Mobile data usage in India is at par with developed markets

Based on a survey of 3400 customers, the report reveals three key characteristics which affect India's digital ambition.

By Priyanka Dua

    India has the potential to unlock over $50 billion online commerce by driving awareness, usage, and transactions among the current and next set of internet users and shoppers, as per the new report issued by Bain & Company, Google and investment firm Omidyar Network.

    Mobile data usage in India is at par with developed markets

     More than 500 million Indians who will constitute the next wave of online consumers.

    The report also captures the changes in India's emerging Internet landscape over the last few years. Its findings show data usage on mobile is at par with developed markets (8 GB/month/subscriber).

    Arpan Sheth, partner, Bain & Company and one of the authors of the report, said, "While online spends are still low given lower per capita incomes, there is huge potential to unlock value by addressing user concerns at various stages of the digital curve; however, the path won't be easy for businesses and they will have to innovate and be patient to monetize this user base and generate value."

    Based on a survey of 3400 customers, the report reveals three key characteristics which affect India's digital ambition.

    Of the 390 million Internet users, 80 percent are from affluent socioeconomic segments and penetration amongst lower income segments is only 13 percent, the findings showed.

    It also showed that only 40 percent of the Internet users today carry out digital transactions. The remaining 60 percent do their research online but complete the transaction offline.

    As many as 54 million users today have not carried out a transaction after the first trial purchase, the findings showed.

    With an average of 40 million new internet users added per year to online transactions, then it highlights that only 40 percent of India's 390 million internet users transact online," Vikas Agnihotri, Industry Director, Google India said.

    The report also pointed out that, it takes three to four months for a typical internet user to make the first online transaction, which makes it very critical for companies to retain customers through content.

    Furthermore report said that despite the growth of the internet user base in India, online spends will remain limited due to the relatively low per capita GDP in India.

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