India’s income and consumption structure are undergoing a major change. As of 2022, there would be approximately 117 million upper middle and higher income households in India, according to certain projections. This number will increase by 80 million homes in that particular income bracket by 2030, making it 195 million in total. And this figure will undoubtedly have a multiplicity of effects on how people use digital platforms.
Rohit Shankar, Partner, Bain & Co., demonstrated a presentation on the “India e-CONOMY Report” at the TechManch Summit 2023. He declared, “Online usage has skyrocketed, propelling India well ahead of the biggest digital economy in the world. Today, the average person spends 6.5 hours online every day, which is more than developed economies like China. Social media has roughly 470 million users, which is a huge increase over developed nations like the US. That leads to incredibly high-quality engagement, so.It’s not only about the caliber of users; it’s also about how much time they spend online and the variety of activities they engage in.From searching to conversing with people and consuming content to making purchases and transactions online,” he continued.
With 220 million online shoppers, 110 million game buyers, and 65 million online food orderers, digital adoption has also reached a tipping point.
The important thing about this, according to Shankar, is that India’s second-tier cities—rather than just the top-tier ones like Delhi, Mumbai, Hyderabad, or Calcutta—are being discussed. They are equally adept in using technology as their urban counterparts. They spend more time online, especially when using digital services like online schooling and food delivery. They have become smart, modern digital consumers.
“Large organizations are also addressing these trends. The success of organizations today depends on seven imperatives. Market share and mindshare are becoming more comparable. Building mindshare will therefore benefit a company in gaining a larger market share, according to Shankar.
“Convenience follows. Fundamentally, marketers nowadays have a very small window to be able to reach, influence, and ultimately monetise the interest of customers, which is why UI and UX are becoming more and more significant. Next, consumers are willing to pay extra for personalization. The trick is being able to accomplish this on a large scale.
Shankar further emphasized that the majority of brands now compete online. They are engaged in fair competition. Therefore, there is even more justification to communicate what your brand represents. Therefore, it’s crucial to convey your brand’s values across all forms of digital media.Other crucial imperatives that he advised were operating in the new model, developing new revenue streams, and breaking into new digital worlds.
The world is changing, of course, as has been well acknowledged for a very long time. However, if I look at the past three to four years, we’ve actually reached a digital tipping point. What matters is how we use this medium to make sure that our brands don’t only survive but prosper as well,” he said in his conclusion.