The Indian Market – An Outsider’s Perspective

What is this Presentation about?

About one of the most Interesting Markets in the World!

OK, Seriously! The Indian Market is...

• Growing• Maybe not growing as fast as we would like it

to• Different in several ways from more traditional

Markets that I have worked in, such as USA

So let us try and take stock of some of these differences

The US Web Presence Market • Internet Users: 280 Mn (87.5% of national population)• Number of Active Websites: 31.6 Mn• Number of Domain Names: 79 Mn

The US Web Presence Market Observations:

• Both Web Design Agencies & DIY Tools have substantial demand

• Almost 60% of SMB Websites are designed by Web Professionals

• Highly mature market with fairly high domain renewal rates

• Several established players with a high rate of consolidation

• Single digit growth rates

India Internet Landscape

Domains Growth in India

The Indian Web Presence Market 

• Internet Users: 354 Mn (28.3% of national population)• Number of active websites: 1.2 Mn• Number of domain names: 2.3 Mn

The Indian Web Presence Market Observations:

• Largely DIFM Market & Web Professionals have substantial demand

• More than 95% of SMB websites in India are designed by Web Professionals (such as you)

• However, domain renewal rates are not there yet (Indian customers don't seem to think a website adds value to the business)

• Several established players and growing consolidation• High Growth Market - over 25% YOY (but should it be

growing faster?)

Comparing Web Presence Customers - by the numbersUSA• 3% Potential CAGR in market size by revenue over the next

3 years• $135 ARPS/yr• 4.1 Avg. number of products per customer 

India• 17% Potential CAGR in market size by revenue over the

next 3 years• $50 ARPS/yr• 1.8 Avg. number of products per customer 

The Indian SMBs/Website Owners• Have far lesser affinity towards technology (except startups

of course)

• Are very focused on their Return on Investment

• Are typically risk averse and this makes them resistant to change 

Let us now understand theircustomers – the Internet Users

Age DemographicsIndia US

18-32 54% 30%

33-44 20% 23%

45-54 14% 22%

55+ 12% 25%

The Indian Internet Population skews significantly younger than the US

Distribution of Internet users among different age groups

The First Adopters of the Internet in India are only reaching a position of influence now!

So here's how I see the Various Players in the Indian Market Trending…

• Internet Users: will form a significant portion of the addressable base for SMBs, with ecommerce thriving

• SMBs: will be forced to adopt to the change and have a basic web footprint on all mediums

• Web Presence Product Companies: have to tackle the challenges that consolidation brings in and build a services portfolio, to stay in the game

• Web Presence Service Companies: will need to position themselves well, in terms of the value that they bring to the SMB

Endurance has always had a strong focus towards helping SMBs get Online Let us take a quick look at some aspects that have also worked for us in the past

Experience in Acquiring Customers

• Tactful Guerrilla Marketing• Smart &Differentiated Positioning• Strong Affiliate Networks• Astute Investment in Advertising

Experience in Retaining Customers• Huge amounts of focus on customer support• Great UI across all products• Simplifying payments - Offering as many options as

possible• Always reaching out to a customer with something that can

potentially add value to his business

Some of this may or may not work in India today, but other ideas might!...

Try A Micro Affiliate Model• India is a Price Sensitive Market - so offers

represent greater value• Imagine a model where you incentivize your

customers to refer you to more

Try A Micro Affiliate Model• Referral Commissions to every Customer

– Rely on word-of-mouth & good reviews– Lower thresholds, lower commissions– Maximize return on marketing spends

• Deliver Personalized & Prompt Customer Service– Make your customer feel privileged & valued– Ensure that the customer recognizes the value in

every purchase and product

Our Success in this Market is tied together, and we love it! :)

The Indian Market is slowly but surely becoming a Giant!