INDEX
Executive Summary
Report Findings a. Overview b. Popular online activities c. Detailed findings from the survey and the smartphone panel i. Messaging ix. Cab Aggregators ii. Video Streaming x. Online Ticket Aggregators–Entertainment iii. Music Streaming xi. Online Ticker Aggregators – Travel and Hotel Booking iv. Online Retail xii. Food Delivery v. Social Media xiii. E-mail vi. Digital Payments xiv. News vii. Gaming xv. Mobile Browsers viii. Navigation
Recommendations from CERC a. Smartphone landscape: Then and now b. Recommendations
Annexure a. Research methodology b. Labels for charts c. Terms and abbreviations
01 Executive Summary 01
Executive Summary
The mobile app usage in India has outpaced the global growth. According to the App Annie report1, India has the second-largest number of mobile app downloads in the world, overtaking the US and trailing only China. The report further states that, the app downloads grew by 215% in 2017 and, on an average, Indians use more than 40 apps in a month, while having a total base of close to 80 apps.
In India, the access to the internet is driven by mobile and there is intense competition amongst the internet content providers and app developers to provide, to Indian consumers, different types of content and services ranging from audio and video streaming to online ticketing to navigation services and more. Some of these apps come pre-loaded on the mobile devices, while others are downloaded from the various app stores and sometimes even sideloaded2 by consumers themselves from other sources. An analysis of the consumer behaviour highlights the ease of downloading and sideloading - consumers frequently download or sideload their preferred apps from the various app stores, the internet or by sharing apk files with their friends and family. It is clear from the survey that users choose apps on the basis of utility / relevance, and NOT necessarily because it’s pre-loaded.
This report is based on a consumer survey designed to understand the app preference of Indian consumers and the reasons driving these preferences. The report captures consumer preference based on top apps identified by Nielsen and does not necessarily represent the entire app universe for Indian consumers.
Disclaimer - Unless specified otherwise, data cited in the report has been derived from the survey and the smartphone panel. The data applies to the survey sample that has been cited in Annexure (a)(vi). 12017 Retrospective – Report by App Annie 2 Sideloading” refers to downloading of an app through a website as opposed to a mobile app store. 02
The key findings of the survey are:
01 The openness of the Android ecosystem has created an extensive and competitive mobile app ecosystem that provides a plethora of choices for the Indian consumers. The consumers exercise informed choice when selecting the mobile application.
There is a significant degree of overlap in categories like browsers (50%), online retail 02 (42%), messaging (48%) and cab aggregators (28%) and consumers often use multiple applications for the same activity.
03 Indian consumers frequently download competing apps and multi-home, based upon the quality of the apps and services.
In terms of preferences, even when presented with both options, there is almost an equal 04 distribution between pre-installed and downloaded apps, signifying that the Indian consumers use apps that they find most useful and relevant.
There is high awareness and usage of third party apps. Consumers download these apps 05 from different app stores, web or even sideload them. 86% users stated that peer reviews and word of mouth are key influencers for choosing an application.
06 69% consumers want enhanced memory on their phones. 03
Online Activity Preferred Application Pre-installed/Downloaded
Messaging Video Streaming WhatsApp YouTube Pre-installed/Downloaded Pre-installed
Social Media Mobile Browsers Facebook Google Chrome Pre-installed/Downloaded Pre-installed
Music Streaming Gaming Saavn Candy Crush Downloaded Downloaded
Online Retail E-mail Amazon Gmail Downloaded Pre-installed
News Navigation UC News Google Maps Downloaded Pre-installed
[Figure 1 - Snapshot of most popular apps and consumer preference]
The Indian consumer is an informed user and exercises choice in selection of apps 02 Report Findings 04 a. Overview
India is a mobile first country. At the end of February 20183, the number of total wireless subscribers in India was 1,156.87 million . The wireless subscription in urban areas stood at 650.03 million and for rural areas at 506.84 million in February 2018. As the mobile devices and data plans become more affordable, internet in India also becomes more accessible. The total number of internet subscribers in India grew by over 23% between 2016 and 20174.
The mobile application usage in India has far outpaced the global growth5. According to the App Annie report1, India has the second-largest number of mobile app downloads in the world, overtaking the US and trailing only China. The app download grew by 215% in 2017. India topped the list for highest monthly average number of apps used and installed. On an average, Indians use more than 40 apps in a month, while having a total base of close to 80 apps. The Indian app market offers a plethora of choices to Indian consumers. In India, peer-to-peer transfer is very popular and apps like ShareIt are often used to share apk files and download apps from multiple app stores and through sideloading. This report was commissioned to understand:
01 If and how Indian consumer exercises choice in selection of apps?
02 What is the attitude of Indian consumers towards pre-installed apps?
03 What are the challenges faced by Indian consumers when using apps?
The report is based on primary survey, draws data from a smartphone panel and secondary sources. The detailed methodology is cited in the Annexure.
