RETHINK - COVID-19: A BOON FOR THE DIGITAL ECONOMY? - ISB
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Management
ReThink
December 2020 | Volume01 Issue01
COVID-19: A Boon
for the Digital
Economy?
1 Management ReThink December 2020
AMAN KUMAR,
Co-Founder, KalaGato -an
automated consumer and
market insights platform
focused on the internet
COVID-19: A Boon for the
Digital Economy?
COVID-19 gave a phenomenal fillip to our digital lives over
the last couple of months. According to an IAMAI-Nielsen
Report on Digital India, as of November 2019, the total number
of internet users in India stood at 504 million, out of which
433 million internet users were above the age of 12. Borne out
of necessity - it would not be an exaggeration to say that this
pandemic achieved a level of digital adoption in a matter of
months that would otherwise have taken a number of years.
T he year 2020 will forever be characterised by COVID-19. Life as
we knew it, came to a standstill ever since the first lockdown was
enforced on March 23 across the country. Confined to their homes,
those who could - took to the internet.
2 Management ReThink December 2020
The Data Story
According to an IAMAI-Nielsen Report1 on Digital India, as of
November 2019, the total number of internet users in India stood at
504 million, out of which 433 million internet users were above the
age of 12.
The fillip to our digital lives has been phenomenal over the last couple
of months, courtesy COVID-19. It would not be incorrect to say that
this pandemic achieved digital growth and consumer adoption in a
few months that would otherwise have taken a number of years.
This can also be attributed to the fact that the fear of venturing out
and catching the virus still looms large in people’s minds. Subsequent
‘unlocks’ have made life slightly better, but in the absence of a vaccine,
people are still restricting themselves when it comes to moving freely
a la pre-pandemic. Although the latest visuals from New Delhi may
indicate otherwise.
It may be too soon to call the present scenario a
V-shaped economic recovery. While the data may
indicate a return to pre-COVID levels, a significant
portion of online shopping may be pent-up demand from
previous quarters, so the next few quarters are critical.
Nielsen Digital in India 2019 Round 2 Report. IAMAI-Nielsen. Retrieved from
1
https://cms.iamai.in/Content/ResearchPapers/2286f4d7-424f-4bde-be88-6415fe5021d5.pdf
3 Management ReThink December 2020age of 12.
The fillip to our digital lives has been phenomenal over the last couple of months, courtesy COVID-19.
It would not be incorrect to say that this pandemic achieved digital growth and consumer adoption in
a few months that would otherwise have taken a number of years.
This can also be attributed to the fact that the fear of venturing out and catching the virus still looms
large in people's minds. Subsequent 'unlocks' have made life slightly better, but in the absence of a
The Data Story
vaccine, people are still restricting themselves when it comes to moving freely a la pre-pandemic.
However, it may be too soon to call it a V-shaped economic recovery. While the data may indicate a
1. AN E-COM SLUMP AND RECOVERY?
return to pre-COVID levels, a significant portion of online shopping may be pent-up demand from
previous quarters, so the next few quarters are critical.
KalaGato,
A wordan automated
of caution — these areconsumer andIndiamarket
online sales — and insights
is still not an out and outplatform,
e-commerce country.
Even by the best estimates, only about 500 million people have internet access, leaving most of the
collected and analysed consumer behaviour data from 5.5 million
populace out of the digital economy.
smartphone users. The data collated revealed that the year began
1. An E-comm Slump and Recovery?
on a happy note compared to 2019, but as soon as the lockdown was
Kalagato, an automated audience profiling, segmentation and targeting platform, collected and
announced, all e-metrics collapsed in terms of actual sales and usage.
analysed consumer behaviour data from 5.5 million smartphone users. The data collated revealed
that the year began on a happy note compared to 2019, but as soon as the lockdown was announced,
Figure all
1.1e-metrics collapsed in terms of actual sales and usage.
