India: Digital Retail 2020

Massive Potential

$ 2.25 tn, GDP

1.27 bn, population

462 mn, internet subscribers, 34.8% penetration371 mn, mobile internet users

151 mn, broadband subscribers

Source: Report: ‘Future of Digital Content Consumption in India- January 2016’ by Earnst & Younghttps://www.statista.com/statistics/263771/gross-domestic-product-gdp-in-india

http://www.internetlivestats.com/internet-users/india//https://www.statista.com/statistics/467163/forecast-of-smartphone-users-in-india/

http://www.trai.gov.in/WriteReadData/WhatsNew/Documents/Press_Release_No.49_20_june_2016_Eng.pdfhttp://www.assocham.org/newsdetail.php?id=5669

Rise of the Indian internet user base to over 550 million by

2018

Government Initiatives, Digital India Mission

Affordable Access, 3G & 4G penetration

Smartphone Adoption, Outpacing feature phones

India Focus, Google is partnering with the government’s skill development arm to train 2 million developers in India. It will roll out free public wi-fi spots in 100 Indian train stations in the coming year.

Source: Report: ‘India @ Digital.Bharat-January 2015’ by Boston Consulting Group

Women expected to constitute 1/3rd of the online population by

201844% of total household spend in India is controlled by women. The shift will have a major bearing on India’s online economy

Women will double the share of their current online spend by 2020

Lifestyle Goods & Personal Care amongst the Top Three Purchase Preferences of the female internet user

Source: ‘India @ Digital.Bharat-January 2015’ by Boston Consulting Group,

‘Digital Retail in 2020, rewriting the rules- May 2016’ a Google- A.T. Kearney Study

Growing power of social media

Social Media users doubled in past 2 years

New CRM Tool, brands sharing, listening & responding

Blogging sees traction in 2016. Now a million dollar industryCelebrities of tomorrow defined by social media

Hyper-location based businesses seek social supportSocial commerce gains traction. Social Media now integral to purchase cycle

Source: Report: Indian Media & Entertainment Industry-2016’ by KPMG

Online shoppers will grow more than 3XWomen will more than double their share of online spend

Digital retail 2020 - the Online Shopper

Online marketplaces will play a key role in enabling the growth of seller ecosystem

Source: ‘Digital Retail in 2020, rewriting the rules- May 2016’ a Google- A.T. Kearney Study

Digital Retail in 2020

Different purchase needs & behavior than today.

THE ONLINE SHOPPER

Difference in online purchase inspiration

CHANGE IN PURCHASE PATTERN

Shopping channel, device & payment preference

PURCHASE EXECUTION

Category preference & purchase drivers

CHOICE ALTERATION

India is the fastest growing e-commerce market in the World Growing at an annual rate of 51%. India's e-Commerce revenue is expected to jump from $30 billion in 2016 to $120 billion in 2020.

Source: http://www.assocham.org/newsdetail.php?id=5669

Accessibility & Convenience will be the top purchase driversPurchase cycle will be influenced by Supportive Digital Content

Digital retail in 2020- The Purchase Pattern

Source: ‘Digital Retail in 2020, rewriting the rules- May 2016’ a Google- A.T. Kearney Study

Lifestyle will overtake consumer electronics as the largest e-tail category by 2020Personal care will see a 200% increase in e-tail penetration

Digital retail in 2020- Choice Alteration

Source: ‘Digital Retail in 2020, rewriting the rules- May 2016’ a Google- A.T. Kearney Study

Product availability is the strongest e-purchase driver for consumers in tier 2 & 3 cities

Mobile as a device will further strengthen it’s share of e-tail spend. M-commerce could contribute up to 70% of e-com revenuesPlayers lacking a strong omni-channel presence can lose 20-30% of potential buyers

Digital retail in 2020- Purchase Execution

Source: ‘Digital Retail in 2020, rewriting the rules- May 2016’ a Google- A.T. Kearney Study

COD will continue to be the dominant payment mode. Share of COD transactions will see a decrease

In Sum

India Offers a massive opportunity for digital explosion (GDP, mobile internet penetration & largest young population in the world). Govt funding ‘Digital India’ campaign & massive infrastructure drive around 4G tech Women to be 1/3rd of internet users by 2018 & expected to double share by 2020. Social Media is turning out to be the most important medium to engage with the consumers.Unprecedented traction in Ecommerce/E-tailing. This is changing the way Indians are shopping.