Posts filed under ‘Infographic’

Mobile Penetration, Mobile Data Speed and Consumption in India

In this blog post, we mentioned that India is the #2 market in terms of Internet users behind China. But did you know that India was the #2 telecommunications market in terms of subscribers since 2008?

The telecom revolution stated in India on July 31st 1995 with a mobile call between the then WB chief minister, Jyoti Basu, and Union communications minister, Sukh Ram.  Since then, mobile phones have permeated everywhere in India. There are 1,036 million telecom subscribers, 97% of these being mobile subscribers. The urban mobile teledensity is a mind boggling 147, 3x higher than rural at 49 (overall mobile teledensity of 79.2).

With such high penetration numbers, every telecom operator is now turning towards data to increase revenues. The growing smartphone penetration in India, driven by cheap handsets is expected to fuel this. In 2016, smart phone shipments are expected to overtake that of feature phones with analysts pointing out factors that can drive the average price of a smartphone further down from Rs.10,700/- in 2015.

While users in India are still more concerned about voice quality than data services (and the leading telecom operator has tried to take the high ground on this aspect with the open network campaign), among smart phone users elsewhere, data speed is considered to be the most important factor in determining both network performance and satisfaction with an operator.

 

mobile

 

[Here’s a quick look at the data in the infographic above (2015 data) :

  • 1,010.9 million wireless telecom subscribers
  • 311.7 million wireless internet subscribers
    • 60% of these connections are on GPRS/Edge networks
    • 36% on 3G technologies such as HSPA/WCDMA
    • & only 0.8% of connections are on 4g networks technologies such as EVDO/CDMA/LTE
  • The average mobile connection speed was 1,016 kbps with…
    • … the average 2G speed at 77 kbps
    • … the average 3G speed at 1,932 kbps and
    • … the average 4G speed at 9,415 kbps
  • The average mobile-connected end-user device generated 149 megabytes of mobile data traffic per month
    • Average non-smartphone generated 49 megabytes of mobile data traffic
    • Average smartphone generated 430 megabytes of mobile data traffic per month
      • 9x more mobile data traffic per month than a basic handset
      • Within this, the average 4G smartphone generated 1,256 MB of traffic per month in 2015, compared to 430 MB for non-4G smartphones.
    • Average tablet generated 1,671 megabytes of mobile data traffic per month
      • 34x more mobile data traffic per month than a basic handset
  • There are an estimated 239 million mobile connected smartphones, 23.9% of device connections, and they generated 69.1% of total mobile traffic
    • Incidentally, India has overtaken Japan to become the world’s third largest smartphone market
  • There are 3.8 million tablets, 0.4% of device connections generating 4.2% of total mobile traffic
  • In India, mobile video traffic is estimated to grow 20.8-fold from 2015 to 2020, a compound annual growth rate of 83%.
  • Currently, web and other data applications generate about 48% of mobile data traffic, Video generates 40% , streaming audio generates 10% and file-sharing the balace 2% of India’s mobile data traffic
  • Currently web browsing, emailing and social networking are the top three internet activities on smartphones ]

 

What these numbers tell you is that Indians are embracing the internet on the mobile, not PC. And this mobile Internet is currently work and social networking related. Going forward it will be increasingly video.

However, the quantum of consumption is still low. For example, the 430 MB consumed at an average speed of 2.643 kbps by an average smartphone on an average mobile connection is good enough to stream about half a movie in SD quality from Netflix. And, if you are going to use a social network like Facebook exclusively, it will last you about 4-5 hours (1 -2 MB per minute). These are of course averages. There is always the pareto principle, 33.9 Million mobile users (~11% of total mobile internet users) consume over 2 gigabytes of data per month. And it is from survey of these users, that you hear the hype about mobiles and apps.

The next few years are going to be exciting in this space, launch of multiple high spec smartphones at Rs.10,000 price points, roll out of 4G LTE (and imminent data price wars) and better last mile connectivity  will further fuel mobile data consumption.

{The Cisco, Ericsson, CMI and TRAI reports are sources for this article and infographic, and can be accessed at the links given.}

  • Ravindra Ramavath
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September 8, 2016 at 3:05 pm Leave a comment

E-commerce – penetration and value of retail sales, across 5 countries

In Q4 ’15, India surpassed the US to become the #2 market in terms of Internet users behind China. However, e-commerce sales in India are nowhere near the value they generate in the U.S. or in China. So here’s a look at internet penetration, digital buyers and e-commerce sales of the top 5 countries by total retail Sales.

