Escolar Documentos
Profissional Documentos
Cultura Documentos
May 2018
KPMG.com/in
Foreword by KPMG in India
The internet has gripped also allows companies to technology platforms available,
everyone’s imagination and collate customer data and the strength of data to deliver
it still continues to evolve its hence facilitates a personalised customers will be a game-
avatar in India that irrespective shopping experience to the changer. Adoption of robotics
of the age demographic, customers. Thus, social and artificial intelligence could
there is a constant desire commerce and assisted gain clout, especially in the
to keep pace with the latest e-commerce is also gaining retail value chain. In order to
internet trends. With digital ground. augment the impact of AI and
literacy on the rise, the last robotics, collaborations and
few years have witnessed Increasing number of strategic partnerships might
significant mobile and internet e-commerce platforms clearly emerge as the next big change
penetration. Further, there has indicate that digital payments in the business landscape.
been a rise in adoption of new are on the rise. While there are
age technologies, plethora yet certain challenges such as This report aims to highlight
of digital avenues opening awareness and security with significant internet-driven
up and increasing internet respect to digital payments developments that could
enabled channels – thus in India, with time; these are impact companies operating in
‘heterogeneity’ emerging as a only expected to be addressed the digital space in the coming
key characteristic in the Indian gradually, eventually providing year. We hope you find this
internet landscape. a boost to the economy. report a useful and insightful
read.
India’s multi-lingual There is no doubt that
characteristics have brought in technology has played a
a unique diversity to the ‘Indian huge role in the ‘business-
Internet Consumer’ who may to-consumer’ (B2C) and
or may not necessarily speak the ‘business-to-business’
the dominant languages. This (B2B) transformation. Some
means that organisations organisations have managed
today will need to focus to leverage and combine the
on content that is both power of technology and
relevant and valuable to the product/service, thus
various language speakers giving a new uplift to the
for enhanced consumer traditional consumers need.
outreach and attention. We therefore are witnessing
Direct selling to consumers new sub-segments such as
can help organisations gain health-tech, agri-tech and Sreedhar Prasad
complete control over their ed-tech emerging from the Partner and Head
brand presentation and reduce business landscape. Diving Consumer Markets & Internet
distribution costs. This model into the near future, apart from Business, Advisory - KPMG in India
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
Foreword by NASSCOM
Data-driven insights, digital is seen in Media, Gaming and exponential processing power,
tech and ubiquitous mobile Entertainment frequently has natural-language programming
computing is changing the now moved to other realms as and massive spike in data
Indian landscape like no other. well – Health-tech, Agri-tech, generation.
This report provides rich Ed-tech to name just a few.
insights on the top 10 trends As you turn the pages, you
that are yet unfolding in varying At the heart of this disruption will find some deep insights
degrees. is of course data. Volume ably backed by data (both
and velocity always existed. global and Indian) trends, et
According to a Forbes article, Variety (both structured and al., and I believe it would be
companies globally lose unstructured) is the new greatly beneficial in your digital
upto USD300 billion annually normal which has made it journey.
because of poor customer game-changing. Organisations
experience.1 Competitive too have been incredible in
advantage is fast becoming their ability to capture data and
competing on experience. extract value out of it with the
In India, 95 per cent of aid of emerging technologies.
households have a single According to KPMG in India’s
television, and smartphone CEO Outlook 2017, in the next
screen has become a key three years, 80 per cent of
source for streaming-on- Indian CEOs are gearing up to
demand.2 It is no wonder invest in cognitive technologies
then that by end of 2018, including Artificial Intelligence
smartphone penetration and Machine Learning.
would have risen to 530
million which is just a shade The idea of robots per se is not
below the half-way mark. Just new. For several decades, we
let it sink in – soon, half of have seen these applications
India will own smartphones particularly in manufacturing
and their expectation to and warehouse operations.
be served through this But what is new is that
medium would have gone up robotics is morphing into
disproportionately. The ‘mobile- digital labour and it has been
first’ consumption pattern that made possible due to AI,
K S Vishwanathan
Vice President
NASSCOM
1. Competing On Experience: How Retailers Can 2. TV & OTT In 2018: From Polarisation To
Stem The Amazon Effect, Forbes, 18 April 2018 Unification, MXM India, 29 December 2017
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
Foreword by YourStory
At YourStory, every story ecosystem is ready to talk in Things are changing at a
we publish, be it of an her/his own language. Beyond blistering pace. Next year, we
entrepreneur or an evolving entertainment, in e-commerce, could be discussing a whole
business landscape, also in financial services, in new set of technologies and
showcases a trend at some healthcare – businesses the changes are happening as
level. So, we were thrilled to that plan to expand on the we speak. Startups are making
be a part of the initiative that basis of a digital explosion this happen. More power to
tries to understand the trends need to connect with her/ them.
that are shaping India, as seen him today. She/he and her/
from the eyes of its new-age his family and friends are
entrepreneurs. As the buzz already generating terabytes of
around the trillion-dollar digital data that companies want to
economy builds up to a roar, analyse and extract value from.
