India digital means explosive growth in mobile internet, vernacular, video viewership and mobile payment

1. With more than 460M+ users, internet penetration in India is relatively low and the growth potential is huge

Internet Users in india 2018 2022

2. More than 90% of internet users in India accessing the internet via mobile devices

Mobile Phone Internet Users in india 2018 2022

3. Given that 70%+ of Indian population is under 40 years old, we expect the same ratio with India internet population

india population pyramid 2018

Indian internet population is more male skew and younger than the overall population, which makes sense given that mobile internet really took off only a few years back.

demographics of internet users in india in urban and rural 2018

4. With the higher growth of non-English internet population, vernacular is not a surprising reality

internet poluation by english and non english 2018 2021

The split between urban and rural India when it comes to frequency of internet usage is not significant

frequency of internet usage urban vs rural india 2018

5. India GDP per capita on Purchasing power parity basis is half of that of China or Brazil and about 30% lower than Indonesia

india china brazil indonesia gdp per capita ppp

This lower level of income has a logical impact on consumption (online or offline) in India versus other markets.

India GDP growth rate has cooled down, though still at a high level. According to Press Information Bureau, Q2 (Jul – Sep) 2018/2019 GDP growth rate was at 7.1%.

6. Overall India is still a TV market, with nearly 60% time with media spent on TV

In terms of growth in time spent, while digital is leading (at 11.5%), it’s not by much against TV (6.9%)

Growth in Time Spent with Media in india 2018

7. Similar to other countries, more than 50% of internet users in India watch digital video

Digital Video Viewers india 2018 2022

However, if we look a bit deeper, only around 30% watch digital video using smartphones, which means a significant percentage of people are using feature phones or hybrid phone to watch video.

Smartphone Video Viewers india 2018 2022

8. Proximity mobile payment penetration in India is on par with the rest of the world and actually higher than North America, the UK or Japan

9. Digital buyer/shopper penetration in India is understandably lower than developed countries and on par with developing ones

China is an outliner since it is still a developing countries but already transformed digitally to be similar or more advanced than developed countries.

10. Subscription OTT Video penetration in India is still low, which shows significant growth headroom

That’s all from me. Thanks,

Thanks,

Chandler

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