This document summarizes the results of a consumer mobility and e-commerce survey conducted in India. Some key findings include: - Android was the dominant mobile operating system with 76% adoption. - 34% of respondents shop online at least monthly, while books, travel, shoes and electronics are most commonly purchased categories. - E-commerce websites are an important source of product information, used by around 50% of consumers prior to purchases. - Credit/debit cards are the preferred online payment method, used by 48% of respondents overall. - Peer recommendations and TV ads are the primary drivers of traffic to e-commerce sites. Concerns around product quality and delivery are key deterrents to online shopping

1. 23:22
23:22
Sunday, January 19, 2014
Consumer Mobility & E-commerce Survey

2. 23:22
Consumer
Mobility
Demography
E-.commerce
Contact Us

3. 23:22
Respondent Demography
Survey period (Oct- Dec, 2013)
Total Respondents - 1016
Location: NCR and adjoining sub-urban areas
72%
28%
Female
41%
Male
38%
11%
8%
2%
Less than 20 21-25 years 26-40 years 41-60 years More than
years
60 years
67%
33%
Sub-urban
30%
28%
8%
<3 Lakhs
>10 Lakhs
57%
Graduation
Urban
18%
15%
3-6 Lakhs
6-10 Lakhs Not Earning
30%
13%
Masters and above Matriculation or
Less

4. 23:22
Ecommerce
Devices
Adoption
Payment
Mechanisms
Device Change
Trend
Application
Usage
Place of
Purchase
Spending on
Devices
App
Authenticity
Concern
Ad Clicking
Behavior
Consumer Mobility
Mobility Dashboard
OS Comparison

5. 23:22
Mobility Dashboard
Price of Devices
Device Adoption
•
•
While 83% smartphone
users own Laptop/
Desktop, only 16% own
a tablet
Android leading Mobile
OS with 76% adoption
•
Retention of Smartphones
•
61% of consumers
(aged less than 40)
change their
smartphones in less
than 2 years.
Email, social
networking, gaming, m
ultimedia, internet
surfing most common
use cases
•
On an average, Indian
smartphone users
made the shift from
features phones 26
months ago
App Behavior
Place of Purchase
•
•
App Use Cases
•
Average smartphone
price INR 20.1K and
13.7K for urban and
sub-urban
consumers, respectively
Shift to Smartphones
10% of all smartphones
bought online
15% Windows Phone
sold online
•
•
App Authenticity
Ad Clicking Behavior
•
•
•
54% users care about
app authenticity
Consumer app reviews
best check
87% users download
apps
Overall 83% users do
not purchase any apps
•
63% users don’t click
on any ad
E-commerce and
gaming ads garner
most interest

6. 23:22
Device Adoption
Mobility device adoption
76%
Smartphone users use
Android
Smartphone users also own a
Tablet
83%
16%
Smartphone users also own a
Laptop/Desktop

7. 23:22
Device Change Trend (1/2)
Migration to Smartphone
An average respondent
migrated to Smartphones
26 months ago
Urban:
Sub-Urban:
27 months
Sub-Urban users
23 months
4 months
late
31% new users
Addition of new users every
year

8. 23:22
Device Change Trend (2/2)
Retention of Smartphones
39% users
Retain Smartphones for at least 2 years
Retention of smartphones
for at least 2 years
Urban users
Urban :
more prone to
retain
smartphones
Sub- Urban :
Retention
increases with
Age < 40 years :
Age
Age > 60 years :
42%
31%
39%
56%

9. 23:22
Place of Purchase (1/2)
Online Device Purchase
10% Smartphones
are sold online
Income > 10 Lac :
Income < 3 Lac :
Windows
Phones fare best
in sales through
e-retailing
18%
Affluent
6%
users more likely
to purchase
phones online
Devices :
~15%
Devices :
~10%
Devices :
~4%

10. 23:22
Place of Purchase (2/2)
Offline Device Purchase
Multi-brand Organized Retail,
a hit in Urban India
45%
Multi Brand
Organized Retail
52%
Local Mobile
Shop
Urban
Respondents
Sub - Urban
Respondents
25%
Authorized Singlebrand Showroom
25%
Multi Brand
Organized Retail

11. 23:22
Spending on Devices (1/2)
Substantial spending
on smartphones, even in suburbs
18,230
Average Smartphone Price
Urban :
20,150
Sub- Urban :
13,680
*All values in INR

