As many of you are awaiting Marry Meeker’s Internet trends 2017 reports which is considered as “bible” for investors as well. Well the report talks much about #India and focuses on how the market will grow amidst intense rifts. She is a partner with Kleiner Perkins Caufield & Byers and she is a legendry in tech industry and the Silicon Valley. She shares her analysis reports with insights as a deck of slides about the progress of internet and the use of internet in the world.
The report where presented at Recode’s Code Conference at the Terranea Resort in California. It is an interesting fact that the entire report consists of 355 slides and the wholesome of 55 slides are entirely dedicated to India that indicate the importance of Indian marketplace.
Here are some important takeaways that indicate the importance of India:
- Internet market of India keeps on increasing and its popularity grew up to 28 % in mid of june 2016 with yearly growth of 40%. It stands at 355 million internet users and remains behind only China that aligned India at number two position in the market. However, only 27% Indians use internet which means that it is a long way before India crosses the 50% mark in internet penetration.
- India stands at number one position globally for spending time on Android. Well the number of App downloading in Google Play has taken over the number registered by US in 2016 and it clearly shows the speed with which Indian market is growing. And this data is coming from the set which excludes China since it doesn’t have an official Google play store.
- Smartphone shipment of India also continues to grow at the rate of 15% including the first quarter of the recent year. Report also shows how the Indian market has changed in context of Smartphone. Report compares the Indian Smartphone marketplace with China which continues to grow with Xiaomi, Vivo, Oppo, etc., whereas India makes a strong position with Micromax, Lava, and Jio in the arena of 4G featured Smartphone.
- She explained how Micromax, Karbonn, Lava like Smartphone players have been trying to get a place in feature phone market share but average selling price (ASP) has fallen down amid of 2014-17. Whereas the market of Lenovo, Oppo, Xiaomi, and other Chinese players have been struggling for quality features but now the market becomes stable and more importantly the existence of Reliance Jio intensified the rifts in the market.
- India’s mobile traffic is 80% which is far greater than global average and is placed at second position just behind the Nigeria.
- Report also revealed that Internet usage time by Indians is almost 45% of the time they spend on mobile phones. Weekly time spent on mobile is 7 times of time spent on TV. Activities included while using of internet are:
Search, messaging and social medias: 34%
News and media: 2%
- Telecom market sector is greatly affected after entrance of Jio. Airtel, Idea, and Vodafone together have 60% share of broadband but after Jio’s entrance they have to cut data rate. There is an intense rift among all of them to attract customers. India witnessed 10% decline in data cost per GB on a quarterly basis. Voice calls declined by 4% per quarter. Jim’s entry in the market made the existing players to lose customers and forced them to cut down their data price. By March’17, data prices were sliced by 20% by existing users and if Jio is to be included, the average cost of 1 GB was Rs 21.
- Apps and browsers in India also presented an interesting fact. When it comes to browsers, Google Chrome stands at second position by acquiring 32% of the market share whereas UC web of China beat it by acquisition of 50% of the share.
- Whatsapp is the most downloaded app in India after Facebook messenger. In the Top 10list of the most downloaded app, there are 4 US’s apps, 4 Chinese apps, and only 2 apps from India including HotStar and JioTV.
- She also mentioned in her report about that low data cost is because of intense competition among service providers and government policies as well. Narendra modi’s policies like Digital India which focuses on online payment using UPI that boosted the digital revolution of India also took special place in her reports. Report also mentioned that still cost of data is not affordable for a large group of customers and devices as well which causes fall in price.
- Report also talks about Adhar card trends that have covered almost 82% of the population. It also revealed that UPI based online transactions via mobile stood at $359 million till March of 2017. All of these changes goes in to account of online and offline commerce.
- Ecommerce analysis of Merry Meeker states that there are intense rifts among Indian ecommerce players like Snapdeal, Flipkart, Paytm, Amazon India, and Shopclues. There are lots of changes that happened this year like Snapdeal sale, Amazon’s strategy, and Paytm stretches its leg in to payment bank arena. Amazon India has enhanced its sellers and inventory and acquired a 3 times of growth.
Some of the takeaways for the world are:
- While in online queries, voice is going to completely replace typing. In 2016, 20% of mobile queries were submitted by voice input with accuracy range of almost 95%.
- Growth rate of global Smartphone usage keeps on decreasing which becomes 3 % which was 10% in previous year.
- Netflix in US achieved 30% from 0% of home entertainment revenue in its 10 years.
- Entrepreneurs are still fascinated towards gaming. As per Meeker, Mark Zuckerberg, Elon Musk and Reid Hoffman are become fans of gaming. Interactive gaming becomes more accepted at global level and records 2.6 billion gamers in 2017 whereas this number was 100 million in year 1995. China holds the top position in this arena.
- China still is a fascinating market for mobile services and payment market.
- Internet growth rate is slow on global level but India is an exception as explained above.
- Healthcare: wearable gadgets are becoming popular with 1 out of every fourth American having one. The overall increase in this arena is 12% from 2016. Leading tech brands have established themselves in the arena, where almost 60 percent users were willing to share their health data with Google and other such brands in 2016.