We’ve been interested in this topic for a few years now ; in this post almost two years ago we tried to gauge the penetration of e-commerce in four BRIC countries by comparing the proportion of their population that was active online vs. the proportion of population that actually shopped online. In today’s post, we’ve gone one step further and looked at the value of sales originating from those that shop online, i.e. the proportion of total retail sales value that is contributed through the e-commerce channel. For this purpose, the countries that we’ve chosen are those that are the top 5 in terms of total value of retail sales, namely USA, China, Japan, Germany and India, in decreasing order of sales value.

ECom_Contrib

[Since there’s a lot of information in this infographic, here’s how to read it :

Each of these five countries is linked to two sets of concentric circles, one in the top half of the chart and one in the bottom half of the chart. The set of concentric circles on the top had population numbers and that at the bottom has sales figures. Now for the details.

Let’s consider India as an example. The outermost circle in the top set of concentric circles for India tells us that our country has 925 mn people aged 14 years or more. The circle inside it shows that of these 925 mn people, 221 million or 24% are internet users. The innermost circle shows that only 82 Mn – or 9% of the 925 mn people – are digital shoppers and make online purchases of goods and services other than travel and events.

The bottom circle linked to each country shows the total value of retail sales and the proportion that is conducted via e-commerce. For instance, total retail sales in India are estimated at 818 Bn USD, and that conducted over e-commerce is just 14 Bn USD, or 1.7% of the total.]

So in spite of all the hype around this channel and the huge spend on advertising by the e-commerce players, a mere 9 % of our population shops online, and these purchases account for only 1% of total retail sales. Why only 1% ? Either due to a lower frequency of shopping online vs. visiting a retail store and / or due to a lower value of goods being purchased online. The latter seems unlikely since a large proportion of online sales are for mobile phones and accessories, followed by apparel and footwear, so it must be the low frequency to blame. Two big obstacles for e-commerce to surmount are now clear – the low penetration of online shopping amongst internet users, and the low frequency of online shopping among those that do shop online.

On to our neighbour China. While 56% of their total population is online, over half of these make purchases online. No wonder that sales through the e-commerce channel are 15.9% of total retail sales in China, as the bottom circle shows.

Surprisingly, though the US has a far greater proportion of population that makes purchases online ( 65% of its total population buys through e-commerce), these account for only 7.1% of total retail sales. Wonder whether it’s the ugly frequency problem rearing its head again, or whether it’s due to low unit value of goods purchased.

  • Ravindra Ramavath

July 25, 2016 at 11:16 am Leave a comment

Infographic – India expenditure data , rural

We’d earlier shared a set of infographics on per capita expenditure on various categories in urban India (https://escape-velocity-blog.com/2015/08/19/infographic-india-expenditure-data-urban/ ), and the trends over time therein (https://escape-velocity-blog.com/2015/09/22/infographic-india-expenditure-trend-urban/ ). This post shares similar data for rural India.

India MPCE - Expenditure data - Rural

The first point to note is that the average MPCE (monthly per capita expenditure) is much lower for rural India vs. that for urban India (Rs. 1429.96 vs. Rs. 2629.6 respectively). Hence, while the absolute value of expenditure on various categories may be lower in rural India, as a percentage of the MPCE it’s much higher. For instance, though the average monthly spend on food is Rs. 622 per capita, it is 48.6% of the total per capita expenditure ; this is closer to the proportion spent by the poorer fractiles of the population in urban India. One area on which folk in rural India spend much less than their counterparts in urban areas is housing, others are education and transportation. In almost every other category, the proportional spends (spending on category as a % of average MPCE) of rural folk are actually higher than those from urban areas.