12. 23:22
Spending on Devices (2/2)
Education and affluence
positively influence spending
Income
19,970
Matriculation & below :
11,740
> 10 Lac :
Education
Masters & above :
23,190
< 3 Lac :
14,160
*All values in INR

13. 23:22
Payment Mechanism
Credit/Debit card usage*
high among Urban and Affluent Respondents
Location
Income
Urban :
Sub- Urban** :
41%
5%
> 10 Lac :
44%
< 3 Lac :
20%
*For Buying Devices
**89% sub-urban respondents prefer to pay by cheque/cash

14. 23:22
Application Usage (1/4)
Despite high usage, tendency
to purchase apps low
87%
83%
Respondents
download Apps
Do Not Purchase
Any Apps
26 Apps
6 Apps
INR 417
Average # of
Apps
Downloaded
Average # of
Apps
Purchased
Average
Spending
on Apps
*All figures are for overall respondents

15. 23:22
Application Usage (2/4)
Trends in App Downloads
27%
Male:
More apps downloaded by Male
users compared to females
Urban:
Sub-Urban:
28
22
Female:
28
22
27%
More apps downloaded by Urban
users compared to Sub-Urban
~2x
More apps download by Young
respondents compared with elders
Age < 16-20 yrs: 29
Age > 60 yrs:
13

16. 23:22
Application Usage (3/4)
Trends in Paid Apps
Android users
Purchase and spend highest on apps
Amount spent
on Apps
No. of Paid Apps
downloaded
INR 417
7
INR 340
5
Affluence
Positively Influences download and Spending on Apps
Amount spent
on Apps
No. of Paid Apps
downloaded
INR 760
Income > INR 10 Lac
7
INR 328
Income INR < 3 Lac
3

17. 23:22
Application Usage (4/4)
App Use Cases
83%
95%
Gaming
Social
Networking
86%
Music/Video
High Usage
Among Urban
and Sub-urban
Respondents
Alike
88%
Email
93%
Internet
Surfing

18. 23:22
App Authenticity Concern
~46%* users not concerned
About App Authenticity
Indifference to Authenticity
60%*
<<
Higher in Suburbs:
40%*
Sub-urban
100%*
42%*
<<
Linked with Age:
Urban
60+ years
< 25 years
Checks to Ensure Authenticity
Consumer Reviews
68%**
Developers Profile
27%**
Consultation with
friends and peers
24%**
*Among respondents who download Apps
* *Among respondents who download Apps and are concerned

19. 23:22
Ad Clicking Behavior (1/2)
63% users
Do not click on ads
7 ads* clicked
on an average over the last one year
Male:
8 ads*
Female:
4 ads*
2x
More Ads clicked by males
compared with females
*Among those who click on Ads

20. 23:22
Ad Clicking Behavior (2/2)
Incentivizing Ad Clicking
Interested
Not
Interested
3/4th users
uninterested in sharing demographic data in exchange
of incentives
Ads Most clicked
Gaming
E-commerce
Health and
Wellness
54%*
46%*
10%*
respondents
respondents
respondents
*Among those who click on Ads

21. 23:22
Android, iOS, Windows
1
2
3
4
5
Purchasing from abroadhighest for iPhone
Highest Market share for
Android- (Value and Volume)
Most iPhones purchased
through Authorized Single Brand
Showroom; Android and
Windows phones bought from
Multi-brand Organized Retail
iPhone users pay most for data
and are also highest users of 3G
Android and Windows users
purchase most apps, spending
on apps highest by Windows
phone users. Android users
most concerned for authenticity
of Apps.
Phone usage
6 highest amongfor E-commerce
Windows phone
users
7
Credit card information on
device ecosystem Mostly by
iPhone users
Percentage of
Respondents
5%
32%
2.5%
68%
76%
20%
10%
7%
8%
Authorized
Single Brand
showroom
20%
41%
29%
Multi-Brand
Organized
Retail
40%
30%
43%
49%
73%
51%
19%
43%
15%
7
5
7
Average spend
on Apps (INR)
417
340
541
Concerned
for App
authenticity
56%
47%
51%
Percentage of
Respondents
45%
55%
56%
Percentage of
Respondents
4%
18%
5%
By Value
By Volume
3G data
plan
Monthly spend
>INR 300
Apps
purchased

22. 23:22
Consumer Mobility
Adoption of E-commerce as
E-commerce Info Medium
Top E-com
Websites
Purchasing
Trends
Payment
Mechanisms
Initiation to Deterrents to E- E-com on
E-com Sites com Adoption Mobile Devices
E-commerce
E-com Dashboard

