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
Pre-installed/Downloaded
Social Media
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
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
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
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
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+
Instragram
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
Yahoo 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]
21
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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