India finds itself on the cusp They are already engaging
of tremendous transformation. with brands via social media;
On one hand, we are steeped commerce will follow. They are
in tradition, on the other also generating millions of data
hand we are surrounded by points on a daily basis. Which
disruption and change. Listen begs the question, who’s
carefully and you will hear the looking at protecting this data?
rumble of the rising economic And therefore, is cybersecurity
revolution. And why not? the next big opportunity? The
India is brimming with ideas, report will tell you more.
entrepreneurship, and the
thirst for change and reform. These insights would not have
been possible without the
At the centre of it all is the contributions of everyone who
digitally savvy, non-English- worked to make this report
speaking consumer, who will possible: right from those we
represent nearly three-quarters surveyed to the dedicated
of the country’s internet user efforts of everyone at Kalaari
base by 2021. The question Capital, NASSCOM and KPMG
therefore, is whether or in India.
not the rest of the digital
Shradha Sharma
Founder and CEO,
YourStory Media Pvt Ltd
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
Foreword by Kalaari
India over the last decade ecosystem. After a few rounds The continued success of the
has risen in significance and of discussions with YourStory, Indian ecosystem depends
is the third largest tech start- NASSCOM and KPMG in on many efforts coming
up ecosystem globally with India we conceptualised together. I am pleased that
close to a dozen unicorns #Indiatrends2018 : Trends four organisations from
being created. These start- shaping digital India - an different domain and expertise
ups have not only changed endeavor to explore trends that with unique perspectives
the lives of Indians but have are influencing India’s digital collaborated on an initiative like
played a pivotal role in laying economy and summarise #IndiaTrends and would like
the right foundations for India’s opportunities that lie ahead for to thank all the respondents
digital economy to flourish. entrepreneurs and corporations of our survey, industry leaders
As we grow to become to be future ready. As part of and everyone from YourStory,
the world’s third largest this initiative, we conducted NASSCOM and KPMG in India
economy by 2025, there will a survey across over 1200 for their support in making this
be multiple opportunities entrepreneurs to understand report comprehensive. We
and sectors where India can what they believe will hope you find it to be valuable!
leapfrog in innovation. We will fundamentally drive innovation.
undoubtedly see technology Taking this a step further, we
companies accelerate reached out to several key
this change with the next stakeholders in the ecosystem
generation of entrepreneurs to get opinions on how their
solving for uniquely Indian industries will play out going
problems and scaling them forward. The end outcome
globally. Today, India’s rapidly is a report that provides an
evolving digital landscape is in-depth analysis on how
spawning start-ups across digitization is changing India’s
sectors that are attracting commerce landscape and its
significant capital, resulting in role in creating efficiencies
innovative trends that we have across large sectors like
highlighted in this report. financial services, healthcare,
education and agriculture.
At Kalaari, we believe there Furthermore, it uncovers
is a need for stakeholders in nuances emerging from India’s
the ecosystem to develop first time smartphone users
a deeper understanding of and the impact digital will have
these transformations and as consumer growth becomes
collaborate to take a holistic more inclusive in the coming Vani Kola
view of India’s start-up years. Managing Director
Kalaari Capital
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
#IndiaTrends2018:
Trends shaping Digital India
May 2018
KPMG.com/in
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
Table of contents
pages
05 Emergence of ‘alternate commerce’ 15
06 Emerging sectors
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
01 | #IndiaTrends2018: Trends shaping Digital India
Introduction
From its inception in 1990s few years. About 59 per cent internet-driven technologies,
to its adoption in our day-to- of the country’s population are able to make products
day activities, the internet has is expected to have internet affordable for consumers,
drastically changed the way access and about 2 billion create their brands in the
we communicate with one devices are expected to be global arena, analyse large
another. It has, in a matter of connected on the network datasets to serve consumers
very few years, graduated from by 2021.2 This trend, largely better and make their offerings
just being a simple platform driven by the government’s available to a large consumer
to a necessity for every push towards digital initiatives base. From healthcare to retail,
successful business around and availability and affordability almost every sector is adopting
the world. New innovations of smartphones, is expected new emerging technologies
have given us ways to harness to continue in both rural and to digitise and transform their
the power of internet and urban areas in the coming businesses.
leverage it to transform years.
businesses around the world. Technology, backed by
The internet has transformed the internet, is on a path
India, with over 450 million the business landscape of to transform not just our
internet users, is the second- organisations by providing businesses, but also our lives.
largest online market behind them with opportunities Through this report, we have
China.1 Similar to the global across four dimensions — delved into the key internet
trend, the country is also affordability, brand, data and trends that are likely to shape
expected to witness a digital accessibility. Organisations, businesses in India in 2018.
transformation in the next with the help of certain
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
#IndiaTrends2018: Trends shaping Digital India | 02
#IndiaTrends2018:
Trends shaping Digital India
1 2 3
‘Mobile-first’ consumption for media, gaming Digital future lies in Rise of social and
entertainment generating significant avenues the Indian language content-based
for consumer outreach and engagement internet users commerce
101010010
7 6 5 4
8 9 10
Frontier-tech
Robotics pushing Digital payments solutions like AI, ML
boundaries going mainstream and blockchain likely
to gain precedence
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
01 03 | #IndiaTrends2018: Trends shaping Digital India
100
and Subscription Video on 2.5X more time watching content on
Demand (SVOD) based mobile than the web. Small cities with
revenue streams. The Indian population of 1-10L clocked highest
OTT market still relies heavily growth rate in watchtime.
on advertisement revenue.