12017 Retrospective – Report by App Annie 3Highlights of Telecom Subscription Data as on 28th February, 2018 - TRAI 4Telecom Statistics India 2017 – Report by Department of Telecommunications 5Evolving Behaviour of Indian Consumers on Mobile – Whitepaper by Consumer Voice 05 b. Popular Online Activities
In order to understand the consumer preference and behaviour, we reviewed most popular online activities, as observed from the survey undertaken by Nielsen (Figure-2)
Figure 2 – Most popular online activities as observed from the survey (in %)
16 Navigation 23 22 News 27 24 Online Retail 34 31 E-mail 36 44 Gaming 51 55 Music Streaming 62 66 Mobile Browsers 71 68 Social Media 72 75 Video Streaming 80 90 Messaging 92
Messaging has emerged as the most popular online activity, with users spending over 30 minutes on average every day on messaging applications. Over 90% of the consumers use some kind of messaging application regularly to stay in touch with friends and family. Other popular activities include video streaming, music streaming, social networking and browsing the internet. 06
Figure 2.1 – Most popular online activities as observed from the ODM* panel (Reach in %)
Mobile Browsers 99
Messaging 98
E-mail 89
Video Streaming 86
Social Media 77 Online Retail 74
Gaming 70 News 68 Navigation 59 Music Streaming 45 c. Detailed findings from the survey and the smartphone panel
In this section, we discuss in detail the findings from the survey and ODM panel regarding most popular online activities. An analysis of the consumer behaviour highlights the ease of downloading and sideloading - consumers frequently download or sideload their preferred apps from the various app stores, the internet or by sharing apk files with their friends and family and that users choose apps on the basis of utility / relevance, and NOT necessarily that it’s pre-loaded.
*ODM: On-device metre, for a complete understanding on Nielsen’s smart phone panel, please refer to Annexure (ii). 07 i. Messaging
Messaging is the most popular online activity for the Indian consumers. Over 90% of the consumers use some messaging app regularly to stay connected with friends, family and co-workers. On an average, the consumer spends more than 30 minutes daily on messaging applications. The most preferred applications for messaging are highlighted in Figure 3.
[Figure 3 – Awareness and Regular Usage for Messaging Applications]
Skype 2 14
IMO 5 16
Hike 4 21
48 Facebook Messenger 71 96 WhatsApp 99
Data from the smartphone panel indicates that there is significant overlap between popular messaging apps i.e. consumers use multiple apps to stay connected. As seen in Figure 4, while almost 50% of consumers used both WhatsApp and Facebook Messenger, about 20% used both WhatsApp and Hike.
[Figure 4 – Reach and Time Spent for Messaging Applications: ODM Data]
Using both applications Using both applications WhatsApp only Reach – 51% Hike only Reach – 19% Reach – 48% Time spent on WhatsApp – 33 mins/day Time spent on WhatsApp – Time spent – 22 mins/day Reach – 1% Time spent – 12 mins/day Time spent on Hike – 8 mins/day 31 mins/day Time spent on FB Messenger – 2 mins/day
WhatsApp only Reach – 80% FB Messenger only Time spent – 25 mins/day Reach – 1% Time spent – 6 mins/day 08 ii. Video Streaming
Rising online audio and video6 content consumption is driving the growth of the internet in India. Video consumption increased more than six times since the first half of 2016. From watching sport events to latest entertainment shows, consumers are moving towards the on-demand digital streaming services. On an average, consumers spend 15 to 20 minutes daily watching videos. The online video content is seeing a lot of changes in India with independent creators going mainstream and big broadcasters launching their own OTT platforms. The Indian consumers have rapidly adapted to this change and popularity of players such as Hotstar, Netflix, Amazon Prime etc. is growing. In addition, social media platforms such as Facebook and Sharechat are also becoming an alternate location for watching and sharing videos. The most preferred applications in this category are given in Figure 5.
[Figure 5 – Awareness and Regular Usage for Video Streaming Applications]
2 Google Play Movies and TV 9
Voot 1 9
Joi TV 11 24
23 Hotsar 49 92 YouTube 97
There is a rising trend of using multiple apps for streaming video. As seen in Figure 6, close to 30% of the users used both YouTube and Hotstar.
[Figure 6 – Reach and Time Spent for Video Streaming Applications: ODM Data]
Using both applications Using both applications Reach – 27% Reach – 25% Time spent on YouTube – 22 mins/day Time spent on YouTube – 21 mins/day Time spent on Hotstar – 6 mins/day Time spent on Jio TV – 4 mins/day
Hotstar only Reach – 2% Time spent – 4 mins/day
Jio TV only Reach – 1% YouTube only Time spent – 4 mins/day Reach – 74% YouTube only Time spent – 15 mins/day Reach – 71% Time spent – 14 mins/day
6Rural markets – Rising online video consumption at heart of India’s next internet growth driver – Article in The Indian Express 09 iii. Music Streaming
Listening to songs is amongst the top 5 online activities for Indian consumers. On an average, consumers spend about 15 minutes daily listening to songs on their music streaming applications. The most preferred applications for music streaming are given in Figure 7.