Average Monthly
Figure 1.1 Spend
– Average Monthly Spend Value
Value (INR)(INR) 2019 vs.2020
2019 vs. 2020
7,000
Average Monthly Spend Value
6,000
5,000
4,000
3,000
(INR)
2,000
1,000
-
January February March April May June July
2019 3,928 3,967 4,586 5,596 5,141 4,034 4,517
2020 4,728 3,194 2,602 1,411 5,004 6,084 5,203
Figure 1.2
Tier-wise Percentage
Nielsen Digital
1 in India 2019 Roundof Internet
2 Report. Users
IAMAI-Nielsen. RetrievedShopping
from Online
https://cms.iamai.in/Content/ResearchPapers/2286f4d7-424f-4bde-be88-6415fe5021d5.pdf
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Oct-19
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jul-20
Tier1 Tier2 Tier3 + Others
4 Management ReThink December 2020The Data Story
Figure 1.3
Change in Percentage of Internet Users Shopping Online
YoY Change in % of Internet Users Shopping online
Month Tier 1 Tier 2 Tier 3 + Others
Jan-20 2.25% 1.02% 0.65%
Feb-20 -1.64% -2.46% -3.43%
Mar-20 -4.25% -5.19% -6.75%
Apr-20 -7.51% -8.26% -8.37%
May-20 -6.14% -6.05% -6.61%
Jun-20 -3.29% -3.87% -3.32%
Jul-20 0.16% -0.56% 0.10%
With lockdown in place, no deliveries other than essentials were being
made. That perhaps explains the crash which hit all e-commerce
players during the months of March-April. As Unlock 1.0 began, starting
May 17, the situation started to improve with authorities allowing
the sale of non-essential items in designated ‘Green Zones,’ and
thus, unleashed some pent-up demand as is seen in Figure 1.3 above.
With shopping arcades opening up in July end, the only option was
to shop online. It was literally the only market people had access to.
The data we collated brought out an interesting facet of the growing
online adoption. COVID-19 merely acted as a “stumbling block” as
the increase in e-commerce usage was already taking place. As the
infographic reflects that, while tier-one and tier-three cities have
recovered, tier-two cities are taking longer. Interestingly, a large part of
5 Management ReThink December 2020The Data Story
digital consumption and growth comes from both tier-two and tier-
three cities in India.
However, it may be too soon to call it a V-shaped economic recovery.
While the data may indicate a return to pre-COVID levels, a significant
portion of online shopping is pent-up demand from previous quarters,
so the next few quarters are critical.
A word of caution — these are online sales — and India is still not
an out and out e-commerce country. Even by the best estimates, only
about 500 million people have internet access, leaving most of the
populace out of the digital economy.
6 Management ReThink December 2020The Data Story
2. ONLINE FASHION NOT FASHIONABLE ANYMORE?
One of the most vibrant segments, online fashion, has been a booming
space. India’s youth is brimming with rising aspirations; it also
forms the largest chunk of its population. As per a report2 by RedSeer
Consulting, in 2019, while India’s fashion market was growing at
a Compound Annual Growth Rate (CAGR) of 11 percent, the online
fashion segment was growing faster at a CAGR of 32 percent.
The fashion ECommerce industry was looking at another bumper year
until the pandemic normalised ‘Work from Home’ (WFH) and blew
social engagements out of the water. Consequently, business suits,
trousers, crisp collared shirts were replaced by shorts, workout tights
and t-shirts. Afterall, who wears a tie for a Zoom meeting? Even festive
and wedding
Things season
seemed to besales wereoutmuted
well laid for thegiven a rather
fashion empty
industry social
until the pandemic normal
from Home (WFH). Consequently, business suits, trousers, crisp collared shirts were
calendar.
shorts, workout tights and t-shirts, or 'athleisure.' Afterall, who wears a tie for a Zoom m
Figure 2.1
Reach byDaily
Figure 2.1 AppReach
Install forInstall
by App Fashion E-Commerce
for E-Commerce FashionSector
Sector
Daily Reach (by app install)
25.000%
20.000%
15.000%
10.000%
5.000%
0.000%
1/6/2020 2/17/2020 3/30/2020 5/11/2020 6/22/2020 8/3/2020
Ajio Club Factory Myntra SHEIN Zara
2 Figure
Online 2.2Market
Fashion Totalin Session Time2019.