The SVOD model is yet to Ajit Mohan
million gain traction due to reluctance CEO
of consumers to pay for the Hotstar
is the likely figure of
unique monthly users in content. With the entry of
the OTT market in India global players, the SVOD 1. Global Pay TV and OTT trends, digital TV
research, accessed on 9 February 2018
by 2020, propelled by model is catching up though. 2. Faster Internet speed spurring OTT growth in
players’ presence across Some leading players are also India, The Economic Times, 26 September 2017
the OTT video value adopting a hybrid Freemium 3. Carving a Regional Strategy: Indian OTT majors
and digital content creators firmly believe in
chain2 model, where some content is regional power, Business Today, 8 November
2017
free and some is paid. 4. Media for the Masses: The Promise Unfolds,
KPMG in India, March 2017
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated 5. Online gaming in India: Reaching a new pinnacle,
with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved KPMG in India, May 2017
#IndiaTrends2018: Trends shaping Digital India | 04
As most platforms are The online Indian gaming as mobile phone companies
providing similar genres of sector has also benefitted are evaluating this as a new
music, differentiation has significantly and is set to channel for customer outreach.
emerged as a key challenge grow to USD1 billion in 2021
Since these are services
for the industry. Players have from USD290 million in 20165.
where there is a higher
started leveraging digital Nearly 75 per cent of gamers
degree of involvement by the
technologies such as analytics, use affordable phones that
customers, brands are trying
machine learning and artificial are priced below USD300.
advertisements as well as
intelligence to customise This shows the acceptance of
engagement models through
services. affordable smartphones as the
these platforms. One of the
primary medium for playing
key reasons for the same being
online games in India.
that the primary device used
is the mobile, and there is
Mobile-first for faster
continual engagement with the
Indian consumers are adopting adoption
customer, far more than while
digital consumption in a large With the internet penetration using a computer.
way. What we’ve seen is that and smartphone story in India,
when consumers see great the adoption for media, gaming Target customer profiling
value in their experience, they and entertainment services has
adopt digital behaviors fairly increased significantly in the Media and gaming platforms
quickly. For instance, in just recent past with a large number offer a far sharper profiling of
over a year since the launch of of new users being added customers based on the choice
Amazon Prime Video, we have every month. One of the key of genre and the propensity to
already seen Prime members reasons for this is the ease of pay. These are key inputs for
stream video content from payments through the mobile tech product startups as well
across hundreds of towns and service provider and a relatively as mobile/laptop companies in
cities. As a mobile first country, higher trust in that medium. targeting the right customer.
more than 70 per cent of Prime
video content consumption A huge benefit with the mobile Challenges
happens over smartphones in first model is that there are
far more early adopters of Despite strong growth,
India. several challenges make India
these services since young
Akshay Sahi Indians too have access to a nascent market for OTTs.
Director - Prime and Delivery music, videos or games to Low data speed and unstable
Experience suit their preferences, rather connection, coupled with low
Amazon India than depending on the family’s broadband penetration, are still
preferences. prevalent in India. However,
the mass adoption of 4G
Mobile-first access for phones, growing affordability
customer outreach of data plans, and offline
The adoption of media and access to the otherwise
gaming through mobile bandwidth consuming video
devices is opening up a totally content is expected to propel
new channel for customer growth towards digital media.
acquisition, engagement and Awareness and exposure to
outreach. international content, has
raised the demand for high
The ‘One Digital identity for a quality content. Players in
customer’ view extends to the India also face monetisation
usage of media, entertainment challenges due to prevailing
and gaming services and the content piracy and still nascent
customer profile along with mobile payments infrastructure.
associated activities extends Moreover, the user group
to these services as well. is restricted to younger age
This leads to a new set of groups, who are usually
data points of the customer resistant to pay for content.
being generated, which can be Further, digital video business
curated for a better customer is faced with high input costs,
experience as well as outreach. coupled with low returns due to
5. Online gaming in India: Reaching a new pinnacle, Retail and consumer packaged still evolving business models.
KPMG in India, May 2017
goods (CPG) brands as well
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
05 | #IndiaTrends2018: Trends shaping Digital India
Way forward6
Regional content to
Going forward, growth in SVOD 2 propel growth: With 75
revenues, regional content and per cent Indians being
Gaming is going to explode
vertical integration is expected. able to speak at least one
across all consumer segments
regional language, players
from casual to hardcore gamers.
have started including
SVOD revenues likely Competitive Gaming happening
1 regional content in their
to see strong growth: in premise or over the network, if
portfolio for the next
With improving data coupled with real time is going to
phase of growth
and digital payments really unlock the potential of the
ecosystem, coupled with In-App Purchases in India across
demand for differentiated the consumer segments and
Vertical integration
international content, 3 gaming formats. The triangulation
to be a key strategy:
SVOD model is expected of real money gamification, familiar
Players are expected to
to gain pace in India game mechanics and multiplayer
focus on content and
distribution capability, and features within the arena of game
build expertise across the of skill will lead to real value
entire value chain creation. Domestic startups need
to fix their own jigsaw puzzle to
6. From VOOT to Viu, Sun NXT to Hoichoi, OTT
find the sweet spot.
