India is expected to be one of the key markets where future growth will emerge. The growth will be primarily driven by a favourable population composition and increasing disposable incomes. India is expected to reach USD 2374 GDP per capita by 2023. Consumer spending will increase in food, housing, transport and communication as well as consumer durables. Some interesting future sectors will benefit, such as sports and electric vehicles. The attached material takes a look also in such consumer related trends as cashless payments, data privacy and AI and technology in consumer businesses.
2. Team Finland Future Watch Report, October 2018
2
⢠âFuture Watch Signal series â India, 2018â outlines future scenarios and
opportunities in India to help Finnish businesses understand the identified
areas and explore future opportunities.
⢠The report focuses on Consumer Trends in India with a projection timeline
from 2018 till 2028.
Structure of the content:
⢠Each topic has further sub-themes and elaboration thereon.
⢠Each theme/sub-theme is detailed out as introduction, indicators (some
early examples of the potential change and identified opportunities.
PREFACE
3. AUTHORS
Team Finland Future Watch Report, October 2018
3
Sajid Khetani
General Manager â Research & Business Strategy
Manoj Kothari
Director & Principal Design Strategist
4. CONSUMER TRENDS IN INDIA
Rise of sports leagues | Holistic Education with
Sports Online and Fantasy games | Sports
infrastructure Management | Fan Engagement
Fintech omni-concierge | Democratizing lending
Team Finland Future Watch Report, October 2018
4
SPORTS AS A FUTURE
CONSUMER SECTOR
CASHLESS PAYMENTS
Infrastructure Capability Building| Last
mile Connectivity
ELECTRIC VEHICLESI
III
II
DATA PRIVACYIV
India charts its âFourth wayâ | Aadhar as a
digital enabler | Data localisation
Personalization | Artificial intelligence | Tech
Primed for âBharatâ
AI & TECH IN CONSUMER BUSINESSV
5. CONSUMER TRENDS IN INDIA
Team Finland Future Watch Report, October 2018
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SPORTS AS A FUTURE CONSUMER SECTOR | ELECTRIC VEHICLES | CASHLESS PAYMENTS |
DATA PRIVACY | AI & TECH IN CONSUMERS BUSINESS
Traditionally in India, sports has not been given a lot of
importance, one of the reason being sports is not seen as a
lucrative career option for the youth. But landscape is
changing rapidly.
Holistic Education Focus:
Sports receded in the priority list of parents and children as
the focus to excel in competitive exams for engineering and
medicine gained priority last few decades. But now there is
a renewed focus on holistic development of a child and
hence startups like EduSports find a niche.
Lack of trained sports professionalsâAs per National Skill
Development Corporation (NSDC) Skills Gap study in the
sports sector, by 2022 India will need 364,745 coaches,
976,938 Physical Education teachers and 363,605 fitness
trainers.
Rise of new formats & leaguesâIn the past, the attitude
towards other (no Cricket) sports has been cold and, in turn
performance in sports has not been good in the
international stage. But now there is a rise of non-cricket
sports leagues (hockey, kabbadi leagues). Sports
sponsorship market is growing at a rate of 12 percent year-
on-year, and is currently valued at upwards of US$887 mn
(Rs 6,000 crore).
Tech in Sports
Technology infusion in games is not very different
from other sectors. Fantasy game run by the IPL, Vivo
Fantasy IPL, has been a hit with supporters. Fantasy
games market is projected to be USD 100 mn by 2020
(30% of total online games market) in India. Tech
companies like Facebook, Samsung, and Google are
making virtual reality (VR) headsets accessible to the
average consumer, which is changing the way Indian
consumers engage with sports. Sports analytics, fan
engagement and sports infrastructure management
will see non-linear growth in near future.
Specialty Sports Retail & MerchandiseâTaking
advantage of Indiaâs FDI rules, Decathlon were able to
set up 60 stores across India. Up to 30 percent of
5,000 products sold under their brand are sourced
from Indian manufacturers. New specialty online
sports goods and event portals are springing up. India
has also emerged as the primary global sourcing
destination for sports goods for multinational brands
such as Mitre, Lotto, Umbro, and Wilson, adding to
the ecosystem for further growth.
I. SPORTS AS A FUTURE CONSUMER SECTOR
6. CONSUMER TRENDS IN INDIA
Team Finland Future Watch Report, October 2018
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SPORTS LEAGUES VIEWERSHIPFACTORS THAT AFFECT OPTING FOR SPORTS
SPORTS-GOODS MARKET CONSTRUCT (2015)
EMERGING LEAGUE FORMATS
ONLINE GAMING MARKET SCOPE IN INDIA
SPORTS AS A FUTURE CONSUMER SECTOR | ELECTRIC VEHICLES | CASHLESS PAYMENTS |
DATA PRIVACY | AI & TECH IN CONSUMERS BUSINESS
7. CONSUMER TRENDS IN INDIA
Team Finland Future Watch Report, October 2018
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INDICATORS | SPORTS AS FUTURE CONSUMER SECTOR
Sports faculty in schools
run by a startup
Experiential sports or
fitness programmes on
demand
Startup connects sports
facilities and sports enthusiasts
A startup based in Bangalore
runs the sports faculty for
800+ leading schools
including DPS Schools, PSBB
Schools, Mount Litera Zee
Schools, Meghe Group of
Schools, TVS Schools, Edify
Schools, Podar World Schools
& Pearson Schools.
