INDEX

Executive Summary

Report FindingsOverview

Popular online activities

Detailed findings from the survey and the smartphone panel

a.

b.

c.

i. Messaging

ii. Video Streaming

iii. Music Streaming

iv. Online Retail

v. Social Media

vi. Digital Payments

vii. Gaming

viii. Navigation

ix. Cab Aggregators

x. Online Ticket Aggregators–Entertainment

xi. Online Ticker Aggregators – Travel and Hotel Booking

xii. Food Delivery

xiii. E-mail

xiv. News

xv. Mobile Browsers

Recommendations from CERCSmartphone landscape: Then and now

Recommendations

a.

Research methodology

Labels for charts

Terms and abbreviations

a.

b.

c.

b.

Annexure

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.

Executive Summary

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 Annie2 Sideloading” refers to downloading of an app through a website as opposed to a mobile app store.

01

The key findings of the survey are:

01

02

03

04

05

06

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

(42%), messaging (48%) and cab aggregators (28%) and consumers often use multiple

applications for the same activity.

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

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

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.

69% consumers want enhanced memory on their phones.

02

[Figure 1 - Snapshot of most popular apps and consumer preference]

The Indian consumer is an informed user and exercises choice in selection of apps

Online Activity Preferred Application Pre-installed/Downloaded

Messaging

WhatsApp

Pre-installed/Downloaded

Social Media

Facebook

Pre-installed/Downloaded

Music Streaming

Saavn

Downloaded

Online Retail

Amazon

Downloaded

News

UC News

Downloaded

Mobile Browsers

Google Chrome

Pre-installed

Video Streaming

YouTube

Pre-installed

Gaming

Candy Crush

Downloaded

E-mail

Gmail

Pre-installed

Navigation

Google Maps

Pre-installed

03

02 Report Findings

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:

The report is based on primary survey, draws data from a smartphone panel and secondary sources.

The detailed methodology is cited in the Annexure.

If and how Indian consumer exercises choice in selection of apps?

What is the attitude of Indian consumers towards pre-installed apps?

What are the challenges faced by Indian consumers when using apps?

12017 Retrospective – Report by App Annie3Highlights of Telecom Subscription Data as on 28th February, 2018 - TRAI4Telecom Statistics India 2017 – Report by Department of Telecommunications5Evolving Behaviour of Indian Consumers on Mobile – Whitepaper by Consumer Voice

04

01

02

03

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)

Navigation

News

Online Retail

E-mail

Gaming

Music Streaming

Mobile Browsers

Social Media

Video Streaming

Messaging

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.

Figure 2 – Most popular online activities as observed from the survey (in %)

162322

2724

3431

3644

51

5562

6671

687275 80

9092

05

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.

Figure 2.1 – Most popular online activities as observed from the ODM* panel (Reach in %)

06

*ODM: On-device metre, for a complete understanding on Nielsen’s smart phone panel, please refer to Annexure (ii).

Mobile Browsers

Messaging

E-mail

Video Streaming

Social Media

Online Retail

Gaming

News

Navigation

Music Streaming

99

98

89

86

77

74

70

68

59

45

Skype

IMO

Hike

Facebook Messenger

WhatsApp

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.

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 3 – Awareness and Regular Usage for Messaging Applications]

[Figure 4 – Reach and Time Spent for Messaging Applications: ODM Data]

i. Messaging07

WhatsApp onlyReach – 51%

Time spent – 22 mins/day

FB Messenger onlyReach – 1%

Time spent – 6 mins/day

Using both applicationsReach – 48%

Time spent on WhatsApp –31 mins/day

Time spent on FB Messenger – 2 mins/day

Using both applicationsReach – 19%

Time spent on WhatsApp – 33 mins/dayTime spent on Hike – 8 mins/day

WhatsApp onlyReach – 80%

Time spent – 25 mins/day

Hike onlyReach – 1%

Time spent – 12 mins/day

214

516

421

4871

9699

Google Play Movies and TV

Voot

Joi TV

Hotsar

YouTube

[Figure 5 – Awareness and Regular Usage for Video Streaming Applications]

[Figure 6 – Reach and Time Spent for Video Streaming Applications: ODM Data]

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.

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.

ii. Video Streaming

6Rural markets – Rising online video consumption at heart of India’s next internet growth driver – Article in The Indian Express

08

YouTube onlyReach – 71%

Time spent – 14 mins/day

Using both applicationsReach – 27%

Time spent on YouTube – 22 mins/dayTime spent on Hotstar – 6 mins/day

Hotstar onlyReach – 2%

Time spent – 4 mins/day

Using both applicationsReach – 25%

Time spent on YouTube – 21 mins/dayTime spent on Jio TV – 4 mins/day

YouTube onlyReach – 74%

Time spent – 15 mins/day

Jio TV onlyReach – 1%

Time spent – 4 mins/day

29

19

1124

2349

9297

Wynk

Hungama

Saavn

Jio Music

Gaana

[Figure 7 – Awareness and Regular Usage for Music Streaming Applications]

[Figure 8 – Reach and Time Spent for Music Streaming Applications: ODM Data]

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.

