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Blog Past: Opportunities in India’s Digital Space

November 13th, 2011 · 2 Comments

From a series I had written a year ago:

One clear opportunity in India is in the eCommerce space. As the Internet user base grows, the convenience of shopping from one’s home (or office) combined with attractive deals will grow the market. The key determinant for success for hard goods will be the efficiency of the value chain (logistics of speedy delivery). Winners are already starting to emerge in the space, but these are still early days.

The second opportunity will emerge in the mobile data space. With the combination of high speed networks (3G), smartphones with high-resolution displays in the $100-$200 space (watch for Android to make a big impact in the coming months) and nearly-flat-priced data plans (Rs 100 per month for almost unlimited usage), the mobile data space is going to see rapid growth in the coming years.

One obvious monetisation approach is advertising. But, the bigger opportunity will come from  consumer micropayments. What is needed is a revenue share model akin to the AppStores – where 70% of what end users pay goes to the application developer. In India, the figure for VAS is much less than half of this, on average. This is what needs to change to create an innovation cycle that can drive a new billion-dollar market.

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2 responses so far ↓

  • 1 Lalit Keshre // Nov 13, 2011 at 4:17 pm

    Both the opportunities are now clearly emerging out. Ecommerce is already hot and as of now mainly driven by the lower pricing. The second phase might be about long tail choice and social experience. In mobile space we have already crossed $200 range. Already see capacitive tablets/mobiles with decent performance in that category and interesting to see multiple operators pushing them, so probably cheaper data plans would follow soon.

  • 2 plodder // Nov 28, 2011 at 5:28 am

    How about a groupon in mobile space?

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