[Figure 7 – Awareness and Regular Usage for Music Streaming Applications]
Wynk 9 15
Hungama 11 22
Saavn 18 29
Jio Music 33 38 36 Gaana 48
Data shows that while users are aware of choices, the degree of overlap is less significant for these applications. As seen in Figure-8, the smartphone panel suggests that about 80% of the users prefer using Saavn exclusively for their music streaming requirements. The primary survey data, on the other hand, indicates that the awareness and usage for Gaana is the highest among the surveyed consumers.
[Figure 8 – Reach and Time Spent for Music Streaming Applications: ODM Data]
Using both applications Reach – 5% Using both applications Time spent on Saavn – 1 min/day Jio Music only Reach – 6% Time spent on Gaana – 1 min/day Reach – 16% Time spent on Saavn – 1 min/day Time spent – 1 min/day Time spent on Jio Music – 1 min/day
Gaana only Reach – 11% Time spent – 1 min/day
Saavn only Reach – 78% Saavn only Time spent – 1 min/day Reach – 84% Time spent – 1 min/day 10 iv. Online Retail
The online retail has been on a steep growth trajectory for over the past few years. Some reports estimate that by 2026, the online retail in India would account for approximately USD 200 billion7 and that India will have over 475 million shoppers. The most preferred applications for online retail are given in Figure 9.
[Figure 9 – Awareness and Regular Usage for Online Retail Applications]
Paytm Mall 8 21
Myntra 7 29
10 Snapdeal 32 50 Flipkart 72
58 Amazon 76
The usage pattern shows strong user awareness and competition. As seen in Figure 10, over 40% of the total users who were a part of the smartphone panel prefer using both Amazon and Flipkart for online shopping.
[Figure 10 – Reach and Time Spent for Online Retail Applications: ODM Data]
Amazon only Reach – 40% Time spent – 1 min/day Using both applications Reach – 43% Time spent on Amazon – 2 mins/day Time spent on Flipkart – 2 mins/day
Flipkart only Reach – 17% Time spent – 1 min/day
7Morgan Stanley Explains Why India’s e-Commerce Market is a Hot Investment Opportunity – Article in Quartz 11 v. Social Media
For the Indian consumer, social media platforms are an important means of staying connected as well as sharing thoughts and experiences. On an average, the users today spend anywhere between 15 to 20 minutes daily on their mobile devices accessing social media platforms. The most preferred social media applications are given in Figure 11.
[Figure 11 – Awareness and Regular Usage for Social Media Applications]
Facebook Lite 6 19
Google+ 6 20 Twitter 5 23 15 Instragram 38 96 Facebook 98
Users are aware of multiple choices for social media applications. As seen in Figure 12, close to 40% of the users used both Facebook and Instagram. The choice of platform depended upon the type of activity. It was also observed that Twitter users tend to spend less time on the application when it is used in tandem with Facebook.
Using both applications Using both applications Facebook only Reach – 13% Reach – 36% Reach – 57% Time spent on Facebook – 32 mins/day Time spent on Facebook – 23 min/day Time spent – 15 mins/day Time spent on Twitter – 3 mins/day Time spent on Instagram – 8 mins/day
Twitter only Reach – 2% Time spent – 8 mins/day
Instagram only Facebook only Reach – 7% Reach – 85% Time spent – 14 mins/day Time spent – 17 mins/day 12 vi. Digital Payments
Post demonetisation, India witnessed an exponential increase in the number of digital financial transactions. It is expected that India’s digital payment ecosystem will grow to USD 1 trillion by 20238. The convenience of not having to carry cash all the time has made digital payment solutions increasingly popular among the users. The introduction of UPI platforms and applications, such as BHIM, Tez, Paytm and Mobikwik, has transformed the industry. The most preferred applications for digital payments are highlighted in Figure 13.
BHIM 9 15
My Airtel 4 18 My Jio 7 19 Freecharge 8 22 82 Paytm 90
Consumers use multiple wallets and mobile banking facilities. As seen in Figure 14, about 30% of the users who were a part of the Nielsen smartphone panel preferred using both Paytm and Mobikwik for their digital payment requirements. Apps for mobile banking show limited overlap as the Indian consumers use apps of their respective banks. In addition, the launch of UPI has reduced friction for inter-bank transfers.
[Figure 14 – Reach and Time Spent for Digital Payment Applications: ODM Data]
Using both applications Reach – 30% Time spent on Paytm – 2 mins/day Time spent on Mobikwik – 1 min/day Paytm only Reach – 53% Time spent – 2 mins/day
Mobikwik only Reach – 17% Time spent – 7 mins/day
8Digital payments in India to reach USD 1 trillion by 2023: Credit Suisse – Article in The Economic Times 13
According to data shared by the National Payments Corporation of India, the total number of UPI transactions rose to 190 million in April 2018, a jump of close to 7% from March 20189. Tez, has been instrumental in increasing the adoption for UPI and accounted for 52% of all UPI transactions in India in December 2017, according to a Credit Suisse report10. The preferred applications for mobile banking are highlighted in Figure 15.
Digibank by DBS 9 18
Axis Mobile 8 22 ICICI Bank Mobile 16 25
HDFC Bank Mobile Banking 17 27 41 State Bank Anywhere 62
9UPI transactions rise to 190 million in April – Article in The Economic Times 10Google is beating the Indian government at its own game: UPI – Article in Quartz 14 vii. Gaming
Mobile gaming has surpassed consoles and PCs. In Q2 2016, India ranked fifth globally by game downloads. It is expected that India will surpass both Russia and Brazil in the coming years11. The most preferred applications in the gaming category are given in Figure 16.