India. November perRedSeer.
day for E-Commerce
Retrieved Fashion Sector
from https://redseer.com/newsletters/
online-fashion-market-in-india/
Total Session Time (minutes per day)
7 Management ReThink December 2020
16.0020.000%
20.000%
15.000%
15.000%
10.000%
10.000%
5.000%
5.000%
0.000% The Data Story
1/6/2020 2/17/2020 3/30/2020 5/11/2020 6/22/2020 8/3/2020
0.000%
1/6/2020 2/17/2020 3/30/2020 5/11/2020 6/22/2020 8/3/2020
Ajio Club Factory Myntra SHEIN Zara
Figure 2.2 Ajio Club Factory Myntra SHEIN Zara
Total
FigureSession Time per
2.2 Total Session Timeday
perfor
day Fashion E-Commerce
for E-Commerce Sector
Fashion Sector
Figure 2.2 Total Session Time per day for E-Commerce Fashion Sector
Total Session Time (minutes per day)
16.00 Total Session Time (minutes per day)
16.00
14.00
14.00
12.00
12.00
10.00
10.00
8.00
8.00
6.00
6.00
4.00
4.00
2.00
0.00
2.00
0.001/6/2020 2/17/2020 3/30/2020 5/11/2020 6/22/2020 8/3/2020
1/6/2020 2/17/2020 3/30/2020 5/11/2020 6/22/2020 8/3/2020
Ajio Club Factory Myntra SHEIN Zara
Ajio Club Factory Myntra SHEIN Zara
Figure
Figure 2.32.3 Daily
Active Users for E-Commerce Fashion Sector
Daily
FigureActive
2.3 DailyUsers for Fashion
Active Users E-Commerce
for E-Commerce Sector
Fashion Sector
Daily Active Users (% of internet users)
25.00% Daily Active Users (% of internet users)
25.00%
20.00%
20.00%
15.00%
15.00%
10.00%
10.00%
5.00%
5.00%
0.00%
0.00%1/6/2020 2/17/2020 3/30/2020 5/11/2020 6/22/2020 8/3/2020
1/6/2020
Ajio 2/17/2020 3/30/2020 5/11/2020
Club Factory Myntra 6/22/2020
SHEIN 8/3/2020
Zara
Ajio Club Factory Myntra SHEIN Zara
8 Management ReThink December 2020The Data Story
Consequently, online fashion to resurrect
retailers who were doing well themselves
in January and February saw mainly due
demand dip in March and April. to the Indian
The lockdown taught consumers government’s
to live with less and reprioritise ban on Chinese applications
spending. This, despite the fact owing to the Indo-China
that many fashion retailers are territorial dispute. The DAU of
allowing customers to shop the two retailers fell from around
online, delivering products from 12-14% in early June to mere
the nearest store, some are even single digits in less than a month
booking potential buyers in following the announcement of
separate slots for store visits. the ban on June 29.
The Figure 2.3 above shows that With many online fashion retail-
going by the Daily Active Users ers launching new collections
(DAU), online e-commerce ahead of the upcoming festive
fashion platforms Ajio and season and offering deep dis-
Myntra have recovered from counts to clear aging inventories,
the slump in demand due to the sector is pinning its hopes on
coronavirus and the subsequent the festive spirit for a revival in
lockdown. However, Club Factory
demand.
and SHEIN have not been able
9 Management ReThink December 2020The Data Story
3. SELF-CARE IS SELF-LOVE
For many people, COVID-19 gave self-care a major push. In an earlier
‘normal’ - we spent countless hours shuttling between home and of-
fice, and self-care took a back seat. The lockdown has also given people
an opportunity to refocus on themselves and create a change in pace.
