that going to online travel
  • By 2015 the e-commerce market is expected to be $40 billion
  • 67 percent of e-commerce customers by electronics and cell phones. 18 percent buy apparel.
  • 15 million 3G mobile subscribers
  • Broadband is 250 kbps to 500 kpbs fixed line
  • The use of smart phones will grow 52 percent CAGR
  • There are 37 million Facebook users
  • Google Plus use is bigger than Twitter use
  • 23 million unique users on YouTube India
  • There will be $1.3 trillion in online ad spend in 2011
  • The English Internet will not scale beyond 200 million, says Anandan
  • 159 million read Hindi newspapers and 31 million read English newspapers
  • There will be a massive tsunami toward vernacular content on the web, says Anandan
  • 70 percent of non-travel e-commerce is “cash on delivery” (no online payments, buyers pay cash when goods are delivered)
  • This cash on delivery market has a 30 percent return rate
  • Web 1.0 and 2.0 are happening at the same time in India, says Anandan.

Some Internet sites that have found success in India:

Thanks to Gigaom for the above post.

December 14th, 2011

Mobile Apps Innovation Report, 2011 now launched…

Essential reading for companies, brands, ad agencies, publishers and developers, CellStrat Annual India Mobile Apps Innovation Report is the first of its kind Market Research project in India dealing with the subject of Mobile Apps and Web innovation in so deeply.

Mobile Apps, App Stores, Mobile Web – the new phenomenon in the Mobile world. Apple iPhone and Apple AppStore have unlocked a new Business Model for developers, brands, infrastructure providers and OEMs. Apple’s 350K apps (as of April 2011) and more than 10 billion downloads has brought the App Revolution to the forefront of technology evolution. You want to play a game – there are thousands of app for that, you want to pray to god – countless apps for that too, you want to watch your weight or track your grocery expenses – there are numerous apps for that too. You name it – “There is an App for that”.

Taking Apple’s lead, Google Android, RIM BlackBerry, Nokia Ovi, all other OEM makers as well as many wireless carriers started apps stores. As of this writing, we count more than 100 app stores (yes you got that right, 100) from global vendors and several others in the pipeline. Whether it is Handset makers, Mobile Carriers, VAS providers, Mobile Marketers, all are either producing App Stores or leveraging the App phenomenon in some fashion. Mobile Apps and App Stores have unleashed the potential of the Mobile Web – the new face of The Global Internet.

– How are Mobile Apps doing in India ?

– What is the adoption of Smartphones in India which can run Apps ?

– What platforms are popular in India ?

– What Mobile OSes should you develop for ?

– How do you leverage Mobile Apps for Marketing and Engagement ?

– What is the state of India’s native Apps and App Stores ?

 

To answer these questions and many more, CellStrat brings you the India Mobile Apps Research Project. This research initiative analyzes the Mobile Apps ecosystem in India and has garnered feedback of App efforts by marketers, consumers, brands, technology firms and app developers. This project provides invaluable research insights into the Mobile Apps and their proliferation in the Indian context.

Some of pointers from report for our readers are given below:



Mobile Apps Survey Participation Mix

Mobile Trends

CellStrat Mobile Apps Survey indicates that Android is getting the maximum budget allocation followed by the iPhone. Interestingly iPad is catching up fast on the budget scale and Blackberry does well as well. There is also good interest in Airtel App Central, probably due to the reach and scale of Airtel as a carrier. But, certainly, Android, iPhone and iPad are getting the maximum budgets from firms interested in App development.

Budget Allocation for Mobile Apps Development

 

App Platforms Selection factor weightage

When quizzed about what factors impact the selection of App Platforms, the response was widely distributed with certain factors like wireless carrier support, maturity of business model and presence of App Store being slightly more important than other factors. Interestingly, carrier support was the most important factor when choosing the App Platform. Surely, India is carrier-centric when it comes to App support. Over time, one expects firms like Apple and Google (and probably Nokia and Blackberry) to gain the upper hand in this selection process, tracking global cues on this front.

The CellStrat Annual Mobile Apps Innovation report provides invaluable insight into the Indian Mobile App environment. Indian firms are, so far, only experimenting with App development and using Apps as engagement and media channels. This market still has some ways to go in India. It is ripe for innovation and specifically, India-oriented innovation. In summary, the App market in India is severely under-penetrated and many stand to benefit from the upcoming App proliferation, right from brands, carriers, consumers as well as the developers.

Report is available for purchase. Kindly contact us to place your orders or for any further inquiries.

August 3rd, 2011

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