Connected Consumer

Nasscom |September 03, 2015 Shiv | PepsiCo

The

Connected to What?

We live in a Mobile first, digital world.

Time taken for 50M usersIdea Years

Radio 38 years

TV 13 years

Internet 4 years

Ipod 3 years

Facebook 200 mln per annum

Digital Products AdoptionMarket Mobile

Penetration %No. digital

devices ownedGDP per capita

(PPP)

Uganda 80% 1.5 $1,370Tanzania 77% 1.4 $1,750Ghana 100% 2.0 $3,880India 75% 2.0 $5,350South Africa 85% 2.3 $12,240UK 100% 6.0 $35,760USA 100% 6.0 $53,960Spain 100 % 7.0 $31,850

*Multi SIM leading to high mobile penetration in some markets

GDP # of Countries # of Devices< US$2000 53 Countries 1.4 Devices

US$2000 – US$5000 39 Countries 2 Devices

US$5000 – US$10000 32 Countries 2 Devices

US$10000 – US$20000 31 Countries 2.3 Devices

US$20000 – US$50000 37 Countries 6 Devices

US$50000 – US$160000 17 Counties 6 Devices

GDP Versus # of Devices

Connected to their Passions?

Connected to Friends?

Youth: Free Time

89% on a Social Media platform instead of TV

6-8 Hrs on Social platforms; 1-2 Hrs on TV

Also on a second device while watching TV

Common Belief RealityWho is online? Metros 34% - Tier 2, 3 & 4

25% - Rural

What is the age group? 18 -25 years affluent 57% urban users> 25 yrs

Expected to be > 70% by 2016

Why are Indian users online?

Deals & Discount driven 30% - Discounts37% - Convenience29% - Variety4% - Others

What impact does the internet have?

Commercial impact overstated; eCommerce limited

40% - engage in digital activity during purchase process13% purchase online

Common Belief v/s Reality

A Good Mobile ExperienceExperience % Recommendation %

China 95 95

India 96 95

Brazil 93 91

UK 82 67

USA 77 72

Germany 71 63

Global rank % Different

1. Social networking 82%

2. Music 81% Music is No 1 in India

3.News 78% China, Vietnam, News is the leader

4.Gaming 65%

Brands and Passions

Brand sites Local Global

Content is best 52 70

Latest information 56 70

Trust 64 69

Purchase satisfaction 74 52

Content in language I understand

78 53

Content is easy 76 51

Relevant content 67 56

Local vs Global Digitally

Connected to Commerce,Health,

Banking and Education?

Personal care 42%

Cosmetics 40%

Pet products 36%

Food and beverages 38%

Baby Care 36%

Alcoholic Drinks 22%

All India - Will Buy Online

Rural - Reasons for not buying via eCommerce

• Don’t trust the internet• Don’t know how to access the internet• Product quality is not reliable• Price is higher• Poor after sales• Poor company web site• Payment is not convenient

Rural - Reasons to buy Online

• Explanations about usage• Channels tailored to my needs• Rewards• Ease of access• Easy return policy

Summary