Read about the 40 trends that make 2016 a year of inflection- Regulatory reforms, the best tech-infrastructure, improving physical infrastructure, rising video consumption, move towards a cashless economy and much more

1. 40 trends that
make 2016 a YEAR
OF INFLECTION
INFLECTION
ɪNˈFLƐKƩ(Ə)N/
A TIME OF SIGNIFICANT CHANGE, A TURNING POINT

2. 2010 was the year of inflection for
the urban metro desktop internet
users
91M total internet users
Increasing 3G adoption
Blackberry messenger dominant in the chat space
1 in 4 users accessing internet through Mobile

3. 2016 is about internet
reaching ‘Bharat’, not just
‘India’
400M total internet users and counting
50M users on Reliance Jio 4G within 3 months of launch
WhatsApp alone has 160Mactive users
4 in 5 users accessing internet through Mobile

4. Internet has finally
started impacting lives
of the masses

5. From 1GB to 30GB
RELIANCE JIO CUSTOMERS ARE CONSUMING 40-
50 TIMES HIGHER DATA THAN THE AVERAGE 3G
SMARTPHONE USER
JIO IS ADDING 10M USERS EVERY MONTH
2G 3G 4G
2008 2012 2016
JIO: The mother of all freemium plans

6. Entertainment is moving
from TV to Mobile
STAR INDIA’S VIDEO STREAMING PLATFORM
HOTSTAR HAD 10MN DOWNLOADS WITHIN 40
DAYS OF LAUNCH
Over 60% of Indian mobile
YouTube users consume
entertainment content

7. Vernacular is
bigger than
English
90% OF PRINT READERS IN
INDIA READ HINDI AND 25
OTHER LANGUAGES; THEY ARE
NOW COMING ONLINE
SHARECHAT
Marketers are shifting to vernacular too

8. India is now creating local
mobile-friendly content
INDIANS WHO NEVER TOOK TO BLOGGING ARE
NOW USING EMOJIS, GIFS, VINES, AND MEMES

9. The resistance to
technology in
small and
medium
businesses is
broken
BUSINESSES ARE USING ONLINE MARKETPLACES,
SOCIAL NETWORKS AND WHATSAPP TO DRIVE GROWTH

10. With startups
organizing markets
such as beauty
services, cabs,
delivery executives,
blue collar salaries
have increased
0
10000
20000
30000
40000
2010 2016
Cab Drivers (organized)
Beauticians
IT Professionals
THE AVERAGE SALARY OF A DRIVER IN MUMBAI IS HIGHER
THAN THAT OF IT PROFESSIONALS
GROWTH IN SA LA RIES
SIN CE 2 0 1 0

11. Blue collar workers
have also started
reaping benefits of
the digital
expansion in the
recruitment space
Babajobs Mera Labour Badiya Jobs
WorkIndia Aasaan Jobs MeraJob

12. Video is driving time
spent on the internet

13. YouTube still remains the
#1 video search platform
MORE THAN A THIRD OF YOUTUBE INDIA VIEWERS
SPEND OVER 1.5 HOURS PER DAY WATCHING
VIDEOS ON THE WEBSITE
75% visit YouTube as
their first stop for video
Offline viewing drives
millions of watch hours

14. Web series are getting popular
MILLENIAL-CENTRIC CONTENT IS GAINING
VIEWERSHIP; SOON WE WILL SEE WEB
SERIES FOR THE MASSES

15. Many e-commerce stores have
launched product videos
AND ARE ROLLING IN VIDEO REVIEWS AS WELL

16. Whatsapp video calling is
a big deal for India
SKYPE HAS ABOUT 300 MILLION MONTHLY ACTIVE USERS
GLOBALLY WHILE WHATSAPP HAS 160M IN INDIA ALONE
IN A COUNTRY LIKE INDIA WHERE MOST
USERS DO NOT HAVE EMAIL ADDRESSES,
WHATSAPP IS GOING TO BE THEIR FIRST
EVER VIDEO CALLING EXPERIENCE

17. Personal branding is
becoming visual too
VIDEO AND
INFOGRAPHIC RESUMES
ARE STARTING TO
SURFACE

18. Banking is getting
disrupted
INDIA’S LARGEST PUBLIC SECTOR BANK GROVELS TO
SELL ITS APP TO USERS

19. Moving towards Cashless
LAUNDYRMEN, COOKS, PLUMBERS AND OTHER LOCAL
SERVICE PROVIDERS ARE NOW ACCEPTING PAYTM
PAYMENTS
0
200
400
600
800
2012-13 2013-14 2014-15 2015-16
Mobile Wallet, part of PPI
(Volume in Mn)
0
200
400
600
800
2012-13 2013-14 2014-15 2015-16
Prepaid Payment Instruments
(Volume in Mn)