platforms are offering a bounty of regional
content, First Post, 1 November 2017 Manish Agarwal
Conversion rate for USD,
USD1 = INR63.8
CEO
Nazara Technologies Limited
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
02 #IndiaTrends2018: Trends shaping Digital India | 06
1,3,7 2,4,5,6
Indian Languages – Defining India’s Internet, KPMG India’s internet users have more faith in content
in India and Google report, April 2017 that’s not in English, Quartz, 2 May 2017
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
07 | #IndiaTrends2018: Trends shaping Digital India
Ankush Sachdeva
8. Alphonso from Konkan reaches your doorstep as Co-founder & CEO
farmers take to social media for sale, DNA India, ShareChat
18 April 2016
9,10
Indian Languages – Defining India’s Internet, KPMG
in India and Google report, April 2017
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
#IndiaTrends2018: Trends shaping Digital India | 08
Rise of digital
advertisements in local
languages
Indian language
enablement of digital
payment interfaces
Advanced technology
11. 11Languages And Digital Media- Why are to bring more Indian
Facebook, Twitter and Instagram Using
Translate?, Mayflower Languages, 6 April 2017 language users online
12. 12 Indian Languages – Defining India’s Internet,
KPMG in India and Google report, April 2017
13. 13India ranked 109 out of 122 countries in mobile Monetisation of Indian
internet speed; below Pakistan, Nepal, Business
Today, 12 December 2017
language internet user
14. Indian Languages – Defining India’s Internet, behavior analytics
KPMG in India and Google report, April 2017
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
03 09 | #IndiaTrends2018: Trends shaping Digital India
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
#IndiaTrends2018: Trends shaping Digital India | 10
Food and
Baby beverages
Financial
products services
Beauty and
Consumer
personal
healthcare
care
370
•
been developed in India via women
the social media route. These • Experiential restaurants in a
allow small businesses to city
communicate with clients
• Health support products for
and consumers. They act as a
senior citizens
million platform to buyers and sellers
for interacting and selling used • New fashion brands/curated
products. fashion
Active social media users
in India by 20223 • Insurance policies
Business implications and • Maternity, baby care centres/
market opportunities baby care products
200
The increasing online • Automotive products.
presence of Indian Typically, social and content
businesses is expected to based commerce have a high
directly create opportunities impact on high engagement
in the domain of social purchase decisions. This
commerce. channel enables the customers
minutes to arrive at a decision faster as
Average time spent per The prospects of social
the community may provide
day by mobile internet commerce remaining a strong
multiple answers/experiences
users on online activities4 trend in the Indian retail
which could be related to the
segment are further enhanced
customer needs.
by the growing online presence
In addition, the emergence of a of Indian businesses. India Enterprises are increasingly
significant number of domestic has an estimated 51 million likely to leverage technology
start-ups, which have managed registered small businesses, of in the form of social media
to successfully raise funding which about 32 per cent have and data analytics tools in a
via the venture capitalist route, online presence.5 bid to find innovative means
reflect the growing prominence to establish content-based
of social commerce firms Referrals, trust factor on communities, which could
in India’s evolving retail personal experiences and subsequently be used for
landscape. ability to connect themselves identification of a target market
with others in the community for enterprises.
remain as the key reasons for
3. ‘Number of social network users in India from
2015 to 2022’, Statista, accessed on 4 May 2018 the growth of this mode of
4. ‘Indians spend 70per cent of mobile internet time commerce. Some examples
on social media, entertainment’, The Times of
India, 19 December 2017 where social commerce is
5. Google Aims To Get India’s 51 Million Small influencing purchase decisions
Businesses Online With Its New Digital Unlocked
Program’, Huffington Post, 4 January 2017 include:
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
11 | #IndiaTrends2018: Trends shaping Digital India
Challenges
Key obstacles for social
commerce in India emanate Brands that connect with
from building and retaining consumers going forward
consumer loyalty on a will follow two key principles:
virtual platform as well as a message that has values
consistently monetising user at the center of their value
engagement. proposition and a voice that
As social commerce gains delivers that message that
increasing prevalence in India’s is authentic. The former is
retail landscape, it presents connected to a young buying
new challenges for businesses population that cares about
and brands going forward. how their purchases reflect
who they are and the latter is
Consumer retention: The key
an acknowledgement that in a
issue for enterprises remains
social commerce environment,
consumer retention, i.e.
in which consumers can
inculcating a sense of brand
talk back, brands have to
loyalty amongst members of
be sufficiently humble in
a community-based virtual
recognition of that fact.
platform and preventing them
from switching over to other Shailesh Rao
similar online communities Senior Advisor,
Conversion rate: Achieving TPG
a higher conversion rate in
terms of sales generated by
converting online ‘clicks’ or
potential interest of consumers Way forward
into an actual revenue
Social commerce is expected
generating source is a major
to remain a strong trend
challenge for firms, hoping
in India. With the growing
to tap social commerce as a
importance of e-commerce,
mean to expand the revenue
presenting consumers with a
base
wide array of options to choose
Increasing inclusion: A large from, social commerce is
portion of India’s population expected to be a key defining
remains without access factor in the consumer decision
to social media platforms. making process by involving
Bringing the social buying multiple digital influencers, and
experience to those who do thereby creating a consolidated
not currently enjoy access to market for businesses
virtual platforms is an obstacle to improve the shopping
faced by enterprises, which experience for consumers.
prevents them from accessing
new markets.
