We’re at a tipping point when it comes to digital: Rohit Shankar

India is going under a fundamental shift in income and consumption structure. According to some estimates, there are about 117 million upper middle & higher income households in India as of 2022. By 2030, this number is going to become 195 million, an addition of 80 million households in that particular income strata. And this number will surely impact the use of digital platforms in more than one way. 

At the TechManch Summit 2023, Rohit Shankar, Partner, Bain & Co., demonstrated a presentation on ‘India e-CONOMY Report’. He said, “There has been a phenomenal increase in online usage, which has also put India well ahead of the world’s largest digital economies. Average online usage today is about 6.5 hours a day per person and this is higher than evolved economies like China. There are about 470 million users on social media, which is far ahead of developed economies like the US. Hence, that brings really high-quality engagement. “It's not just about the quality of people online but the quantity of time that they're spending and the multiple types of things they’re doing. From discovery, to engaging with others and content, to making digital transactions and purchases,” he added.

Digital adoption has also now reached a tipping point where 220 million people shop online, 110 million make purchases in games, 65 million people order food online. 

Shankar said, “The interesting thing here is it's not just about top tier cities like Delhi, Mumbai, Hyderabad or Calcutta but more about tier two India. They’re just as digital savvy as their metro counterparts. They spend more time online and especially on digital services like food delivery, education. They’re a sophisticated and evolved digital consumer now.”

“Large organisations are responding to these trends as well. There are seven imperatives that help businesses today to thrive tomorrow. Mindshare and market share are becoming similar. Hence, building mindshare will help a brand in a wider market share,” said Shankar.

“Convenience comes next. UI and UX are becoming increasingly important because fundamentally, brands have a very limited window today to be able to reach, impact and finally monetise the interest of consumers. Next, personalisation is something consumers are ready to pay more for. Being able to do this at scale is the key.”

Shankar further highlighted that most brands today are competing online. “They’re competing on a level playing field. So, there is all the more reason to portray what your brand stands for. Hence, it's important to communicate your brand values via any of the digital mediums.”

Breaking into new worlds of digital, operating in the new model and nurturing new revenue streams were other important imperatives that he suggested. 

“Off course the world is changing and everyone has been saying that for a very long time. But if I look at the last three to four years, we’re actually at a tipping point when it comes to digital. What matters is how we utilise this medium to not just survive but for our brands to actually thrive,” he concluded.