Updated: 09/26/2018 16:25 IS
Mumbai [India]Sept. 26 (ANI-BusinessWireIndia): A recent study by Cosmos Strategy – one of the country’s leading strategic consulting firms based in Mumbai – found that the next leg of the nation’s growth potential lies in the telecommunications and retail sectors.
The study shows that the country’s telecommunications and retail sectors will see dramatic growth in the coming years, with 10% growth expected by 2025 from the current 10%.
This would be one of the largest sectoral revolutions the country would see in the near future.
The current undermining of microfinance, the lack of exciting microinvestment options and the extreme fragmentation of the retail sector are opportunities waiting to innovate to gain significant valuation from operators through new services.
The Indian cellular landscape has seen a tectonic shift in the past two years after the introduction of Jio. After two decades of continuous revenue growth, the past two years have seen both incumbent revenue and profitability decline. According to TRAI data, industry revenue was 280,000 crores in 2016, down 10% to 255 in 2017 – all while data service usage has quintupled, requiring significant investment in capacity building.
While explaining the future growth potential of the sector, Nilanjan Mukherjee, Managing Partner of Cosmos Strategy, said: “Indian telephone companies should now redefine their business model in terms of their core strengths and based on today’s internet and smartphone reality they should be on a much wider spectrum participate in activities. “
“We must remember that for 80% of Indian consumers, the smartphone is the only device they use to explore the Internet. This provides an opportunity for operators to gain fantastic customer insight into data services to improve their revenues. But today, unlimited calls and bold data quotas have made such activity a thing of the past. So instead of regretting it, it will make sense to set up a completely different customer insight program. The first option, as the largest internet service provider, is to set up an AI-based customer insight engine. Privacy issues are widely discussed, but appropriate precautions can be taken to ensure customer protection. Such a database alone has incredible potential – companies like Google and Facebook earn billions from it. such insights into monetization “
Mr. Mukherjee continued: “The second area is a large customer base who are spending more and more digital purchases on their smartphones. When you see some of the most exciting startups that have gotten high ratings – say PayTm or Flipkart and witness their flagship product – mobile charging and smartphones make up almost half of their revenue portfolio. You can see the hunger, the dexterity and the single-minded focus Never ignore PayTm or Flipkart – but the operator could have done better that way. If the big operators had set up a dedicated digital top-up platform and not allowed any outside service to sell their product, they would now have a business worth billions of dollars. While buying over the phone is a reality today, tomorrow the same services will work on a voice-activated platform as the world’s Alexa’s. It will be interesting to see whether operators manufacture such futuristic products themselves and not ext erally add value. Operators are also well positioned to upgrade customer smartphones with contextual, knowledge-based offers (camera quality for selfie users, battery life for video users or large memory for strong app users). They can even sweeten the business by bundling their own voice and data services together with the phone. “
Mukherjee moves on to some other areas that have incredible potential without strong players who he believes could have the maximum potential in the future. “The large customer base, the high level of trust and the deep local presence, coupled with the flexibility of the digital world, give the operators great leverage to introduce services such as microcredits or microinvestments – India is a country with wealth at the lower end of the pyramid and no one can research this better today than cell phone operators. “
“Retail is also one of the largest areas waiting for innovation. Our highly fragmented retail presence in India is now coming under pressure due to discounts from e-commerce giants like Amazon. The effective solution to the retailer’s problem has already been demonstrated ”in neighboring China. Ule, a service created by Tom and China Post, provides an e-commerce platform for inter-consumer business that supports online and offline business integration, sales, logistics and advertising. Despite Alibaba and within a short span of a year, Uli has today sales of over $ 1.3 billion and has brought relief to small retailers by creating greater inventory visibility and fulfillment by bundling retailers. One such service platform is in India an urgent need and, in terms of infrastructure capacity, it can ideally be created by mobile operators. “
“The success of Hike, Wink and Jio TV has proven that operators are already activating in the OTT area. But mobile operators around the world have brought similar products to market. The real question is to find the right structure that captures the hunger and agility of a start-up with the strength and skill of an operator. “(ANI-BusinessWireIndia)