915

1122

1829

3338

3648

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.

iii. Music Streaming 09

Saavn onlyReach – 84%

Time spent – 1 min/day

Using both applicationsReach – 5%

Time spent on Saavn – 1 min/dayTime spent on Gaana – 1 min/day

Gaana onlyReach – 11%

Time spent – 1 min/day

Using both applicationsReach – 6%

Time spent on Saavn – 1 min/dayTime spent on Jio Music – 1 min/day

Saavn onlyReach – 78%

Time spent – 1 min/day

Jio Music onlyReach – 16%

Time spent – 1 min/day

Paytm Mall

Myntra

Snapdeal

Flipkart

Amazon

[Figure 9 – Awareness and Regular Usage for Online Retail Applications]

[Figure 10 – Reach and Time Spent for Online Retail Applications: ODM Data]

821

729

1032

5072

5876

iv. Online RetailThe 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.

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.

7Morgan Stanley Explains Why India’s e-Commerce Market is a Hot Investment Opportunity – Article in Quartz

10

Flipkart onlyReach – 17%

Time spent – 1 min/day

Using both applicationsReach – 43%

Time spent on Amazon – 2 mins/dayTime spent on Flipkart – 2 mins/day

Amazon onlyReach – 40%

Time spent – 1 min/day

v. Social MediaFor 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.

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.

[Figure 11 – Awareness and Regular Usage for Social Media Applications]

11

Facebook Lite

Google+

Twitter

Instragram

Facebook

Facebook onlyReach – 85%

Time spent – 17 mins/day

Using both applicationsReach – 13%

Time spent on Facebook – 32 mins/dayTime spent on Twitter – 3 mins/day

Twitter onlyReach – 2%

Time spent – 8 mins/day

Facebook onlyReach – 57%

Time spent – 15 mins/day

Using both applicationsReach – 36%

Time spent on Facebook – 23 min/dayTime spent on Instagram – 8 mins/day

Instagram onlyReach – 7%

Time spent – 14 mins/day

619

620

523

1538

9698

vi. Digital PaymentsPost 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.

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.

8Digital payments in India to reach USD 1 trillion by 2023: Credit Suisse – Article in The Economic Times

[Figure 14 – Reach and Time Spent for Digital Payment Applications: ODM Data]

12

BHIM

My Airtel

My Jio

Freecharge

Paytm

Paytm onlyReach – 53%

Time spent – 2 mins/day

Using both applicationsReach – 30%

Time spent on Paytm – 2 mins/dayTime spent on Mobikwik – 1 min/day

Mobikwik onlyReach – 17%

Time spent – 7 mins/day

915

418

197

822

9082

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.

9UPI transactions rise to 190 million in April – Article in The Economic Times10Google is beating the Indian government at its own game: UPI – Article in Quartz

13

Digibank by DBS

Axis Mobile

ICICI Bank Mobile

HDFC Bank Mobile Banking

State Bank Anywhere

918

822

1625

1727

4162

vii. GamingMobile 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.

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.

11Mobile gaming on the Rise in India – Report by NASSCOM

[Figure 16 – Awareness and Regular Usage for Gaming Applications]

[Figure 17 – Reach and Time Spent for Gaming Applications: ODM Data]

14

Clash of Clans

Subway Surfers

8 Ball Pool

Ludo Kind

Candy Crush Saga

Candy Crush onlyReach – 52%

Time spent – 12 mins/day

Using both applicationsReach – 4%

Time spent on Candy Crush – 10 mins/dayTime spent on Clash of Clans – 23 mins/day

Clash of Clans onlyReach – 44%

Time spent – 25 mins/day

1420

1524

1726

2434

4352

viii. NavigationAccording 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:

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

[Figure 18 – Awareness and Regular Usage for Navigation applications]

15

Maps with Me Pro

HERE WeGo

Nearby Mapp

Google Maps

12

13

24

95

97

ix. Cab AggregatorsThe 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.

From Figure 20, it is evident that nearly 30% of consumers use both Ola and Uber.

