A LOW MATURITY HIGH GROWTH MARKET

Prepared byANUJ KUMAR2nd year MBA

Department of Management Studies

PONDICHERRY UNIVERSITY

INDIA’s INTERNET MARKET

NUMEROUS LANGUAGES

1600 Regional Dialects

22 constitutionally approved languages

1 National Language

The mistake one would make is in equating India as a localized market to another localized market, say Russia, or China or even Brazil. The dynamics are completely different, and in that perspective, India is pretty much unique. The only geography that comes even close to what India is, would be the European Union.

INTERNATIONAL COMPARISIONS

No Indian language is among the top 10 languages in the Internet

INDIA & CHINA DRIVERS FOR GROWTH

INTERNET USERS IN INDIA WILL DOUBLE BY 2015

LOW PC PENETRATION IN INDIA

TIME SPENT ONLINE PER DAY IN INDIA IS LESS THAN HALF OF THAT

IN CHINA

PERCENTAGE OF INTERNET USERS ENGAGING IN VARIOUS ONLINE

ACTIVITIES

MOBILE INTERNET BASE TRIPLED FROM 2007 TO 2009

INDIAN LANGUAGE CONTENT OVER THE INTERNET

Major type of content available in Indian languages can be Classified as:

• Search Engines• Portals• User generated content• Vortals

User generated content

Portals

Search Engines

vortals

• Search Engines

support both English & Indian languages and convert the existing content in English to Indian language.

content in Indian Languages and do not support English search i.e. they search for content only in Indian language.

• Portals

offers e-mail and chat in Indian language.

Done through virtual key boards providing interface in various Indian languages.

Allows the user to directly key in Indian text.

• User generated content

• Includes digital videos,

• blogging

• podcasting

• wikis.

• Vortals

International news sites offering international news in Indian language.

Website of traditional newspapers & news channels offering news in Indian languages.

Portals collecting news from various sources like international news from Reuters, national news from PTI and publishing them in Indian languages.

SEGMENTING THE INDIAN INTERNET MARKET

REGULAR USERS• These internet users consume most of the digital

content in vernacular language.

• Comprises middle class people from Bihar, Punjab, Haryana, Karnataka, Tamil Nadu.

• These users not comfortable with English language.

• Uses internet mainly for cricket updates, news, entertainment, religion, astrology.

OCCASIONAL USERS• Mostly professionals of 24-58 years age

group.• Includes users whose need for vernacular

content is occasional & need based.• Users comfortable & communicate in English

but consumes entertainment & relaxation content like astrology, local news in vernacular language.

“I use English search Engine every time whenever I want business related information. But if I want to read “Gita Sholakas” in Hindi I would got to search engine that facilitates search in Hindi” - Occasional user

RARE USERS

• Includes users whose need for Indian language content is very limited & “episodical”.

• Proficient in English & are satisfied with most of the offering over the Internet.

• Users access internet for a specific activity e.g. listening music or watching videos online.

POTENTIAL USERS

• Most promising segment for vernacular content over the internet & includes

• People from small towns : not comfortable in English but may try internet in vernacular language.

• People from rural areas: potential segment for future. Occupation based use of internet e.g. information on crops, fertilizers, local weather.

INDIA’s TOP INTERNET SITES

• Three-quarters of most popular websites are international.

• Rediff.com – India specific content.

• Irctc.com – Indian Railways site.

• Naukri.com – Job site.

• Cricinfo.com – Cricket website.

• Shaadi.com – Matrimonial site.

INTERNET GROWTH DRIVERS FOR FUTURE

• Each enabler will address a different barrier

which holds back non-users & non-owners

from getting on to the internet.

• These interventions will be a large community

initiatives involving different stakeholders like

government, web sites, search engines,

mobile service providers & content providers.

ENABLERS: SPECIFIC INTERVENTION NEEDED

•Broadband making internet access attractive in homes.•Govt. & corporate programs increasing access in rural & urban areas

•Increasing vernacular online content.•PCs with regional language interface.•Search in regional language.

•Affordable cost of PC.•Proliferation & penetration of cyber cafes in smaller towns.•Increase in disposable income.

•Positive word-of-mouth creating a strong pull.•Ease of convenience pulling in first time users.

Technology Enablers

Access Enablers

Awareness Enablers

Content Enablers

ENABLERS

THANK

YOU