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with
KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved
04 #IndiaTrends2018: Trends shaping Digital India | 12
1. Digital business ecosystems and platforms: 5 2. E-Business: Issues and Challenges in Indian
new rules for innovators, CIO.com, accessed on Perspective, Global Journal of Business
8 May 2018 Management and Information Technology,
8 March 2014
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
13 | #IndiaTrends2018: Trends shaping Digital India
Increased Growth in
private Cashless logistics and Inclusion
investments transactions warehouses of SMEs in
Internet in startups Convenient payment The Indian logistics e-business
economy Government’s
models coupled market is likely support
upsurge Investments with additional to touch USD215 With
in the discounts offered by billion by 2020 from consumers
Majorly backed e-commerce opting for With the
e-business players USD160 billion in supporting
by e-commerce, industry in India have assisted the 2017, increasing at convenience,
the country’s witnessed a small and initiatives such
increased use of a CAGR of 10.5 per as Digital India,
internet y-o-y growth of debit/credit cards, cent, widening the medium
economy is 41 per cent to enterprises the government
as by the end of reach of retailers to has allocated
likely to double reach USD11.2 2017, there were remote locations have ventured
to USD250 billion in the into multiple a budget of
approximately 840 (tier-II and tier-III USD1,500 million
billion by 2020 first half of million debit card cities).6 e-services
from USD125 2017.4 catering end for augmentation
users.5 of telecom
billion in 2017.3 users.
infrastructure for
digital inclusion.7
Various factors driving this growth
3. Potential of E-Commerce in India, ondmc.com, 5. India has 29.1M credit cards, 840M debit cards 7. Government allocates 10,000 crore to boost
18 January 2018 in February 2017, Medianama, 21 April 2017 telecom infrastructure, The Telegraph, 01
4. Private equity and venture capital investments 6. 6“India’s logistics sector to reach USD215 February 2018
jump 41per cent to record $11 billion in H1 2017, billion by 2020: Survey, The Economic Times, 29
The Times of India, 03 August 2017 January 2018
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
#IndiaTrends2018: Trends shaping Digital India | 14
Challenges incurred
Catering efficiently to an some challenge to the current
individual’s experiences in an Indian scenario.
integrated environment being
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
05 15 | #IndiaTrends2018: Trends shaping Digital India
How has the trend rural areas in a cost effective Way forward
impacted the Indian retail way, and also use this
With the increase in number
sector? medium for marketing their
of start-ups and established
products to the masses.
Rise in start-ups offering retail brands foraying into this
assisted commerce Moving closer to the space, ‘alternate commerce’
services: In the past few consumer behaviour: The is likely to have a promising
years, there has been an use of assisted commerce future ahead. FMCG, fashion,
increase in the number is driving access to mobile and electronics
of start-ups, which are consumer behavior data products would be the
partnering with retailers to and preferences using a next wave of categories to
help expand a brand’s reach combination of digital and choose assisted commerce
to remote areas in India. brick and mortar stores and as a channel to enhance
These startups have also is expected to assist the their reach and gain further
been successful in attracting brands in driving marketing customer information.
investors and raising funds to decisions, try innovative
The rural consumer who is
further expand their model in value propositions and
going to be at the forefront
more towns and villages. understanding the consumer
of India’s retail growth story
better.
Established brands in the future can be brought
investing in assisted One of the biggest to shop online through these
commerce trough exclusive challenges for assisted platforms while continuing to
partnerships: There commerce organisations is adopt internet.
have been some notable to get the right store for the
It is an avenue for local
partnerships in the Indian product mix. Organisations
merchants to be able to
retail industry that hints with over 30,000 store
expand their product portfolio
towards a promising future network need to profile the
to their customer and hence
for ‘alternate commerce’ stores well so that product
an additional source of
in the country. Brands are clusters are available only
income.
looking at leveraging the at those stores with a
power of connected retailers catchment area matching the
through these platforms to target audience of the brand.