Figure 3.1
Reach by App Install for Health and Beauty Sector
Figure 3.1 Reach by App Install for Health and Beauty Sector
Reach
Figure 3.1 Reach by App Install (by app
for Health andinstall)
Beauty Sector
4.000%
3.500%
Reach (by app install)
4.000%
3.000%
3.500%
2.500%
3.000%
2.000%
2.500%
1.500%
2.000%
1.000%
1.500%
0.500%
1.000%
0.000%
0.500%1/6/2020 2/17/2020 3/30/2020 5/11/2020 6/22/2020 8/3/2020
0.000% HealthKart Nykaa Purplle 1MG
1/6/2020 2/17/2020 3/30/2020 5/11/2020 6/22/2020 8/3/2020
HealthKart Nykaa Purplle 1MG
Figure 3.2
Figure 3.2 Daily Active Users for Health and Beauty Sector
Daily Figure
Active UsersDaily
3.2 Daily Active
for
Active
Users
Health
Users and
for Health (% ofand Beauty Sector
internet
Beauty Sectorusers)
25.00%
Daily Active Users (% of internet users)
25.00%
20.00%
20.00%
15.00%
15.00%
10.00%
10.00%
5.00%
5.00%
0.00%
1/6/2020 2/17/2020 3/30/2020 5/11/2020 6/22/2020 8/3/2020
0.00% HealthKart Nykaa Purplle 1MG
1/6/2020 2/17/2020 3/30/2020 5/11/2020 6/22/2020 8/3/2020
HealthKart Nykaa Purplle 1MG
10 Management ReThink December 2020The Data Story
Figure 3.3
Total Session Time for Health and Beauty Sector
Figure 3.3 Total Session Time for Health and Beauty Sector
Total Session Time (minutes per day)
14.00
12.00
10.00
8.00
6.00
4.00
2.00
0.00
1/6/2020 2/17/2020 3/30/2020 5/11/2020 6/22/2020 8/3/2020
HealthKart Nykaa Purplle 1MG
The beauty and health segment picked up post-
May after a slump in March-April. Fear and concern
drove people to invest in one’s health and order
products such as masks, sanitisers, disinfectants,
immunity booster packs to herbal concoctions far
more than ordering beauty products and cosmetics. Thus, the daily
active users of beauty retailers like Purplle and Nykaa saw a bigger
slump as compared to online pharmacies like 1MG and HealthKart.
It is surprising to see the recovery and growth in usage of platforms
like Purplle and Nykaa, which are primarily focused on the beauty
products category at a time when social and professional engagements
are at an all-time low.
11 Management ReThink December 2020The Data Story
This space has seen considerable and steady growth over the last three
months. With the pandemic changing lifestyles and consumer focus
turning towards inner well-being, spending on preventive consumer
health care and do-it-yourself beauty products is likely to continue in
the future.
4. LOVE IN THE TIME OF CORONA
We live in the “Swipe Right” era when it comes to matchmaking or
finding love. Online platforms such as Tinder, Bumble, OkCupid and
4. promise
Aisle Love in the
totime
makeof Corona
finding companionship a bit easier.
We are living in the "Swipe Right" era when it comes to matchmaking or finding a date. Online
platforms such as Tinder, Bumble, OkCupid and Aisle promise to make finding companionship a bit
Figure 4.1
easier.
Reach by App Install for Matchmaking-Dating Sector
Figure 4.1 Daily Reach by App Install for Matchmaking-Dating Sector
Daily Reach (by app install)
1.500%
1.000%
0.500%
0.000%
1/6/2020 2/17/2020 3/30/2020 5/11/2020 6/22/2020 8/3/2020
Aisle Bumble OkCupid Tinder
Figure 4.2 Daily Active Users for Matchmaking-Dating Sector
Daily Active Users (% of internet users)
40.00%
30.00%
20.00%
10.00% 12 Management ReThink December 2020
0.00%1.000%
0.500%
0.000%
1/6/2020 2/17/2020 3/30/2020 5/11/2020 The8/3/2020
6/22/2020 Data Story
Aisle Bumble OkCupid Tinder
Figure 4.2
Daily
Figure Active Users
4.2 Daily Active Usersfor Matchmaking-Dating
for Matchmaking-Dating Sector Sector
Daily Active Users (% of internet users)
40.00%
30.00%
20.00%
10.00%
0.00%
1/6/2020 2/17/2020 3/30/2020 5/11/2020 6/22/2020 8/3/2020
Aisle Bumble OkCupid Tinder
Figure
Figure 4.34.3 Total Session Time per day for Matchmaking-Dating Sector
Total Session Time per day for Matchmaking-Dating Sector
Total Session Time (minutes per day)
14.00
12.00
10.00
8.00
6.00
4.00
2.00
0.00
1/6/2020 2/17/2020 3/30/2020 5/11/2020 6/22/2020 8/3/2020
Aisle Bumble OkCupid Tinder
However,
However, likelikemany
manyrelationships,
relationships, this segment
this has also
segment hasseen
alsosome volatility. These apps witnessed a
decline in their reach by May-June after getting fairly decent "engagements" amongst users at the
seenstart
some volatility.