[Figure 16 – Awareness and Regular Usage for Gaming Applications]
Clash of Clans 14 20
Subway Surfers 15 24
8 Ball Pool 17 26 Ludo Kind 24 34 Candy Crush Saga 43 52
It was observed that while users download multiple games, the degree of engagement depended on the type of game. For example, as seen in Figure 17, the users spent twice the amount of time on Clash of Clans as on Candy Crush.
[Figure 17 – Reach and Time Spent for Gaming Applications: ODM Data]
Using both applications Reach – 4% Time spent on Candy Crush – 10 mins/day Time spent on Clash of Clans – 23 mins/day
Clash of Clans only Reach – 44% Time spent – 25 mins/day
Candy Crush only Reach – 52% Time spent – 12 mins/day
11Mobile gaming on the Rise in India – Report by NASSCOM 15 viii. Navigation
According to a report by Alpha Beta12, Navigation apps have significantly improved consumer experience and resulted in significant economic benefits to the consumers by suggesting the most efficient route, providing live traffic updates and estimated travel time. The online mapping applications are still evolving in India with many companies focussing on different niches e.g. B2B or B2C and devices types e.g. mobile or GPS devices. The survey was limited to only mobile based B2C usage and therefore does not reflect the overall usage of different types of usage of maps. The most preferred applications in this category can be seen below:
[Figure 18 – Awareness and Regular Usage for Navigation applications]
1 Maps with Me Pro 2
1 HERE WeGo 3
2 Nearby Mapp 4
95 Google Maps 97
Data from the smartphone panel shows no overlap between different apps and suggests that, having found the relevant app, consumers tend to use that specific app.
12The Economic Impact of Geospatial Services – Report by Alpha Beta 16 ix. Cab Aggregators
The cab aggregators have transformed the Indian online mobility market - from ride hailing services for taxis, autorickshaws, etc. The cab aggregators are increasingly becoming the preferred mode for traveling within the cities. The most preferred applications for cab aggregators are given in Figure 19.
[Figure 19 – Awareness and Regular Usage for Cab Hailing Applications]
28 Uber 50
57 Ola 69
From Figure 20, it is evident that nearly 30% of consumers use both Ola and Uber.
[Figure 20 – Reach and Time Spent for Cab Aggregators: ODM Data]
Using both applica�ons Reach – 28% Time spent on Uber – 1 min/day Uber only Time spent on Ola – 1 min/day Reach – 39% Time spent – 1 min/day
Ola only Reach – 33% Time spent – 1 min/day 17 x. Online Ticket Aggregators (OTA)- Entertainment
Watching movie in theatre with friends and family is a great source of entertainment for Indian consumers. In addition to the movies, watching plays, live events and special shows have also started drawing large audiences. Online ticketing has greatly enhanced the access to these and other events. The online ticket aggregators have simplified the process of ticket booking. The most preferred applications in this category are given in Figure 21.
[Figure 21 – Awareness and Regular Usage for OTA – Entertainment Applications]
1 Others 4
Insider 6 8
36 BookMyShow 52
64 Paytm 65
As seen in Figure 22, 25% of the smartphone panel users preferred using both Paytm and Bookmyshow applications to book tickets.
[Figure 22 – Reach and Time Spent for OTAs – Entertainment: ODM Data]
Using both applications Reach – 25% Time spent on Paytm – 2 mins/day Time spent on BookMyShow – 1 min/day
Paytm only Reach – 70% Time spent – 2 mins/day BookMyShow only Reach – 5% Time spent – 1 min/day 18 xi. Online Ticket Aggregators (OTA)- Travel and Hotel Booking
The Indian passenger travel market is growing. Reports estimate that the online hospitality market will grow to USD 48 billion by 202013. Air travel is expected to be the biggest contributor to this growth. The most preferred applications for national travel booking are given in Figure 23.
[Figure 23 – Awareness and Regular Usage for OTAs National Travel
8 IRCTC Rail Connect 23
8 RedBus 21
The most preferred applications for travel and hotel booking are given in Figure 24.
[Figure 24 – Awareness and Regular Usage for OTAs – Hotel Booking]
2 M Indicator 2
1 OYO Rooms 4
Goibibo 2 13
MakeMyTrip 5 18
13Demystifying the Indian Online Traveller - Report by BCG and Google 19 xii. Food Delivery
This sector witnessed a total investment of USD 126 million in 2017 and entry of many new players14. Besides ordering food, these applications also allow consumers to do other related activities such as book tables at restaurants and check the menu prior to the visit. The most preferred applications for food ordering and delivery are given in Figure 25.
[Figure 25 – Awareness and Regular Usage for Food Ordering and Delivery Applications]
Cafe Coffee Day 13 21
FoodSome 15 24
Restaurants Near Me 19 28
31 Zomato 35 22 Foodpanda 48
As seen in Figure 26, over half the users prefer using Zomato to order food online. The data from the primary survey, on the other hand, indicates that the awareness and usage for Foodpanda is the highest. About 10% of the total users, who were a part of the smartphone panel, use both the apps to order food online.