Bookmysports organises custom
and fixed overseas sports
programs equipped with digital
& LIVE updates throughout the
tour. Through Bookmysports,
one can arrange International
Sports Camps, Sports
Tournaments, Sports training
camps for the sports of choice.
Playo is a sports community app
that seeks to connect amateur
athletes, venues, and vendors. It
helps users reserve spots to play
various sports at nearby venues,
find coaches, and connects with
potential competitors of equal
skill / calibre levels. It covers
sports like football, tennis,
basketball, table tennis,
badminton, swimming, and
cricket.
SPORTS AS A FUTURE CONSUMER SECTOR | ELECTRIC VEHICLES | CASHLESS PAYMENTS |
DATA PRIVACY | AI & TECH IN CONSUMERS BUSINESS
Fantasy games platform
for the mobile
generation
Dream11 is Indiaâs Biggest Sports
Gaming platform with 4 crore+
users playing Fantasy Cricket,
Football, Kabaddi and NBA. It is a
Game of Skill that offers Indian
sports fans a platform to
showcase their sports
knowledge. Fans can create their
own team made up of real-life
players from upcoming matches,
score points based on their on-
field performance and compete
with other fans.
8. FUTURE OF WATER IN INDIA
1. Holistic Education & Sports
As the idea of holistic education gains ground in
India along with âpremiumisationâ of education
there would be definite rise of adventure sports,
sports tourism (as seen during the past soccer
World cup in Russia). Immersive education
models for schools, crossfit routines and novel
fitness regimes, modern training facilities and
methods would be in demand.
2. Sports infrastructure & management
As the sports renaissance is currently limited to
metros, next few years will see the rise of good
quality sports infrastructure in the tier 2,3,4 cities
like Playisto in Hubli. The market size for using
sports grounds itself is northward of $20 bn in
India. Connected opportunity is in Sports
Infrastructure Management software.
3. Digital opportunities in sports
40 to 50 mn fans in India now actively consume
sports content on digital mediums, allowing
companies to generate ancillary revenues
through digital memorabilia, loyalty benefits,
contests or premium access to programs.
Technology companies can also leverage access
to sports fans through âgamificationâ â building
fantasy sports leagues or mobile apps where like-
minded sports followers can connect. Further,
with major tech companies like Facebook,
Samsung, and Google making virtual reality (VR)
headsets accessible to the average consumer, its
use and application by sports teams and fans
alike could have implications for gaming and
advertising in the near future.
Team Finland Future Watch Report, October 2018
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OPPORTUNITIES | SPORTS AS FUTURE CONSUMER SECTOR
SPORTS AS A FUTURE CONSUMER SECTOR | ELECTRIC VEHICLES | CASHLESS PAYMENTS |
DATA PRIVACY | AI & TECH IN CONSUMERS BUSINESS
CONSUMER TRENDS IN INDIA
9. CONSUMER TRENDS IN INDIA
Team Finland Future Watch Report, October 2018
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VEHICLES GO ELECTRIC AND WHEN?
WHAT IT TAKES IN INDIA?
⢠India is targeting 40 per cent of electricity generation
from non-fossil fuel-based resources by 2030 as a part
of its contribution to climate change protocols.
However, India is currently perceived to be an energy-
hungry climate deal-breaker to a forerunner of a low
carbon future. Though Navroz Dubash of CPR predicts
that 2030 per capita emissions in India will be below
todayâs global average and absolute emissions will be
less than half of Chinaâs 2015 emissions.
⢠Some of the initiatives India has taken in this directions
are making wind and solar energy affordable (Rs. 2 per
unit) compared to Rs 4 per unit of thermal energy,
piloting innovative models like plug and play solar
panels for farmers, creating solar parks etc. Similarly,
the Indian government has organized a Re-Invest is a
forum/meet connecting Global investment community
to India's Energy stakeholders.
⢠With rising air pollution concerns across major cities
in India, the government along with some major
industry players is planning a systematic application
of EV system and infrastructure. All said and done
500 bn units of energy is needed to power Electric
vehicles in India. Currently, India produces 1250 bn
units of electricity 60% coming from coal and 40%
from renewable sources. This 40% is
approximately equal to 496 bn units which is the
just current need to just power Electric vehicles.
⢠Indian government believes that shifting to EVs will
check pollution and also rising cost of fuel imports.
Indiaâs energy import bill is expected to rise from
around $150 bn currently to $300 bn by 2030. The
centre has set a target of 6 mn EV sales by 2020.
⢠To promote adoption of EVâs the Indian
Government has levied tax on Hybrid cars at 43%
levelling with petrol and diesel luxury cars.
Whereas, for Electric vehicles it is 12%.