of this These
year. While appsand
Bumble witnessed a decline
OkCupid crashed in 50 percent, Aisle seemed to be the
by almost
theirpreferred
reach bychoice
May-June after getting
as it remained fairly
close to decent “engage-
its pre-COVID levels of usage.
ment” amongst users at the start of this year. While Bumble
5. For the Love of Food: From Dalgona Coffee to Handmade Pizzas
and OkCupid crashed by almost 50 percent, Aisle seemed
to beDuring
the preferred
lockdown,choice as it remained
social media influencersclose to its
of every ilkpre-COVID levels ofChefs."
turned into "Master usage.With restaurants
and hotels closed across the country, food delivery platforms struggled to serve users. From a heady
start in January, this segment witnessed its lowest point in April. Naturally so, popular online food
ordering apps such as Zomato, Swiggy and Dominos did not have "foodful" encounters with their
users. 13 Management ReThink December 202010.00
8.00
6.00
4.00
2.00 The Data Story
0.00
1/6/2020 2/17/2020 3/30/2020 5/11/2020 6/22/2020 8/3/2020
5. FOR THE LOVEAisle
OF FOOD:
Bumble
FROM DALGONA
OkCupid Tinder
COFFEE TO HANDMADE PIZZAS
However, like many relationships, this segment has also seen some volatility. These apps witnesse
During lockdown,
decline social
in their reach media influencers
by May-June of every
after getting fairly decentilk turned intoamongst users at
"engagements"
start of
“Master this year.
Chefs.” While
With Bumble andand
restaurants OkCupid crashed
hotels closed by across
almost 50 percent,
the Aisle seemed to be
country,
preferred choice as it remained close to its pre-COVID levels of usage.
food delivery platforms struggled to serve users. From a heady start
5. For thethis
in January, Lovesegment
of Food: From Dalgonaits
witnessed Coffee to Handmade
lowest point inPizzas
April. Popular
online food ordering apps such as Zomato, Swiggy and Dominos were
During lockdown, social media influencers of every ilk turned into "Master Chefs." With restaura
notand
exactly
hotelshaving ‘foodful’
closed across encounters
the country, with users.
food delivery platforms struggled to serve users. From a he
start in January, this segment witnessed its lowest point in April. Naturally so, popular online fo
ordering apps such as Zomato, Swiggy and Dominos did not have "foodful" encounters with th
users.
Figure 5.1
Reach by App Install for Food Sector
Figure 5.1 Daily Reach by App Install for Food Sector
Daily Reach (by app install)
30.000%
25.000%
20.000%
15.000%
10.000%
5.000%
0.000%
1/6/2020 2/17/2020 3/30/2020 5/11/2020 6/22/2020 8/3/2020
Dominos Swiggy Zomato
Figure 5.2 Daily Active Users for Food Sector
14 Management ReThink December 2020The Data Story
Figure 5.2
Daily Active Users for Food Sector
Daily Active Users (% of internet users)
12.00%
10.00%
8.00%
Daily Active Users (% of internet users)
6.00%
12.00%
4.00%
10.00%
2.00%
8.00%
0.00%
6.00%
1/6/2020 2/17/2020 3/30/2020 5/11/2020 6/22/2020 8/3/2020
4.00%
Dominos Swiggy Zomato
2.00%
0.00%
Figure 1/6/2020
5.3 Total Session Time per
2/17/2020 day for Food
3/30/2020 Sector
5/11/2020 6/22/2020 8/3/2020
Figure 5.3 Dominos Swiggy Zomato
Total Session Time (minutes per day)
Total
8.00
Session Time per day for Food Sector
Figure 5.3 Total Session Time per day for Food Sector
6.00
4.00 Total Session Time (minutes per day)
8.00
2.00
6.00
0.00
4.001/6/2020 2/17/2020 3/30/2020 5/11/2020 6/22/2020 8/3/2020
2.00 Dominos Swiggy Zomato
0.00
In a 1/6/2020
cruel and capital hungry3/30/2020
2/17/2020 world – some of these food
5/11/2020 delivery platforms
6/22/2020 8/3/2020 came up with grocery
delivery options to retainDominos users by introducing
Swiggy
the Zomato Market and the 'Swiggy Store.'