 

  • Ravindra Ramavath

 

June 6, 2016 at 11:55 am 1 comment

Infographic – India expenditure trend, urban

India Expenditure Trend Urban - trends

  • Urban India has seen an increase of 128% in MPCE(URP) based on current prices
    • Real MPCE (measured using a price deflator with 1987-88 as base) has increased 29% between ‘04 to ’11, a CAGR of 3.7%
  • Share of food in MPCE declined by about 4pp in urban India between ’04 -’12 , you can clearly see the light green band receding from the right end
    • A few more points that are not shown in the graph :
      • Within foods, except for Milk, fruits & Beverages, all other products categories tracked have fallen in contribution.
        • While Milk and fruits has increased by 1pp, beverages have increased from 15% to 18% within foods
      • Cereals have registered the largest decline – from 24% to 19%
    • Among the rest of expenditure, durable & minor durable type goods has seen the highest jump of 2.4pp followed by rent at 1.4pp and clothing & bedding at 1.3.
    • Also, notice the steady rise in medical and education expenses
    • Proportion of spends on entertainment have also risen, albeit off a small base

The method of computing MPCE is rather interesting ; next week we’ll share an infographic on that too.

  • Ravindra Ramavath

September 22, 2015 at 2:47 pm Leave a comment

Infographic – India expenditure data (urban)

This infographic kicks off a set of posts that will delve into various aspects of income and expenditure distribution in India. This one describes the proportion of expenditure spent on various categories.

India MPCE - expenditure data

The pie chart on top shows how the average monthly expenditure per capita gets divided over several categories. But, as we all know, averages can be misleading. Hence the line chart below that shows how the percentages vary for different fractiles of the population.

The pie-chart clearly shows that food is the single largest component of the average expenditure basket, at 38.5% of the total average monthly expense per capita. What is even more interesting to see is how the proportion of expenditure on food varies with income, this is explored in the line chart (with expenditure fractiles being the proxy for income). The poorest 5% have a per capita monthly expenditure of Rs. 700.5; for this segment, expenditure on food is over half their total monthly expenditure. The richest 5% , on the other hand, spend only 23% of their monthly expenditure on food.

A similar trend can be seen in a few other categories, one of them being fuel and power. While on an average, the spend on these is 7.6% of total expenditure, it comprises almost 13% of the monthly expenditure of the poorest. As a proportion of their total expenditure, they spend more for electricity or cooking fuel than the richest do.

Many other nuggets buried within this infographic, but I’ll leave it to you to discover those ; we’ll be back soon to explore another facet of income and expenditure distribution.

  • Ravindra Ramavath

August 19, 2015 at 11:13 am Leave a comment

India – Internet Statistics

India-Internet

Since we’ve received some questions after the last two posts, we felt that it was time to share some more data on this topic. As this info-graphic is quite detailed, we may write a post or two on some of the implications of the numbers in this one , but you’ll have to wait a week or two to read those.

  • Ravindra Ramavath

 

September 9, 2014 at 5:52 am 1 comment

Child Mortality

Child Mortality 1

Click to enlarge

 

Child Mortality 2

Click to enlarge

 

Child Mortality 3

Click to enlarge

 

While the info-graphics above need no explanation, for those who lack the time to enlarge the image and peruse them, am mentioning below some key take-aways :

  • 6.6 Mn children under the age of 5 died in 2012
  • The global under-5 mortality rate equals 48 deaths per 1000 births

o   In case you thought the scourge of pneumonia had been banished, think again ; it accounts for 17% of these deaths, and is the largest contributor, along with prematurity. Pneumonia is still the leading cause of deaths in 83 countries

o   Malaria is still a major killer in Sub-Saharan Africa, causing about 14 percent of under-five deaths in the region.

o   Deaths due to diarrhoea have been nearly halved in the past decade but it still accounts for a tenth of all under-five deaths. Deaths due to Diarrhoea are high in countries such as India, Afghanistan, Ethiopia, Somalia, Angola, Niger etc.

  • India, Pakistan, Bangladesh, China, Indonesia, Nigeria and China, 7 of the most populous countries, collectively accounted for half of the total number of under-five deaths globally

o   While China is mentioned among these, it’s under-5 mortality rate (at 14 deaths per 1000 births) is actually much less than that of the other nations , it features on this list die it’s large population base

o   Of these nations, the statistic is the worst for Nigeria, with an under-5 mortality rate of 124 deaths per 1000 births

In case to wish to see statistics on under-5 mortality rates or causes for a particular country, you can click on this link for causes and this link for rates.

  • Ravindra Ramavath

 

June 5, 2014 at 8:32 am Leave a comment

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