[Figure 19 – Awareness and Regular Usage for Cab Hailing Applications]

[Figure 20 – Reach and Time Spent for Cab Aggregators: ODM Data]

16

Uber

Ola

Uber onlyReach – 39%

Time spent – 1 min/day

Using both applica�onsReach – 28%

Time spent on Uber – 1 min/dayTime spent on Ola – 1 min/day

Ola onlyReach – 33%

Time spent – 1 min/day

28

50

69

57

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]

17

Paytm onlyReach – 70%

Time spent – 2 mins/day

Using both applicationsReach – 25%

Time spent on Paytm – 2 mins/dayTime spent on BookMyShow – 1 min/day

BookMyShow onlyReach – 5%

Time spent – 1 min/day

x. Online Ticket Aggregators (OTA)- EntertainmentWatching 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]

Others

Insider

BookMyShow

Paytm

41

68

3652

6465

13Demystifying the Indian Online Traveller - Report by BCG and Google

18

xi. Online Ticket Aggregators (OTA)- Travel and Hotel BookingThe 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.

The most preferred applications for travel and hotel booking are given in Figure 24.

[Figure 23 – Awareness and Regular Usage for OTAs National Travel

[Figure 24 – Awareness and Regular Usage for OTAs – Hotel Booking]

M Indicator

OYO Rooms

Goibibo

MakeMyTrip

IRCTC Rail Connect

RedBus

8

8

23

21

22

14

213

185

xii. Food DeliveryThis 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.

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.

14Food Delivery Firms Will Fight for A Seat At The Table – Article in The Economic Times

[Figure 25 – Awareness and Regular Usage for Food Ordering and Delivery Applications]

1321

1524

[Figure 26 – Reach and Time Spent for Food Delivery and Ordering Applications: ODM Data]

1928

3531

2248

19

Cafe Coffee Day

FoodSome

Restaurants Near Me

Zomato

Foodpanda

Zomato onlyReach – 52%

Time spent – 1 min/day

Using both applica�onsReach – 11%

Time spent on Zomato – 1 min/dayTime spent on Foodpanda – 1 min/day

Foodpanda onlyReach – 37%

Time spent – 1 min/day

xiii. E-mailE-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.

As seen in Figure 28, despite the availability of pre-loaded native email apps, 70% of the users prefer

using Gmail.

[Figure 27 – Awareness and Regular Usage for E-mail Applications]

[Figure 28 – Reach and Time Spent for E-mail Applications: ODM Data]

20

Rediffmail NG

MAIL

Yahoo Mail

E-mail

Gmail

Gmail onlyReach – 70%

Time spent – 2 mins/day

Using both applicationsReach – 25%

Time spent on Gmail – 2 mins

/day

Time spent on E-mail – 1 min/day

E-mail onlyReach – 5%

Time spent – 1 min/day

15

416

427

2552

8388

xiv. NewsThe 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.

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 29 – Awareness and Regular Usage for News Applications]

[Figure 30 – Reach and Time Spent for News Applications: ODM Data]

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News Dog

The Times of India

Dailyhunt

Google Play Newstand

UC News

UC News onlyReach – 60%

Time spent – 2 mins/day

Using both applicationsReach – 25%

Time spent on Dailyhunt – 2 mins/dayTime spent on UC News – 2 mins/day

Dailyhunt onlyReach – 15%

Time spent – 3 mins/day

310

819

1320

2029

6069

xiv. Mobile Browsers

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.

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]

[Figure 32 – Reach and Time Spent for Mobile Browsers: ODM Data]

22

Opera

UC Browser Mini

Opera Mini

UC Browser

Google Chrome

Google Chrome onlyReach – 38%

Time spent – 12 mins/day

Using both applicationsReach – 50%

Time spent on Google Chrome –9 mins/day

Time spent on UC Browser –17 mins/day

UC Browser onlyReach – 12%

Time spent – 19 mins/day

5

122

18

8

46

29

66

7284

Gmail

E-mailGmail

03 Recommendationsfrom CERC

a. Smartphone landscape: Then and nowIn 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.

23

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.

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.

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.

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.

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.

1) Enhanced User Control1)

2)

3)

4)

24

Contact

2) Enhanced ProtectionKeeping 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.

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.

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.

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.

1)

2)

3)

4)

25

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.

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.

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.

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.

1)

2)

3)

4)

26

3) Enhanced User Experience

27

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.

4) Annexure

(ii) How does ‘on-device meter’ work?

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

28

Pan India Urban

Smartphone panel

Usage data

transferred daily to

our secure server

Each activity is

tagged into

relevant buckets

Analyzed as per

business

requirment

Syndicated and

customized

reports

Opt-in Panelist Analytics Server Tagging Engine Outputs

MOBILE

PANELPASSIVE DATA

CAPTURE

USAGE

CLASSIFICATION

ANALYSIS REPORTING

FEMALES

MALES

20%

80%

GENDER

15-17 yrs

18-24 yrs

25-30 yrs

31-35 yrs

35-40 yrs

40+ yrs

12%

40%

24%

9%

5%10%

AGE

Metros

Mini Metros

Tier 2

Tier 1

41%

27%

23%

7%

TOWN CLASS

29

(iv) Survey methodology

(v) Profile of the respondents

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.