Zomato
Simultaneously, several big-ticket FMCG companies, including ITC, Vishal Retail, etc. partnered with
the food delivery platforms to ensure the delivery of groceries, packaged food items and cooking
ingredients
In a cruel andto the last hungry
capital household in the
world lane. of these food delivery platforms came up with grocery
– some
delivery options to retain users by introducing the Zomato Market and the 'Swiggy Store.'
It was only May onwards
Simultaneously, that food FMCG
several big-ticket aggregators were back
companies, in business.
including EvenRetail,
ITC, Vishal then hotel and restaurant
etc. partnered with
businesses were grappling
the food delivery platformswith
to aensure
gamuttheof problems such
delivery of as staff packaged
groceries, shortages food
(workers moved
items back to
and cooking
villages),
ingredientsfractured supply
to the last chains, in
household and a lack
the lane.of consumer confidence.
To meet
It was onlythese
May challenges,
onwards thatfood
foodaggregators
aggregatorshave
werehad
backtoinreimagine operations
business. Even making
then hotel and safety and
restaurant
hygiene coupled with
businesses were grappling contact-less delivery
with a gamut
15 Management a permanent
of problems
ReThink such
December
offering.
2020
Dine-in restaurants are displaying
as staff shortages (workers moved back to
agility in transitioning
villages), to delivery
fractured supply chains, and
and online food
a lack of deliveryconfidence.
consumer platforms. The sector's recovery trends are
strong and likely to bounce back to the pre-pandemic levels in the coming months.The Data Story
In a cruel and capital hungry platforms to ensure the delivery
world – some of these food of groceries, packaged food items
delivery platforms came up and cooking ingredients to the
with grocery delivery options to last household.
retain users by introducing the
It was only May onwards that
‘Zomato Market’ and the ‘Swiggy
food aggregators got back in
Store.’ Simultaneously, several
business. Even then hotel and
big-ticket FMCG companies,
restaurant businesses were grap-
including ITC, Vishal Retail, etc.
pling with a gamut of problems
partnered with the food delivery
such as staff shortages (workers
moved back to villages), frac-
tured supply chains, and a lack of
consumer confidence.
To meet these challenges, food
aggregators and restaurant own-
ers have had to reimagine opera-
tions making safety and hygiene
coupled with contact-less deliv-
ery a permanent offering. Dine-
in restaurants are displaying
agility in transitioning to deliv-
ery. The sector’s recovery trends
are strong and likely to bounce
back to the pre-pandemic levels
in the coming months.
16 Management ReThink December 2020The Data Story
6. KEEP CALM AND NETFLIX ON:
The lockdown brought cities to a grinding halt. Stuck at home,
streaming services like Netflix and Amazon Prime – providers of ‘Over
the Top (OTT)’ content thrived. It was one of the few segments that
saw a major upswing in subscribers during the peak pandemic period.
Figure 6.1
Reach by App Install for Video-OTT Sector
Daily Reach (by app install)
60.000% Daily Reach (by app install)
50.000%
60.000%
40.000%
50.000%
30.000%
40.000%
20.000%
30.000%
10.000%
20.000%
0.000%
10.000%
1/6/2020 2/17/2020 3/30/2020 5/11/2020 6/22/2020 8/3/2020
0.000%
1/6/2020
Amazon 2/17/2020
Prime Video 3/30/2020 5/11/2020 MX6/22/2020
HotStar Player 8/3/2020
Netflix
Amazon Prime Video HotStar MX Player Netflix
FigureFigure
6.2 6.2 Daily Active Users for Video-OTT Sector
Daily Active
Figure 6.2 DailyUsers forforVideo-OTT
Active Users Sector
Video-OTT Sector
Daily Active Users (% of internet users)
50.00% Daily Active Users (% of internet users)
50.00%
40.00%
40.00%
30.00%
30.00%
20.00%
20.00%
10.00%
10.00%
0.00%
1/6/2020 2/17/2020 3/30/2020 5/11/2020 6/22/2020 8/3/2020
0.00%
1/6/2020
Amazon2/17/2020
Prime Video 3/30/2020 5/11/2020 MX6/22/2020
HotStar Player 8/3/2020
Netflix
Amazon Prime Video HotStar MX Player Netflix
Figure 6.3 Total Session Time per day for Video-OTT Sector
Figure 6.3 Total Session Time per day for Video-OTT Sector
Total Session Time (minutes per day)
100.00 17 Management
Total ReThink
Session Time December
(minutes per2020
day)
100.00
80.0050.00%
40.00%
30.00%
20.00%
10.00%
The Data Story
0.00%
1/6/2020 2/17/2020 3/30/2020 5/11/2020 6/22/2020 8/3/2020
Figure 6.3 Amazon Prime Video HotStar MX Player Netflix
Total Session Time per day for Video-OTT Sector
Figure 6.3 Total Session Time per day for Video-OTT Sector
Total Session Time (minutes per day)
100.00
80.00
60.00
40.00
20.00
0.00
1/6/2020 2/17/2020 3/30/2020 5/11/2020 6/22/2020 8/3/2020
Amazon Prime Video HotStar MX Player Netflix
OTT platforms have been keeping us hooked with tailor-made content for every age group. Per our
data, an average Netflix user spent about 48-79 minutes a day (peaking at 80 minutes a day) while a
Hotstar Premium
OTT platforms haveconsumer spent about
been keeping 38 minutes,
us hooked withandtailor-made
the lesser popular platform MXPlayer also
content
had an average user spending about 47 minutes watching its content.