[Figure 26 – Reach and Time Spent for Food Delivery and Ordering Applications: ODM Data]
Using both applica�ons Reach – 11% Time spent on Zomato – 1 min/day Time spent on Foodpanda – 1 min/day
Zomato only Reach – 52% Time spent – 1 min/day Foodpanda only Reach – 37% Time spent – 1 min/day
14Food Delivery Firms Will Fight for A Seat At The Table – Article in The Economic Times 20 xiii. E-mail
E-mail has become an integral part of everyday activity for Indian consumers. The Indian consumer has many options available, ranging from e-mail services provided by large players as well as native e-mail apps that are pre-loaded by mobile manufacturers. The Indian consumers also access e-mail services for both business and personal usage and have access to different types of e-mail services, whether in office or at home. In addition, they may also access e-mail services through desktops/laptops and/or over mobile devices. It is not necessary that the consumers may have same/similar services available on all devices and purpose (business or personal). The survey finding is limited to the e-mail services that the surveyed consumers used on their mobile devices. The most preferred applications are given in Figure 27.
[Figure 27 – Awareness and Regular Usage for E-mail Applications]
Rediffmail NG 1 5
MAIL 4 16
Yahoo Mail 4 27 25 E-mail 52 83 Gmail 88
As seen in Figure 28, despite the availability of pre-loaded native email apps, 70% of the users prefer using Gmail.
[Figure 28 – Reach and Time Spent for E-mail Applications: ODM Data]
Using both applications/day Reach – 25% Time spent on Gmail – 2 mins Time spent on E-mail – 1 min/day
Gmail only E-mail only Reach – 70% Reach – 5% Time spent – 2 mins/day Time spent – 1 min/day 21 xiv. News
The internet has democratised creation of and access to news. In addition to citizen journalists, many news organisations, newspapers and news aggregators have created apps that facilitate access to online news. News aggregators seem to be the preferred apps as they enable access to news from different sources. The most preferred news applications are given in Figure 29.
[Figure 29 – Awareness and Regular Usage for News Applications]
3 News Dog 10
The Times of India 8 19
Dailyhunt 13 20 20 Google Play Newstand 29 60 UC News 69
There are overlaps amongst apps thereby showing that consumers access news from different sources. As seen in Figure 30, 25% of all smartphone panel users use both UC news and Dailyhunt.
[Figure 30 – Reach and Time Spent for News Applications: ODM Data]
Using both applications Reach – 25% Time spent on Dailyhunt – 2 mins/day Time spent on UC News – 2 mins/day
UC News only Dailyhunt only Reach – 60% Reach – 15% Time spent – 2 mins/day Time spent – 3 mins/day 22 xiv. Mobile Browsers
Mobile browsers are an important mode of accessing the internet on the mobile phone. These browsers are optimized so as to display web content for small screens on portable device and some even offer user-friendly features such as voice search. The most preferred application are given in Figure 31.
[Figure 31 – Awareness and Regular Usage for Mobile Browsers]
2 Opera 12
UC Browser Mini 5 18
Opera Mini 8 29 46 UC Browser 66 72 Google Chrome 84
As seen in Figure 32, 50% of the users who were a part of smartphone panel preferred using both – Chrome and UC Browser – for surfing the internet.
[Figure 32 – Reach and Time Spent for Mobile Browsers: ODM Data]
Google Chrome only Reach – 38% Time spent – 12 mins/day
Using both applications Reach – 50% Time spent on Google Chrome – 9 mins/day Time spent on UC Browser – 17 mins/day
UC Browser only Reach – 12% Time spent – 19 mins/day Gmail
Gmail E-mail
03 Recommendations from CERC 23 a. Smartphone landscape: Then and now
In the mid-2000s mobile computing was just beginning to take off. The companies offering mobile devices and operating systems at the time were vertically-integrated (like Blackberry and Nokia). Mobile carriers kept tight control of device design and limited which apps users could access, so third party developers often struggled to get their apps in front of users. This was not only costly but also limited the market for the developers and consumers alike to a specific handset brand or telecom service provider.
The entry of Android OS has helped lower prices and made smartphones affordable to millions of consumers. Prices for smartphones have been dropping and new manufacturers have witnessed growth. Handset manufacturers like Xiaomi, Micromax, Lenovo, Huawei, ZTE, etc are introducing new phones, often under $100. Phones have debuted for as little as $13, such as the Indian Docoss X1. All this has increased choices for Indian consumers.
b. Recommendations
Based on the findings from the survey conducted by Nielsen and experience in the field of protecting and promoting consumer interest, CERC noted that consumers choose applications, for any given online activity, based- on its likeability, utility and popularity.
With the aim of further improving the consumer experience by creating a secure ecosystem for the digital consumer, CERC recommends the following for the consideration of policy makers, industry players and other consumer organizations. 24 1) Enhanced User Control
1) Many smartphone operating systems allow users to customise their phones - from home screen to widgets to apps on the home screen. Users can also change the default programs for e-mail, web browsing, and other tasks. Raising awareness about the processes for these customisable features would help the consumers exercise choice in an even more meaningful way.