take their products in the
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
06a 17 | #IndiaTrends2018: Trends shaping Digital India
Health-tech:
Leveraging technology
to enhance healthcare
Emerging sectors
Decision support
•
Standardised
•
and e-prescribing
workflows • Wearable devices
• Professional-to-professional
• Business process support and apps
telehealth
• Patient outcome registries • Homecare
• Teleconsultation
• Patient flow management • Patient portals and
• Shared Electronic health
records, EHRs
• Risk stratification/ record (EHR), real-time data
Predictive analytics • Online communities
• E-learning tools
• Vital signs monitoring
Healthcare
service provider Physician Patient
4. 7 key market segments of digital health in India, 5. Innovative Trends that will Transform Healthcare
Dr. Hempel Digital Health Network, 01 July 2017 Industry in 2018, Entrepreneur India, 2018
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
06b 19 | #IndiaTrends2018: Trends shaping Digital India
Agri-tech:
Enabling a new green
revolution
Emerging sectors
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
#IndiaTrends2018: Trends shaping Digital India | 20
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
21 | #IndiaTrends2018: Trends shaping Digital India
Drone-driven
crop health
assessment
Smart
machines and On-demand
equipment farm input
rentals delivery
Application-
based Weather
financial prediction
services
Online
agro Robots for
stores harvest
Crop
Soil health
protection
assessment
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
#IndiaTrends2018: Trends shaping Digital India | 22
Way forward
Challenges
Increasing population, rising
Factors such as lack of income levels, growing
awareness about new exports and increasing
technologies, cost of consumption could drive the
technology and low demand in the agriculture
computer literacy impede sector. In addition,
the growth of adoption of continuous government
technology by farmers in and local support as well as
rural areas. investments from foreign VCs
As Agri-tech makes inroads has set the Agri-tech sector
into rural India, entrepreneurs on a healthy growth path in
would encounter a set India. The need is for all the
of new challenges which stakeholders coming together
could hinder their reach and to build a sustainable
effectiveness. ecosystem for the growth of
the sector.
Lack of awareness: The
reach of technology is
very limited and unevenly
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
06c 23 | #IndiaTrends2018: Trends shaping Digital India
Ed-tech:
‘E-Learn India’ – Digitally
innovative learning for the masses
Emerging sectors
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
#IndiaTrends2018: Trends shaping Digital India | 24
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated
with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved
25 | #IndiaTrends2018: Trends shaping Digital India
Road ahead
With exciting disruptions teaching is still a culture and a key trend in the coming years
taking place in the education thus a large opportunity for the with markets like Middle East,
technology sector, there K-12 segment. Further, test South East Asia and select
is significant scope for preparation and certification countries in Europe and Africa
unprecedented growth. Young courses form a large pie for opening up for Ed Tech.
entrepreneurs and education the growth of Ed-tech space in
leaders are expected to create India.
products and solutions to
Growth of Indian ED-tech
solve the core issues in the
businesses in the international 7. Year-Ender 2017: 5 major challenges faced by the
Indian education system. Ed-tech sector in 2017, India Today, 19 December
markets is also expected to be 2017
Assistance beyond school
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
07 #IndiaTrends2018: Trends shaping Digital India | 26
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
27 | #IndiaTrends2018: Trends shaping Digital India
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
08 #IndiaTrends2018: Trends shaping Digital India | 28
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
09 #IndiaTrends2018: Trends shaping Digital India | 30
businesses, where the payment interface for 3. Indian consumers keen to adopt to digital
payment solutions, Business Line, 14 November
2017
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
31 | #IndiaTrends2018: Trends shaping Digital India
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
#IndiaTrends2018: Trends shaping Digital India | 32
to lack of awareness and With influx of wallets, UPI is 3. Customer acquisition for
financial illiteracy. As the likely to become the face of other business: Payment
next step in promoting digital payments in India as companies are graduating
digital payments, the it focusses on consolidation to becoming channels for
Directorate of Advertising and interoperability. customer acquisition as
and Visual Publicity Government initiatives well as behaviour analysis.
(DAVP) of the Ministry are giving due impetus to
4. Digital voucher business
of Information and promote e-payments within
for safe transactions:
Broadcasting (MIB) and the country. Two key areas
There is an increasing
Ministry of Electronics and where digital payments are
need by customers
Information Technology less explored and have high
to not use their credit
(MEITY)9 are working on opportunity are:
card or internet banking
plans to start promotion of
1. Corporate e-payments: while transacting with
digital payments.
Emerging technologies international websites/
3. Infrastructure: Apart such as blockchain are gaming websites etc.
from the multi-national likely to revolutionise the were the trust on the
brands in malls and the B2B and international platform is relatively
urban population, many payments markets. lower. On demand digital
retailers and consumers, Private players support vouchers is expected to
still prefer traditional international B2B be the next wave for such
payment methods due to payments, and have transactions.
the lack of infrastructure. started entering this
With rapid usage of
Many shops are yet to market, especially for
mobile and higher internet
have their bank accounts Micro, Small and Medium
penetration, digital payments
which are imperative for Enterprises (MSMEs).
would become a front runner
digital payments. The
2. Rural penetration: for all businesses. The
government is working
Initiatives such as market is gearing up with
towards building smart
Payments Bank and newer types of Point of Sale
cities and also promoting
players with rural market (PoS) systems and devices,
financial inclusion —
target are likely to drive which are contactless,
steps which would
deeper penetration of Aadhaar-based and QR code-
help businesses and
digital payments in rural based. Additionally, foreign
consumers shift from cash
and semi-urban areas. players are likely to explore
to e-payments.
this growing opportunity in
the Indian market.
UPI is the world’s most advanced payment system. Its concept of a virtual payment address makes
it easy to send money, as easy as sending an email, and it does so in real time. Which is why we
saw government launching BHIM, Google launching Google Tez, Flipkart launching PhonePe, with
other players like Paytm and more recently WhatsApp joining the bandwagon. Today, UPI has done
more transactions in 18 months than credit cards have done in 18 years. I expect by December of
2018, UPI alone will do one billion transactions.