for every age group. Per our data, an average Netflix user spent as
much as an hour a day (peaking at 80 minutes) while a Hotstar
user spent about 38 minutes and the upstart platform MXPlayer
(owned by Times Internet) also saw an average user spending about 47
minutes watching its content.
However, as cities unlocked, the comforts of
working from home gradually receded. The
authorities allowed workspaces to open with a
skeletal staff and return to some normalcy. This
has had a direct impact on the total amount of
time spent on OTT platforms.
18 Management ReThink December 2020The Data Story
7. ‘ZOOM-ING’ INTO HOUSE PARTY:
However, as cities unlocked, the comforts of working from home gradually receded. The authorities
allowed workspaces to open with a skeletal staff and return to some normalcy. This has had a direct
If COVID-19
impact
forced
on as
thecities
us to practice
totalunlocked,
amount ofthe
time
social
spent on
distancing, video calling
However, comforts of OTT platforms.
working from home gradually receded. The authorities
platforms such as Zoom, Microsoft Teams, Houseparty, et al. brought
allowed workspaces to open with a skeletal staff and return to some normalcy. This has had a direct
7. Zooming into House Party:
impact on the total amount of time spent on OTT platforms.
us closer. Till very recently, the popularity of online meetings was still
nascent
If in India.
7.COVID-19
Zooming However,
forced
into WFH
us to practice
House Party: quickly
socially changed
distancing, old platforms
video calling habits. such as Zoom, Microsoft
Teams, Houseparty, et al. brought us closer. Till very recently, the popularity of online meetings was
Figurestill
If7.1 nascent forced
COVID-19 in India.usHowever, WFH
to practice quickly
socially changed video
distancing, old habits.
calling platforms such as Zoom, Microsoft
Teams, Houseparty, et al. brought us closer. Till very recently, the popularity of online meetings was
Reach Figure by
7.1App
Daily
still nascent Install
Reach
in India. by Appfor
However, WFHVideo-Calling
Install for Video-Calling
quickly Sector
changed old Sector
habits.
