The Indian App Economy: Breaking Through the Challenges
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Transcript of The Indian App Economy: Breaking Through the Challenges
THE INDIAN APP ECONOMYBy Rajat Kathuria & Sugandha Srivastav
India’s App Economy: Currently an Urban Tale
Google: Our Mobile Planet India (2013)
But with Enormous Potential...
10%
81%
9%
Smartphone
Feature Phone
Multimedia Phone
Source: Nielsen Mobile Insights (2012)
• 150 million USD
Total Worth of Indian App Economy
• 100 million App Downloads per Month
• 300,000App Developers
Projected Revenue from Paid Apps in India (rupees crore) 89%
percent increase in the number of smart phones in urban India from 2012 to 2013. Total: 51 million smart phones
The Second Phase of a Telecom Revolution: Content
India’s teledensity is 73% will reach 100% by 2015.
Mobile Phones have penetrated nearly all income strata.
Next Step: Exploit this connectivity to address India’s high
service deficit.
ICT for Development e.g. MOOCs, m-Health, m-banking, e-governance etc.
Why apps in ICT for Development?
Apps are intuitive to use due to their single-purpose nature .
Often less-data intensive than internet sites.
Will gain prominence as smart phone penetration rises.
Have the ability to create a significant number of jobs.
The App Economy’s 3D Framework
Source: Made by the Authors
1st D: How to Bolster App Development
Weak user interface design
App developer teams in India must employ not only software engineers but also design professionals and psychologists so that an in-depth understanding of visual aesthetics and user behaviour is achieved.
Lack of locally relevant content.
Need local app distribution platforms that provide 70-30 revenue shares to developers.
Network coverage and capability must improve within the interiors of the country where the demand for highly localised apps is greater.
App developers will need to collaborate with OEMs to ensure that localised apps, which may require hardware support for Indic scripts, function well across a variety of devices.
Government can offer technical and monetary support to apps developers and distributors who are designing apps that serve a public good.
Telecom operators may have a role to play, provided they offer competitive revenue shares to app developers, in facilitating mobile payments since they cater to a large prepaid segment.
2nd D: How to Boost App Distribution
The problem: The most popular app distribution platform in India is Android’s GooglePlay. International app stores do not lend themselves to the easy discovery of highly India-specific/regional content.
Need business model innovation on the app distribution side.
Case Study: AppsDaily
AppsDaily sells its own apps through physical outlets that are located across 140 cities in India.
Circumvents unfavourable mobile-payment regulation by allowing payments in cash.
Makes the process of obtaining apps easier for those who are less digitally literate or aware by having physical attendant at stores.
62%21%
8%
5% 3% 1%
Android
Symbian
Windows Phone
Windows Mobile
RIM
iOS
Share of Purchases for India, Fieldwork: Sept-Oct. 2012 Source: Nielsen Informate Mobile Insights
3rd D: How to Unlock Latent Demand
Increase:
Digital Literacy
Awareness
Gender Parity
India China USA UK
8061 53 45
2039 47 55
Male Female
India China USA UK
13%
84% 83%68%51%
14% 12%26%35%
2% 6% 6%
Advanced Data User SMS/Voice UserVoice Only User
Source: Mobile Youth Around the World, Nielson (2010)Source: Mobile Youth Around the World, Nielson (2010)
Business Model Innovation in Monetisation
The Freemium model
Subscription model
In-App Purchases
Advertising
In-App Advertising
Improving the Overall App Ecosystem
Seed capital Innovation Network Infrastructure Penetration Consumer Devices Affordability Operating System Fragmentation Policy Framework M-Payment & Spectrum
Efficiency Socio-Economic Condition Usage
For more details on the above, please read the report!
Bottom Line
Mobiles for Entertainment Mobiles for DevelopmentIndia can do better & apps can help.
But All Stakeholders Will Need to Contribute as shown in 3D framework.
M4D per million unique mobile subscribers
Source: GSMA Intelligence Country Overview: Sri LankaData: MDI Products and Services tracker, MDI Analysis
The Way Forward & Conclusion Focus will be on urban market till saturated – low-hanging fruit.
Cater to the domestic market by focussing on localised content.
Aim for international competitiveness through innovation:
The ability to search for in-app content without downloading the app. Apps that allow for a new degree of device customisation. Apps that replace previously paid-for-services.
The app economy must be strengthened by increasing consumer awareness, enabling the growth of local app distribution platforms and incentivizing app developers to create locally relevant content so that apps can penetrate new regions. These initiatives will only be successful if network coverage and capability increase as well.
One Small Presentation is Not Enough
Contact us for more information!
Rajat Kathuria: [email protected] Sugandha Srivastav:
Thank you!