Nandan Nilekani
Chairman
UIDAI @ Kalaari Summit’18
9. Govt likely to launch 2nd phase of promoting payment service (IMPS), National automated
digital payments, Live Mint, 07 November 2017 clearing house (NACH), Unified Payments Interface
*Note: Electronic transactions or non-cash (UPI), Unstructured Supplementary Service Data
transactions refers to Real time gross settlement (USSD), debit and credit cards at PoS, Prepaid
(RTGS), National electronic funds transfer (NEFT), payment instrument (PPI), mobile banking
Cheque truncation system (CTS), Immediate
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
10 33 | #IndiaTrends2018: Trends shaping Digital India
The beginning of a deep inclined. As per a recent retail (both online and offline)
tech era study in 2018, organisations are early adopters of AI and
would strive to improve their machine learning technologies,
Organisations are now
understanding of what AI is with several firms already
expanding their horizons to
best suited for, and how it automating operational
capture, manage and derive
can be deployed. Advances processes leading to cost
valuable insights using deep
in virtual assistants and deep reduction and faster turnaround
data led tech.
learning would foster adoption time.
As businesses worldwide of artificial intelligence1.
Similarly, block chain is also
continue efforts to expand
gaining traction, with banks
data capture and storing Adoption of deep tech in
in India experimenting with
the exponential amount India
the new technology. The
of information across the
AI-powered systems are technology is not just limited
organisational value chain
expected to be mainstream, to financial transactions, but
- research & development,
as major Indian industry also applicable in several
marketing and sales,
verticals are experimenting other fields and has great
production systems, sensors
with these deep potential for areas such as
and applications across
technologies. addressing real estate, new
the supply chain, etc., the
voting systems, revamped
information can be leveraged India is one of the fastest
public benefit and distribution
in ways hitherto largely growing economies and one of
systems building new levels of
unexplored. With rapid the fastest growing technology
trust and transparency.
sophistication in machine and markets in the world. This
deep learning algorithms, opportunity is driven in part The other significant trend
these large data pools can by the Indian government’s is the dematerialization or
be processed to generate ambitious digital transformation miniaturisation of these
meaningful insights. The projects such as ‘Digital India’, technologies thus allowing it
availability of large amount of apart from enabling increased to get embedded into mobile,
data to train these algorithms opportunities for private sector sensors, existing machinery
has been a clarion call for to transform as well. This is morphing into new avatars of
industry to pave the way for translating into increasing digital labour, an amalgamation
more intelligence and decision adoption of emerging of strong processing power,
making reliance on business technologies especially artificial artificial intelligence, natural
systems and applications. intelligence, machine learning language processing and
and blockchain across almost exponential data growth.
Organisations across various
all industries.
industries are adopting deep From software robots to
technologies to improve Indian enterprises across sophisticated cognitive
consumer experience (CX), industries including retail, systems, advances in these
generate revenue opportunities Banking, Financial services automation technologies are
and drive operational efficiency and Insurance (BFSI), IT-BPM, changing the game, reducing
through warehousing automotive, manufacturing, costs in some areas while
(automated retrieval systems), agriculture and healthcare improving speed, accuracy,
hub and spoke models have already accelerated the quality, and control.
(where to form clusters for adoption of these frontier
delivery) and more to ensure technologies and are starting
unit economics are positively to reap benefits. BFSI and
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
#IndiaTrends2018: Trends shaping Digital India | 34
Artificial intelligence (AI) with the latest breakthrough from deep learning (DL) has made
it possible for the very first time for software to write software. AI has the promise to
exponentially transform healthcare, transportation, agriculture, education and bridge
language barriers in India. In healthcare, AI will revolutionise transportation by reducing
accidents, improving the productivity of trucking and taxi services and will enable new
mobility services. Adoption of AI will bridge language barrier by applying this technology to
respond to spoken words, translate speech or text to another language.
Vishal Dhupar
Managing Director
Asia South NVIDIA
Market opportunities
As the Indian public and private sector focusses on the adoption of next generation
technologies, the demand for advanced AI-related technologies would also grow
enormously in the near future, creating an opportunity for start-ups and tech players to
provide innovative products and services.
Rise in start-ups to offer Global and Indian firms Indian IT firms offering
deep tech backing up AI-based various products and
start-ups: Many leading services based on
• A number of start-ups
international and Indian deep tech: Major Indian
have increased their focus
technology players, and organisations have launched
on technologies such as
venture capitalists firms are their AI-based platforms and
AI, ML and blockchain; AI
readily investing in India- are further investing into
focussed start-ups grew 75
based start-ups focussing strengthening their portfolio.
per cent in 20162
on artificial intelligence and These leading players have
• Indian government’s machine learning space. launched their standalone
initiatives such as ‘Make products to monetise global
in India’ and ‘Start-up India’ and local AI market.
have further supported
AI start-ups growth
ecosystem in the country.