Figure 7.1 Daily Reach byDaily Reachfor(by
App Install app install)Sector
Video-Calling
25.000%
Daily Reach (by app install)
20.000%
25.000%
15.000%
20.000%
10.000%
15.000%
5.000%
10.000%
0.000%
5.000%1/6/2020 2/17/2020 3/30/2020 5/11/2020 6/22/2020 8/3/2020
0.000% Hangouts House Party Skype Zoom
1/6/2020 2/17/2020 3/30/2020 5/11/2020 6/22/2020 8/3/2020
Hangouts House Party Skype Zoom
Figure 7.2 Daily Active Users for Video-Calling Sector
Figure 7.2
DailyFigure
Active
7.2 DailyUsers
Daily
Active forforVideo-Calling
Active
Users Users (% of internet
Video-Calling Sector
Sector users)
45.00%
40.00% Daily Active Users (% of internet users)
35.00%
45.00%
30.00%
40.00%
25.00%
35.00%
20.00%
30.00%
15.00%
25.00%
10.00%
20.00%
5.00%
15.00%
0.00%
10.00%
1/6/2020 2/17/2020 3/30/2020 5/11/2020 6/22/2020 8/3/2020
5.00%
0.00% Hangouts House Party Skype Zoom
1/6/2020 2/17/2020 3/30/2020 5/11/2020 6/22/2020 8/3/2020
Hangouts House Party Skype Zoom
Figure 7.3 Total Session Time per day for Video-Calling Sector
Figure 7.3 Total Session Time per day for Video-Calling Sector
19 Management ReThink December 2020The Data Story
Figure 7.3
Total Session Time per day for Video-Calling Sector
Total Session Time (minutes per day)
60.00
50.00
40.00
30.00
20.00
10.00
0.00
1/6/2020 2/17/2020 3/30/2020 5/11/2020 6/22/2020 8/3/2020
Hangouts House Party Skype Zoom
Globally, video conferencing software saw a massive surge in new downloads. As per a report by
Research and Markets on the videoconferencing industry3, video conferencing apps saw a record of
Globally,
62 million video
downloadsconferencing
globally in March. ning of the
software saw a massive surge in year, but the
HouseParty witnessed a significant 3growth spurt in the beginning of the year, but the euphoria
newdeclined
downloads. As per a report
as its Daily Active Usage has fallen euphoria
from a peakde-
of 38.5% at the end of March 2020 to just
by Research and Markets on the
under 3% as of mid-August 2020. Similarly, clined as its Hangouts (probably due to its bundling
Skype and Google
with Gmail) also went down in terms of reach over the past few months.
videoconferencing industry, vid- Daily Active
eo conferencing apps saw a re-
The lockdown's beneficiary seems to be Zoom,
Usage which is now the preferred choice for most office
has fallen from a peak of
meetings and even social events - including both weddings and funerals. Sample this - the total time
cordspent
of on
62Zoom
million downloads
exponentially grew from 2138.5% atinthe
minutes endtoofabout
January March 2020 in July. Zoom's
46 minutes
globally
almostin March.
around 2.2X growth in session time since the beginning of this year is indicative of its adoption.
to just under three percent as
As the economy has opened up, we have seen some decline in Zoom's usage. But even as we return
House Party
to offices – I witnessed
think we mighta find that manyof
signif- mid-August
meetings 2020.
which were Similarly,
previously done in person are now
conducted online.
icant growth spurt in the begin- Skype and Google Hangouts
Unintended Consequences
An accidental by-product of the lockdown is that digital adoption has increased multi-fold in India.
3
VideoWhile the rideCOVID-19.
Conferencing: ahead may not be
Research andsmooth
Markets. – the seeds
Retrieved fromsown today will reap an exponential harvest for
https://www.researchandmarkets.
consumer internet companies in the years to come. People were forced to learn new ways of
com/issues/video-conferencing-demand-rises?utm_source=dynamic&utm_medium=BW&utm_code=lx-
conducting businesses, procuring essentials, and finding entertainment. In the coming few years, we
dphx&utm_campaign=1387029+-+COVID-19+Outbreak%3a+Video+Conferencing+Demand+Rises+-
due+to+Social-Distancing&utm_exec=joca220bwd
will witness the effects of this exponentially larger digital user base across every sector.
20 Management ReThink December 2020The Data Story
(probably due to its bundling with Gmail) also went down in terms of
reach over the past few months.
The beneficiary of the lockdown has been Zoom, which is now the
preferred choice for most office meetings and even social events - in-
cluding both weddings and funerals. Sample this - the total time
spent on Zoom exponentially grew from 21 minutes in January
to about 46 minutes in July. Zoom’s almost around 2.2X growth in
session time since the beginning of this year is indicative of its adop-
tion. As the economy has opened up, we have seen some decline in
Zoom’s usage. But even as we return to offices – I think we might find
that many meetings which were previously done in person will now
be conducted online.
UNINTENDED CONSEQUENCES
An accidental by-product of the lockdown is that digital
adoption has increased multi-fold in India. While the ride ahead
may not be smooth – the seeds sown today will reap an exponential
harvest for consumer internet companies in the years to come.
People were forced to learn new ways of conducting businesses,
procuring essentials, and finding entertainment. In the coming
few years, we should witness the effects of this exponentially
larger digital user base across every sector.
21 Management ReThink December 2020You can also read
