Showing posts with label Internet. Show all posts
Showing posts with label Internet. Show all posts


Understanding the Indian Digital Consumer

I attended a talk recently by business analyst & strategy consultant, Mr Mohit Chhabra, (currently, Business Head at Skillment Edu) on the rise of the digital consumer in India. Mohit, who is also closely associated with TED gave his audience great insights on the digital revolution that is sweeping the country aided by the penetration of mobile phones in India. Contrary to the general perception that social media/digital platform is an urban phenomenon what emerged during the talk and discussions was that the growth of the digital medium in India will, in fact, be pushed by demand from rural India. According to Census projections of 2010, Government of India, there are 164 million households in rural India - 70% of the population - and this group loves their mobile phones!

There are 3 Indias according to Mohit:
  1. The Metropolitan India
  2. Rur-ban India
  3. Deep Rural India (the group that loves their mobile phones the most.)
In a really interesting example, it was demonstrated that while consumers in India rarely pay (or prefer to pay) for their own education but when it comes to entertainment, have no qualms in spending. In 'deep rural' India, there is a huge demand for entertainment and it has been found that the favorite entertainment device for rural India is the mobile phone. This demand for entertainment according to Mohit will drive adoption of social media and rise of the digital consumer in India. Communicating to 'deep rural India' digitally is more effective if it serves this most important demand - something that communicators must be aware of - the plank of entertainment. I have included Mohit's presentation below:

Indian digital consumer
Suggestions/Critiques welcome.

-- Madhur


McKinsey report: One-third of the global population connects to the internet everyday

The McKinsey Global Institute (MGI) and McKinsey’s Technology, Media and Telecommunications practice's report - ‘Internet matters: The Net’s sweeping impact on growth, jobs, and prosperity’  has come up with interesting  India related findings. This reinforces the importance of the medium to boost commerce, exchange, conversations and progressive political and social values. The report stated that, in India, Internet contributed five per cent to the growth of gross domestic product (GDP) in the last five years, two percentage points higher than the average three per cent for BRIC economies. Significantly, it also stated that,
"India and China are strengthening their position in the global internet ecosystem rapidly with growth rates of more than 20 per cent..."
Talking about the growth of Internet, the report states,
"Since the 1990s, internet has grown leaps and bounds with about two billion users worldwide now. This number is growing by 200 million each year. This means, almost a third of the global population connects to the internet every day and almost $8 trillion a year is spent through e-commerce... 
 ...India leads the growth component of the McKinsey Internet Supply Leadership Index. For example, Bangalore registered 50 patents to 200 in fours years, compared to Singapore which took six years to cross this threshold"
The report has established a clear linkage between internet and growth and has recommended that policymakers push for increased internet access and usage. Crucial to achieving this is a strong public-private partnership. We would definitely see more and more people getting online now, even in India, and this is a medium that would eventually become dominant for business, politics and human interactions. Hence it is important for public diplomacy practitioners to accept the medium as pervasive and strong on influence, and, in a world dominated by corporate media, sometimes it can be more credible and an effective platform for an alternate point of view.  

Suggestions/Critiques welcome.

-- Madhur
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