2) Some Operating Systems like Android (Android 6.0 and above), allow users to decide which permissions to grant on a case-by-case basis — after the app is installed. It also gives the consumer more control over the app's functionality; for example, a user could choose to give a camera app access to the camera but not to the device location. Such controls should be made available across all smartphone devices and consumers should be educated about app permissions.
3) Many families share phones especially with children. Different app stores should enable turning on parental controls, which can help restrict, based on maturity level, what content can be downloaded or purchased from the App store.
4) It is important to educate consumers about their ability to manage notifications on their devices. Android allows users to mute, prioritize or choose which update/ notifications should be displayed. Android also allows the user to only update applications over wifi in order to avoid data charges. There is a need to raise more awareness about these choices.
Contact 25 2) Enhanced Protection
1) Keeping the device secure is an important step towards consumer protection. All operating systems and device manufacturers should encourage use of some form of password (alpha-numeric password, pattern, biometric etc.) for locking/unlocking of device.
2) Indian consumers’ app usage behaviour is also impacted by peer usage and the popularity of the app. Many times, such apps are not downloaded from authorised app stores and may contain malware which may lead to breach of phone security and user data. There is an urgent need to raise awareness about cyber security amongst Indian consumers. This will ensure that users have access to their choice of apps without compromising on privacy and security.
3) It is sometimes seen that on an app store or the internet, many fraudulent apps mimic the popular apps. The Appstores should put measures in place that can enable certification of apps especially government and banking apps.
4) The pre-installation of the apps preferred by consumers would benefit consumers, especially if the lite and offline version come pre-installed in the handsets. At the same time, providers need to ensure that the terms and conditions of usage and access to consumer data are fair and well documented. 26 3) Enhanced User Experience
1) From discussions with consumers, it emerged that phone memory and battery life are two main limitations that impacted download and usage of apps. Focus by phone manufacturers on these issues will help improve the user experience, especially for low end smartphones.
2) It is often seen especially for the government websites that the sites are not optimised for mobile devices and sometimes do not work on multiple browsers. In the interest of the Indian consumer, it is important that the websites are optimised using the latest open source technologies such as Progressive Web Applications (PWA). This will ensure a better user experience in terms of faster downloads, improved User Interface, ease of navigation etc.
3) While use of Indic keyboards has now been mandated, owing to literacy, keyboard size issues, language barriers etc. voice inputs and outputs can play a critical role in enhancement of usage. While some operating systems and manufacturers support Hindi, making voice input and output available in more Indic languages will be very helpful.
4) App usage is determined by access to the internet. Given the patchy availability of the internet, app developers should develop lite versions of the app as well as versions that can function in an offline mode. This will enable consumers to access information even if they are not connected to the internet and also save on data costs. 27 4) Annexure a. Research Methodology (i) Primary Research
The primary research was done in two parts. The first part constituted collation and analysis of data from Neilsen’s smartphone panel ‘On-Device Meters’ or ODMs. The data was used to identify top apps and identifying the gaps to understand the reasons behind consumer preference. In the second part of primary research was a quantitative survey. The survey was also carried out by Nielsen. This comparative method of study enabled identification of similarity and divergence of preference between only urban and mixed urban-rural consumers.
Smartphone Panel: The smartphone panel of Nielsen’s ‘On-Device Meters’ or ODMs consist of 8000 connected smartphone users spread across India. Representing the urban smartphone universe, the ODM panel was utilized to understand the application usage in terms of reach and time spent for various kinds of online activities – from streaming content to communication.
Primary Survey: The data from the ODM panel was further supported and accentuated by the data that was collected through a quantitative survey. Interviews were conducted with 3776 respondents from urban and rural centers. The objective of the survey was to understand the download behaviour, usage and the choice that the consumers express when they are deciding on an application to use for a given online activity. 28
(ii) How does ‘on-device meter’ work?
MOBILE PASSIVE DATA USAGE ANALYSIS REPORTING PANEL CAPTURE CLASSIFICATION
Opt-in Panelist Analytics Server Tagging Engine Outputs
Pan India Urban Usage data Each activity is Analyzed as per Syndicated and Smartphone panel transferred daily to tagged into business customized our secure server relevant buckets requirment reports
The smartphone panel comprises of connected Android smartphone users spread across Urban India. Nielsen installs their ‘on-device meter’ onto the smartphones of these opt-in panelists and uses them to analyze and understand the smartphone usage. The data collected from the on-de- vice meter is transferred daily to secure servers. The collected data is then processed by Nielsen which runs its engines to derive findings based on client needs.