HOUSEHOLD COMPOSITION

23% 34%41%

MARITAL STATUS

Nuclear family with elders

Nuclear family Without elders

Joint family

NEW CONSUMER CLASSIFICATION SYSTEM

29% 71%

811

212931

51 - 60…41 - 50…31 - 40…25 - 30…18 - 24…

60% 40%

Married Single

TYPE OF HOUSE MONTHLY INCOME(MEAN: RS. 26,400)

Own house 94%

Rented house 5%

Employer house 1%

EDUCATION OF THE RESPONDENT

OCCUPATION OF THE RESPONDENT

Service Class Employee

Business/Self Employed

Professional

Unemployed

39% 13% 48%

12

15

24

24

17

6

NCCS C1

NCCS B2

NCCS B1

NCCS A3

NCCS A2

NCCS A1

3630

1554

2

SSC/HSCGraduate GeneralCollege(Diploma)

PG GeneralGraduate…

PG Professional811

212931

51 - 60…41 - 50…31 - 40…25 - 30…18 - 24…

17

2435

184

2

2501-50005001-10000

10001-1500015001-2500025001-50000

50001-75,00075001 - 100000

GENDER

AGE(MEAN: 31 YEARS)

(vi) Survey sample

30

ZONE STATE MEGA METRO OTHER METRO 10-50 LAKH 1 - 10 LAKHS < 1LAKH RURAL TOTAL

North

Punjab/Haryana 65 49 34 78 226Delhi 110 110

RajasthanUttar Pradesh/

Uttarakhand

68 55 33 75 23164 51 31 70 216

0

East

West Bengal 99 60 50 32 76 317Assam 51 53 78 182

Bihar/Jharkhand/Chhattisgarh 75 57 30 81 243Odisha 53 30 77 160

0

WestMadhya Pradesh 63 53 30 76 222

Gujarat 77 60 50 31 75 293

Maharashtra/Goa 113 76 66 53 33 91 432

0

South

Andhra Pradesh/ Telangana 80 58 53 28 74 293Karnataka 77 63 50 32 71 293

Kerala 64 50 31 75 220Tamil Nadu 104 74 55 30 75 338

ALL INDIA 426 310 780 730 458 1072 3776

(vii) Secondary research

31

S.no. Source

1 2017 Retrospec�ve – Report by App Annie 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.

3 Highlights of Telecom Subscrip�on Data as on 28th February – TRAI Link - h�ps://trai.gov.in/sites/default/files/PRTSDEng24042018.pdf

4 Telecom Sta�s�cs India 2017 – Report by Economic Research Unit – Sta�s�cs, Department of Telecommunications, Government of India Link - h�p://www.dot.gov.in/sites/default/files/Telecom%20Sta�s�cs%20India-2017.pdf?download=1

5 Evolving behaviour of Indian consumers on Mobile – Whitepaper by Consumer Voice Link - h�p://www.consumer-voice.org/internet-safety/evolving-behavior-of-indian-consumers-on-mobile/

6

Rural Markets: Rising Online Video Consump�on at Heart of India’s Next Internet Growth Driver – Ar�cle in The Indian Express 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/

7 Morgan Stanley explains why India’s e-commerce market is a hot investment opportunity – Ar�cle in Quartz Link - h�ps://qz.com/1089559/morgan-stanley-explains-why-indias-e-commerce-market-is-a-hot-investment-opportunity/

8 Digital Payments in India to reach USD 1 trillion by 2023: Credit Suisse – Ar�cle in The Economic Times 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

9 UPI transac�ons rise to 190 million in April – Ar�cle in The Economic Times 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

10 Google is bea�ng the Indian Government at its own game: UPI – Ar�cle in Quartz Link - h�ps://qz.com/1216715/googles-tez-not-modis-bhim-is-winning-the-upi-payments-race/

11 Mobile Gaming on the Rise in India – Report by NASSCOM Link - h�p://www.nasscom.in/knowledge-center/publica�ons/mobile-gaming-rise-india

12 The Economic Impact of Geospa�al Services – Report by Alpha Beta Link - h�ps://storage.googleapis.com/valueo�heweb/pdfs/GeoSpa�al%2520FA_Pages-compressed%2520%25282%2529.pdf

13 Demys�fying the Indian Online Traveller – Report by BCG and Google Link - h�ps://media-publica�ons.bcg.com/BCG-Google-Demys�fying-the-Indian-online-traveler-Jun-2017.pdf

14 Food Delivery Firms Will Fight for a Seat at the Table – Ar�cle in The Economic Times 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 preference

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

Nielsen

http://www.nielsen.com/in/en.html

https://cercindia.org/

http://www.chase-india.com

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.

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.

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.

34

Notes

Notes

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