20. Fintech shows the real
addressable market in India
ACCESS TO FINANCE WILL BOOST REVENUES
ACROSS INDUSTRIES

21. United Payments Interface
(UPI) to change the payments
landscape
30 banks have already
rolled out UPI enabled
apps
To transfer money, pay
bills, buy railway and
movie tickets, among
others
24/7 available, including
public holidays

22. Demonetization of 1000
and 500 Rupee notes
DIGITAL PAYMENTS GET A BIG PUSH AS CASH ON
DELIVERY ORDERS FALL

23. Airtel launches India’s first
payments bank
•ACHI EVE FI N AN CI AL I N CLU SI ON
OBJ ECTI VES
•COM P ETI TI ON FOR U N I VERSAL BAN K S
•EN COU RAGE DI GI TAL PAYM EN TS
OVER 10,000
ACCOUNTS OPENED
WITHIN TWO DAYS
OF GOING LIVE

24. Regulatory Reforms

25. LEVIED ON MANUFACTURE, SALE AND
CONSUMPTION OF GOODS AND
SERVICES
UNIFORM TAX ON GOODS AND
SERVICES ACROSS THE COUNTRY
DISSOLVES DISTINCTION BETWEEN
GOODS AND SERVICES ON TAX
SUBSTITUTE FOR INDIRECT TAXES ON
GOODS AND SERVICES
GST at last looks set to
become reality

26. The Insolvency and
Bankruptcy Code
0
2
4
UK US South
Africa
Pakistan Brazil India
TIME TO RESOLVE
INSOLVENCY (YEARS)
THESE DELAY S AR E C AUSED DUE
TO TIM E TAKEN TO R ESOLVE
C ASES IN C OUR TS, AND
C ONFUSION DUE TO A LAC K OF
C LAR ITY AB OUT THE C UR R ENT
B ANKR UPTC Y FR AM EWOR K
The Code will
make it easier
to exit or
attempt revival
of a business,
thereby
improving the
NPAs for the
financial
services sector
The Code
creates time-
bound
processes for
insolvency
resolution of
companies and
individuals

27. Demonetization is
flushing out black
money
Big boost to
organized
businesses,
both B2B and
B2C
$217B worth
of cash
demonetized
Government
is acting
against black
money

28. Govt. is promoting
startups and setting up
funds
RS. 2,000 CR
INDIA
ASPIRATION
FUND
A RS. 10,000
CR FUND OF
FUNDS
STATE
GOVERNMENT
FUNDS
SECTOR
SPECIFIC
FUNDS
ATAL
INNOVATION
MISSION

29. Transforming agriculture
and agro based industries
GOVERNMENT IS
INVESTING IN
CREATING DIGITAL
PLATFORMS TO AID
FARMERS IN
INCREASING
AGRICULTURAL
PRODUCTIVITY

30. FDI in
electronics
manufacturing
at an all time
high
0
9.2%
4.7% 4.4%
9.7%
34.9%
13.3%
0%
5%
10%
15%
20%
25%
30%
35%
40%
0
5
10
15
20
25
FY10 FY11 FY12 FY13 FY14 FY15 FY16
Cumulative FDI inflow (USD B) % change

31. Infrastructure is
improving
WHILE PHYSICAL INFRASTRUCTURE IS CATCHING
UP, INDIA ALREADY HAS THE BEST TECH
INFRASTRUCTURE FOR STARTUPS

32. THE DEFICIT WAS AS HIGH AT 13% A DECADE AGO
For the first time ever, India does
not have a power deficit situation
0
2
4
6
8
10
12
Power Deficit (%)
Surplus energy is
anticipated at 3.3 per cent
and 6.9 per cent in the
southern and western
regions, respectively.

33. Smart city
mission has
begun
PROJECTS HAVE BEEN LAUNCHED IN AHMEDABAD,
PUNE AND BHUBANESHWAR
The Plan
• 100 smart cities in India
What are smart cities?
• These cities are technology driven and use
planned infrastructure to improve the
standard of living
Budget
• Over Rs 100M allocated for AMRUT, 'Smart
Cities' Mission

34. Connectivity is improving
BOOST TO ROAD, RAIL, SEA, AIR
CONNECTIVITY
Aviation is
taking off
India’s Aviation Market is
on a high growth path and
aims to be the third-
largest market by 2020
and the largest by 2030
Government plans 50 new
airports in the next three
years to boost regional
connectivity
In the first phase, 22
airports are already in
place and flights can start
as and when airlines plan
India is in the process of developing new sea routes and shipping
services connecting various countries
The government’s grant of fresh $2B for infrastructure will enable
corridors for sub-regional connectivity among Banlagadesh-Bhutan-
Nepal-India