(iii) Profile distribution of the smartphone panel
FEMALES 40+ yrs 15-17 yrs 10% 12% Tier 2 20% 35-40 yrs 27% 5% Metros GENDER TOWN CLASS AGE 41% 31-35 yrs 9% 18-24 yrs 7% 40% Tier 1 80% 25-30 yrs 24% 23% Mini Metros MALES 29
(iv) Survey methodology
The quantitative survey undertaken by Nielsen comprised of a total of 3776 computer aided face to face interviews of users from 20 states that included Punjab, Haryana, Delhi, Rajasthan, Uttar Pradesh, Uttarakhand, West Bengal, Assam, Bihar, Jharkhand, Chhattisgarh, Odisha, Madhya Pradesh, Gujarat, Maharashtra, Goa, Andhra Pradesh, Karnataka, Kerala and Tamil Nadu. On an average, the interviews lasted for 35 to 40 minutes. All of the respondents were regular users of smartphones, and were using the internet for various online activities.
(v) Profile of the respondents
NEW CONSUMER GENDER CLASSIFICATION SYSTEM HOUSEHOLD COMPOSITION
NCCS A1 6 41% 23% 34% NCCS A2 17 NCCS A3 24 NCCS B1 24 29% 71% NCCS B2 15 Joint family Nuclear family Nuclear family NCCS C1 12 with elders Without elders
EDUCATION OF THE AGE(MEAN: 31 YEARS) MARITAL STATUS RESPONDENT
Married Single 18 - 24… 31 SSC/HSC 36 25 - 30… 29 Graduate General 30 31 - 40… 21 College(Diploma) 15 PG General 5 18 4- 12 4-… 50… 11 31 Graduate… 4 25 5- 13 0-… 60… 829 60% 40% PG Professional 2 31 - 40… 21 41 - 50… 11 51 - 60… 8 MONTHLY INCOME OCCUPATION OF TYPE OF HOUSE (MEAN: RS. 26,400) THE RESPONDENT
39% 13% 48% Own house 94% 2501-5000 1 5001-10000 7 Rented house 5% 10001-15000 24 Employer house 1% 15001-25000 35 25001-50000 18 50001-75,000 4 75001 - 100000 2 Unemployed Service Business/Self Class Employee Employed Professional 30
(vi) Survey sample
ZONE STATE MEGA METRO OTHER METRO 10-50 LAKH 1 - 10 LAKHS < 1LAKH RURAL TOTAL
Punjab/Haryana 65 49 34 78 226 Delhi 110 110 North Rajasthan 68 55 33 75 231 Uttar Pradesh/ 64 51 31 70 216 Uttarakhand 0
West Bengal 99 60 50 32 76 317 Assam 51 53 78 182 East Bihar/Jharkhand/ 75 57 30 81 Chhattisgarh 243 Odisha 53 30 77 160 0
Madhya Pradesh 63 53 30 76 222 West Gujarat 77 60 50 31 75 293 113 76 66 53 33 91 Maharashtra/Goa 432 0 Andhra Pradesh/ Telangana 80 58 53 28 74 293 Karnataka 77 63 50 32 71 293 South Kerala 64 50 31 75 220 Tamil Nadu 104 74 55 30 75 338 ALL INDIA 426 310 780 730 458 1072 3776 31
(vii) Secondary research
S.no. Source 2017 Retrospec�ve – Report by App Annie 1 Link – h�ps://www.appannie.com/en/insights/market-data/app-annie-2017-retrospec�ve/ 2 “Sideloading” refers to downloading of an app through a website as opposed to a mobile app store. Highlights of Telecom Subscrip�on Data as on 28th February – TRAI 3 Link - h�ps://trai.gov.in/sites/default/files/PRTSDEng24042018.pdf Telecom Sta�s�cs India 2017 – Report by Economic Research Unit – Sta�s�cs, Department of 4 Telecommunications, Government of India Link - h�p://www.dot.gov.in/sites/default/files/Telecom%20Sta�s�cs%20India-2017.pdf?download=1 Evolving behaviour of Indian consumers on Mobile – Whitepaper by Consumer Voice 5 Link - h�p://www.consumer-voice.org/internet-safety/evolving-behavior-of-indian-consumers-on-mobile/ Rural Markets: Rising Online Video Consump�on at Heart of India’s Next Internet Growth Driver – Ar�cle in The Indian Express 6 Link - h�p://indianexpress.com/ar�cle/technology/tech-news-technology/rural-markets-rising-online-video- consump�on-at-heart-of-indias-next-internet-growth-driver-5074621/ Morgan Stanley explains why India’s e-commerce market is a hot investment opportunity – Ar�cle in Quartz 7 Link - h�ps://qz.com/1089559/morgan-stanley-explains-why-indias-e-commerce-market-is-a-hot-investment- opportunity/ Digital Payments in India to reach USD 1 trillion by 2023: Credit Suisse – Ar�cle in The Economic Times 8 Link - h�ps://economic�mes.india�mes.com/small-biz/startups/newsbuzz/digital-payments-in-india-to-reach-1- trillion-by-2023-credit-suisse/ar�cleshow/62935890.cms UPI transac�ons rise to 190 million in April – Ar�cle in The Economic Times 9 Link - h�ps://economic�mes.india�mes.com/small-biz/startups/newsbuzz/upi-transac�ons-rise-to-190-million- in-april/ar�cleshow/63994085.cms Google is bea�ng the Indian Government at its own game: UPI – Ar�cle in Quartz 10 Link - h�ps://qz.com/1216715/googles-tez-not-modis-bhim-is-winning-the-upi-payments-race/ Mobile Gaming on the Rise in India – Report by NASSCOM 11 Link - h�p://www.nasscom.in/knowledge-center/publica�ons/mobile-gaming-rise-india The Economic Impact of Geospa�al Services – Report by Alpha Beta 12 Link - h�ps://storage.googleapis.com/valueo�heweb/pdfs/GeoSpa�al%2520FA_Pages- compressed%2520%25282%2529.pdf Demys�fying the Indian Online Traveller – Report by BCG and Google 13 Link - h�ps://media-publica�ons.bcg.com/BCG-Google-Demys�fying-the-Indian-online-traveler-Jun-2017.pdf Food Delivery Firms Will Fight for a Seat at the Table – Ar�cle in The Economic Times 14 Link - h�ps://economic�mes.india�mes.com/small-biz/startups/newsbuzz/food-delivery-firms-will-fight-for-a- seat-at-the-table/ar�cleshow/62202419.cms