23. 23:22
E-commerce Dashboard
E-commerce Adoption
•
•
34% respondents shop
online at least once a
month
25% do not intend to
do so
•
Popular Purchases
•
Books, Travel tickets &
packages, Electronic
goods, Apparels are
the products most
shopped
Nearly 50% consumers
use e-commerce
websites to research on
products before buying
them offline
•
•
•
40% consumers visit an
e-commerce website
on friend’s suggestion
TV ads initiate 13%
traffic
31% respondents
believe that an
intermediary will help
uptake of e-commerce
On an average 19%
monthly budget spent
on e-commerce by
those who shop online
Key deterrents to e-com
Initiation of E-commerce
Intermediary Relevance
•
Spending on E-commerce
Medium of Information
•
•
•
•
Prefer shop visit: 36%
Quality concerns: 30%
Immediate delivery:
29.7%
Fear of wrong product:
28.7%
Mobility Devices for E-com
•
35% respondents use
their smartphones and
tablets for e-com

24. 23:22
Adoption of E-Commerce (1/2)
Massive e-commerce uptake
Online shopping at least once a month
OVERALL RESPONDENTS :
34%
Similar adoption of
e-commerce among
Males and Females
Female :
34%
Male :
34%
~2x more urban
respondents
shopping online
Urban :
41%
Sub-Urban :
18%

25. 23:22
Adoption of E-Commerce (2/2)
Reluctance to E-com
25% Respondents
do not intend to shop online
10%
Less resistance among
Income < INR 3 Lac:
32%
Income > INR 10 Lac:
22%
Affluent Respondents
3x
More reluctance among
Sub-Urban :
46%
Urban :
15%
Males :
28%
Females :
16%
Sub-Urban Respondents
~2x
More males reluctant
to shop online

26. 23:22
E-com as Info Medium
E-com websites widely used as
Medium of Information
~50% consumers
Use E-com websites to
research on Products
before buying them Offline
Tendency higher among urban
respondents
Urban Respondents :
Sub-Urban Respondents :
64%
20%

27. 23:22
Purchasing Trends (1/2)
Substantial Percentage of
Monthly Budgets spent on
E-commerce
Average share of e-commerce in
expenditures:
Affluent
Respondents spend
higher share of
wallet online
Education positively
influences the
spending on Ecommerce
19%
Income < 3 Lac :
14%
Income > 10 Lac :
19%
Matriculates & less :
12%
Graduates & above :
19%

28. 23:22
Purchasing trends (2/2)
Products most shopped for
Online
51%
Books
47%
38%
Travel
Tickets/Packages
Shoes
46%
47%
Apparels
Electronic Goods
*All figures are for those who shopped online over the last one year

29. 23:22
Payment Mechanisms
Credit/Debit Card payment
Users most comfortable using this
payment model
48% respondents
use Credit/Debit Cards for e-commerce
transactions
Urban
Sub-Urban :
Females :
55%
Males :
44%
36%
Urban :
respondents more
comfortable using
Credit/Debit cards
50%
Female users
more inclined to
using Credit/Debit
cards
*All figures are for those who shopped online over the last one year

30. 23:22
Top E-commerce Sites
Brand recall limited to few
E-com websites
71%
17.3%
30%
E-com
Websites with
Highest Recall
17.5%
29.6%
Unless specifically asked 73% customers don’t
consider IRCTC ticketing as e-commerce

31. 23:22
Initiation to E-com Sites
Peer Recommendations
critical to site selection
Initiation on an E-commerce site:
40%
on Peer Suggestion
35%
Through Product Web Search
13%
Influenced by TV ads

32. 23:22
Deterrents to E-commerce
Key deterrents to E-com
Preference to
visit shops
36%
Immediate
Product
delivery
29.7%
Concerns
regarding
product
quality
30%
Fear of wrong
product
delivery
28.7%
31% respondents
Believe that a local intermediary will help uptake
of E-commerce

33. 23:22
E-com On Mobile Devices
Mobility Devices for E-Com
35% respondents
use mobility devices for e-commerce
Education and Affluence
positively influence use of Mobility Devices for
E-commerce
Smartphones Tablets
8%
33%
Graduates & above :
37%
43%
Income < 3 Lac :
30%
23%
Income > 10 Lac :
40%
41%
Matriculates :
*All values for Smartphone and Tablet users who responded

34. 23:22
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