35. Google brings free WiFi to
India’s railway stations

36. Amazon Web Services have
launched its data centers in
India
INTERNATIONAL PLAYERS ARE RECOGNIZING INDIA AS A
POTENTIALLY HIGH-GROWTH MARKET FOR ONLINE SERVICES

37. The open API
policy,
India stack
A PAPERLESS DELIVERY SYSTEM, THE LARGEST API
ON THE PLANET SET TO BRIDGE THE DIGITAL
DIVIDE IN A COUNTRY OF 1.25B
Aadhar
eKYC
UPI
eSign
Digilocker

38. Shift in consumer
behavior & lifestyle

39. Health
consciousness,
alternative
medicine, organic
foods are no longer
a fad Interest over time
GOOGLE SEARCH TREN D FOR
TOP I CS RELATED TO
“ALTERN ATI VE AN D N ATU RAL
M EDI CI N E”

40. Community workspaces
are proliferating

41. Urban commuters are showing
dependency on Ola, Uber
UBER POOL AND OLA SHARE ARE PROVIDING USERS WITH
A BRIDGE BETWEEN PUBLIC AND PRIVATE TRANSPORT
Ola claims to
get more than
1M booking
requests per
day
They have a
fleet of 300k+
cabs in 100+
cities
Uber says it
has 400k+
driver
partners

42. Flipkart sold about 15.5 million products during its five-day sale
ESSENTIAL EXPENDITURES SUCH AS MOBILE PHONES,
REFRIGERATORS HAVE NOW SHIFTED TO E-COMMERCE PLATFORMS
Consumer trust in online
shopping has strengthened
ESPECIALLY IN THE CONSUMER DURABLES SEGMENT

43. CON VOCATI ON
GOWN S AN D
HATS GI VE WAY
TO I N DI AN
ATTI RES I N
RAJ ASTHAN
U N I VERSI TI ES
Indians are going back to their roots
A GROWING NUMBER OF
ENGLISH LITERATURE BOOKS
DRAW THEIR INSPIRATION
FROM INDIAN MYTHOLOGY
AT THE SAME TIME, THEY ARE ALSO
ADOPTING WESTERN IDEAS

44. Social media is driving
consumption across
sectors

45. Social media
first is the
norm
ARTISTS ARE GAINING STARDOM USING A SOCIAL MEDIA FIRST
APPROACH; OLDER, ESTABLISHED CELEBRITIES ARE ALSO
TAKING TO SOCIAL MEDIA TO ENGAGE WITH MILLENNIALS
SN AP CHAT
STAR VARU N
THAK U R
N EHA DHU P I A’ S AU DI O
TALK SHOW LAU N CHED ON
SAAVN AP P

46. Online
brands
began to
blossom
2 out of Top 5
women’s brands
on Myntra are
built online
•1. Forever 21
•2. Vero Moda
•3. FabAlley
•4. Only
•5. Tokyo Talkies
ON MYNTRA, NEW BRANDS ARE BEATING DECADES
OLD WESTERN WEAR BRANDS

47. BOOMING ONLINE ORDERING AND HOME DELIVERY SERVICES
ARE HELPING TO DRIVE THE GROWTH OF THE FOOD INDUSTRY
Food tech is here to stay
DOMINOS STOCK PRICE TANKS AS ITS MONOPOLY IS NOW
BROKEN BY FOODTECH COMPANIES

48. ‘Beauty & Fashion’ is the fastest
growing category on YouTube India
VLOGGING IS THE
NEW WAY
FORWARD IN THE
BEAUTY AND
FASHION INDUSTRY

49. Tech-averse people such as
doctors are using digital
platforms
19%% OF TOTAL
DOCTORS I N I N DI A
ON N ETWORK
WI THI N 1 2 M ON THS
OF LAU N CH
Tier 1 cities 29%
Tier 2 cities 36%
Tier 3 & 4 cities 35%
DOCTORS FROM TIER 2 AND 3
CITIES WERE EARLY ADOPTORS
OF THE PRODUCT

50. Segments to watch out
for in 2017
Education Gaming Healthcare
Personal
Finance
ALTHOUGH THERE HAVE BEEN A LOT OF FALSE STARTS
IN THESE SECTORS, WE THINK THAT THIS TIME IT WILL
BE DIFFERENT

51. Thank You!
Please send your feedback to
sneha@indiaquotient.in
India Quotient, Mumbai
indiaquotient.in