2. Artificial Intelligence is now the hottest tech 3. Govt doubles Digital India allocation to ₹3,073
spot and startups in India are working on its crore; telecom sector disappointed, Business
cutting edge, Financial Express, 20 November Line, 1 February 2018
2017
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
35 | #IndiaTrends2018: Trends shaping Digital India
Just like we did for IT Services, Challenges such as the high Deep tech adoption in
India has an opportunity cost of implementation, India is picking up pace
to become the world’s cyber security concerns and we expect increased
leading provider of business and legal privacy are having adoption across all major
automation. AI was first implications on the deep industry verticals with
widely adopted by the large tech journey. retail, auto, manufacturing,
B2C companies, and has healthcare, IT-BPM and BFSI
Talent crunch is the other
now moved to B2B. The large organisations leading the
challenge as a lot of
opportunity for India to become pack in India.
this technology requires
a global leader is in Citizen multifunctional individuals In the next five years, rapid
AI. India can be a pioneer in who have a sectoral focus adoption and silent embedding
building massively scaled AI coupled with technology. This of deep tech in various
capabilities that improve the may, in the future, be another business applications and
lives of over a Billion people. major opportunity within the processes is likely, especially
education sector. in standardised rule based
Atul Batra process operations. Deep tech
CTO would add to the bottom line
Manthan by automating processes and
creating better, faster always
on service options for almost
all sectors. Some firms have
already deployed Chatbots,
80%
Indian CEOs plan to invest in
voice assistants and image
recognition/analysis etc.,
technologies and have started
to reap benefits. To provide
cognitive technologies, including
artificial intelligence and machine
better and personalised
learning, over the next three years consumer experiences while
— KPMG India CEO Outlook 2017 interacting with organisations,
adoption of new technologies
is likely to increase further.
Retail and BFSI:
Increase efficiency
in sales and Artificial
marketing function Intelligence Healthcare:
AI powered
robots will learn
Finance: to anticipate
Compliance diseases
and fraud Self learning
detection with AI Deep learning Auto:
implementation Improving
consistency
in decision
Use of bots and making
voice assistants Voice assistants
to improve
Chatbots
overall consumer
experience Machine learning
Performing
prescriptive Predictive analytics
analytics Robotics process automation
Big data
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated
with KPMG International Cooperative (“KPMG International”), a
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMGSwiss
network of independent
entity. member firms affiliated with KPMG International Cooperative (“KPMG International”), a
All rights reserved
Swiss entity. All rights reserved
37 | #IndiaTrends2018: Trends shaping Digital India
Acknowledgement
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
#IndiaTrends2018: Trends shaping Digital India | 38
About NASSCOM
NASSCOM, a not-for-profit Established in 1988, NASSCOM is focused on
industry association, is the NASSCOM’s relentless pursuit building the architecture
apex body for the 154 billion has been to constantly support integral to the development
dollar IT BPM industry in India, the IT BPM industry in India, of the IT BPM sector through
an industry that has made in the latter’s continued policy advocacy, and help
a phenomenal contribution journey towards seeking in setting up the strategic
to India’s GDP, exports, trust and respect from varied direction for the sector to
employment, infrastructure and stakeholders, even as it unleash its potential and
global visibility. reorients itself time and again dominate newer frontiers.
to remain innovative, without
ever losing its humane and
friendly touch.
About YourStory
YourStory is India’s no. 1 nearly 75,000 stories of Founder and CEO Shradha
media tech platform for entrepreneurs, innovators Sharma has won several
entrepreneurs, dedicated to and change-makers. This awards for her work in media,
championing and promoting rich repository of content entrepreneurship, women’s
India’s entrepreneurial is available in English and leadership and other allied
ecosystem. As the pioneer major Indian languages, as areas. She has featured in
of telling the stories of well as in German via YS Fortune’s 40 under 40 for three
entrepreneurs’ dreams, Germany. YourStory has also straight years and has been
struggles, failures and provided business networking a top LinkedIn influencer the
successes, it is the definitive opportunities to over 65,000 digital media space. Investors
voice of startup trends in India entrepreneurs through the in YourStory include Kalaari
and the most sought-after various conferences and Capital, Ratan Tata and UC
platform for visibility. meetups it holds across the Berkeley, Qualcomm Ventures,
country, such as TechSparks and T V Mohandas Pai.
Founded in 2008, yourstory.
and Mobile Sparks.
com has published
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
KPMG in India contacts: YourStory contacts:
Mritunjay Kapur Shradha Sharma
National Head Founder and CEO
Markets and Strategy T: +91 80 4657 3636
Head E: shradha@yourstory.com
Technology, Media and Telecom
T: +91 124 307 4797 Suma Ramachandran
E: mritunjay@kpmg.com Head of Content Strategy
T: +91 98807 46353
Sreedhar Prasad E: suma@yourstory.com
Partner and Head
Consumer Markets & Internet Business, Advisory Nileena G.S.
T: +91 80306 54055 Founder’s Office
E: sreedharprasad@kpmg.com T: +91 94005-52375
E: nileena@yourstory.com
Ankur Nigam
Partner
Deal Advisory
T: +91 124 334 5213
E: ankurnigam@kpmg.com
Follow us on:
kpmg.com/in/socialmedia
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accu-
rate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should
act on such information without appropriate professional advice after a thorough examination of the particular situation.
The views and opinions expressed herein are those of the persons quoted and do not necessarily represent the views and opinions of KPMG in India.
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved.
The KPMG name and logo are registered trademarks or trademarks of KPMG International.
Printed in India