32 b. Labels
Figure Descrip�on
Figure 1 Snapshot of the most popular apps and consumer prefe rence
Figure 2 Most popular online ac�vi�es as observed from the survey (in %)
Figure 2.1 Most popular online ac�vi�es as observed from the ODM panel (Reach in %)
Figure 3 Awareness and Regular Usage for Messaging Applica�ons
Figure 4 Reach and Time Spent for Messaging Applica�ons: ODM Data
Figure 5 Awareness and Regular Usage for Video Streaming Applica�ons
Figure 6 Reach and Time Spent for Video Streaming Applica�ons: ODM Data
Figure 7 Awareness and Regular Usage for Music Streaming Applica�ons
Figure 8 Reach and Time Spent for Music Streaming Applica�ons: ODM Data
Figure 9 Awareness and Regular Usage for Online Retail Applica�ons
Figure 10 Reach and Time Spent for Online Retail Applica�ons: ODM Data
Figure 11 Awareness and Regular Usage for Social Media Applica�ons
Figure 12 Reach and Time Spent for Social Media Applica�ons: ODM Data
Figure 13 Awareness and Regular Usage for Digital Payment Applica�ons
Figure 14 Reach and Time Spent for Digital Payment Applica�ons: ODM Data
Figure 15 Awareness and Regular Usage for Mobile Banking Applica�ons
Figure 16 Awareness and Regular Usage for Gaming Applica�ons
Figure 17 Reach and Time Spent for Gaming Applica�ons: ODM Data
Figure 18 Awareness and Regular Usage for Naviga�on Applica�ons
Figure 19 Awareness and Regular Usage for Cab Aggregators
Figure 20 Reach and Time Spent for Cab Aggregators: ODM Data
Figure 21 Awareness and Regular Usage for OTA – Entertainment Applica�ons
Figure 22 Reach and Time Spent for OTAs – Entertainment: ODM Data
Figure 23 Awareness and Regular Usage for OTAs – Na�onal Travel
Figure 24 Awareness and Regular Usage for OTAs – Hotel Booking
Figure 25 Awareness and Regular Usage for Food Delivery Applica�ons
Figure 26 Reach and Time Spent for Food Delivery Applica�ons
Figure 27 Awareness and Regular Usage for E-mail Applica�ons
Figure 28 Reach and Time Spent for E-mail Applica�ons: ODM Data
Figure 29 Awareness and Regular Usage for News Applica�ons
Figure 30 Reach and Time Spent for News Applica�ons: ODM Data
Figure 31 Awareness and Regular Usage for Mobile Browsers
Figure 32 Reach and Time Spent for Mobile Browsers : ODM Data
33 c. Terms and abbreviations
NCCS New Consumer Classification System ABOUT 34
Nielsen
Nielsen Holdings plc is a global performance management company that provides a comprehensive understanding of what consumers Watch and Buy. Nielsen’s Watch segment provides media and advertising clients with Total Audience measurement services across all devices where content — video, audio and text — is consumed. The Buy segment offers consumer packaged goods manufacturers and retailers the industry’s only global view of retail performance measurement. By integrating information from its Watch and Buy segments and other data sources, Nielsen provides its clients with both world-class measurements as well as analytics that help improve performance. Nielsen, an S&P 500 company, has operations in over 100 countries that cover more than 90% of the world’s population. Nielsen conducted multiphase research for the report. http://www.nielsen.com/in/en.html
CERC
Consumer Education and Research Centre (CERC), set up in 1978, is a non-political, non-profit and non-government organization dedicated to the education and empowerment of consumers as well as promotion and protection of consumer interests through effective uses of education, research, the media and law. Its activities include, besides comparative testing of products, complaints handling, legal advice and litigation, consumer education and awareness programmes, library and information service, publication, advocacy, investor and environment protection. CERC analysed the research data and published the report. https://cercindia.org/
Chase India
Chase India is a research and public policy consulting firm. It provides consultancy services to organisations for mitigating business risk through insight based policy advocacy campaigns. Chase India conceptualized and commissioned the report. http://www.chase-india.com Notes Notes Disclaimers
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