IIA. INFRASTRUCTURE CAPACITY BUILDING
INFRASTRUCTURE CAPACITY BUILDING |
CONNECTING HUB AND SPOKES
10. CONSUMER TRENDS IN INDIA
Team Finland Future Watch Report, October 2018
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INDICATORS | INFRASTRUCTURE CAPACITY BUILDING
Hyperlocal network
building awareness and
access to electric cars
Hyperloop for India
Smart network for
Electric vehicle
Energy infrastructure
ZAP Subscribe marketplace program
allows individuals to take a long term
subscription for an electric car. From
there, the individual subscriber can use
the car as per his or her requirement.
When the car is not required, it can be
placed on the Zoomcar platform and
then shared by individuals in the
community. This helps reduce the
individual subscriber's cost by up to
80%. This model dramatically alters the
affordability of the electric car, all the
while leveraging AC charging
infrastructure already present in the
home.
Collaboration with global EV
players
INFRASTRUCTURE CAPACITY BUILDING |
CONNECTING HUB AND SPOKES
Hyderabad-based insulator maker
Goldstone Infratech Ltd, having
diversified into the electric vehicles (EV)
business, is planning to set up a
greenfield electric bus manufacturing
facility in the south with an investment
of âš500 crore. Currently, the company is
assembling fully electric buses in India in
technical collaboration with BYD of
China, the biggest EV manufacturer in
the world. They have announced that the
Himachal Pradesh Transport Corporation
has started running its zero emission
electric bus.
Sun Mobilityâs Smart Network
will use Microsoftâs technology
to connect the Sun Mobility
Smart Battery and Sun Mobility
Quick Interchange Station (QIS)
with end users through a mobile
application. The smart network
will help users experience
seamless service delivery of Sun
Mobilityâs energy infrastructure
by tracking battery charge and
identifying the nearest QIS.
The Indian State of Maharashtra
announced their intent to build a
hyperloop route between
Mumbai and Pune, beginning
with an operational
demonstration track. Eventually,
it will transport 150 mn
passenger trips annually, saving
more than 90 mn hours of travel
time, which could result in $55
bn (Rs 3.5 lakh crore) in socio-
economic benefits over 30 years
of operation. That apart, the
100% electric system could
reduce greenhouse gas
emissions by up to 150,000 tons
annually.
VEHICLES GO ELECTRIC AND WHEN?
WHAT IT TAKES IN INDIA?
11. CONSUMER TRENDS IN INDIA
Team Finland Future Watch Report, October 2018
11
⢠Auto rickshaws are ubiquitous with transport in India.
For close to 60 years and now a growing push towards
e-rickshaws.
⢠Delhi alone has around 100,000 auto-rickshaws
(petrol+diesel) and equal number are e-rickshaws (2/3rd
of them not licensed). These provide unmatched
support to the need of last-mile connectivity after metro
trains have landed in Delhi. Here is an interesting
research on the ecosystem of these e-rickshaws in Delhi,
where need for easy charging of the rickshaws and
battery-swapping facility has been articulated.
⢠Bangalore has introduced bike-on-rent at 36 of the 42
metro stations for last mile connectivity. In a survey it
was found that 50% of people who traveled by private
cars, would use Metro, if they had efficient last-mile-
connectivity.
⢠Hyperloop One is expected to be operational in the
Mumbai-Pune sector by 2024 and the 150-
kilometre distance between Mumbai, the financial
capital of India and Pune, one of the leading
Manufacturing and IT hubs in the country is
expected to be covered by Hyperloop One travel in
less than 25-minutes, which currently takes 3-3.5
hours by road or rail. Another large infrastructure
project announced in India is that of Bullet train
between Mumbai and Surat that will be operation
by 2022. These rapid transit initiatives by Govt of
India will only attract riders if there is a great last-
mile connectivity. Electric bike, car, autos and buses
are an efficient way to bridge this gap in the near
future.
IIB. CONNECTING HUB AND SPOKES
INFRASTRUCTURE CAPACITY BUILDING | CONNECTING
HUB AND SPOKES
VEHICLES GO ELECTRIC AND WHEN?
WHAT IT TAKES IN INDIA?
12. CONSUMER TRENDS IN INDIA
Team Finland Future Watch Report, October 2018
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INDICATORS | CONNECTING HUB AND SPOKES
Zoomcar launches solar
battery charging multi modal
urban mobility
Electric three wheelers to boost
last mile connectivity for metro
stations
Petroleum giant HPCL and
Tata Power join hands for
charging infrastructure
Zoomcar has peddled on to launch
a technology-enabled cycle sharing
service. In what may be a first in
India, PEDL includes real-time GPS
tracking, solar battery charging and
built-in alarms .
Deployed around 500 cycles across
Hyderabad (in Gachibowli,
Madhapur, Ameerpet, Begumpet
etc.) for people seeking to do
grocery shopping, running errands,
for fitness purposes and to cover
last mile connectivity. he present
charges are âš3 for 30 minutes
EVs for differently abled
The startup AMPERE aims to
indigenise the four key components
needed to make an electric vehicle,
namely, battery, motor, charger and
controller. The companyâs products
range includes e-cycles, e-scooters, e-
trolleys (for carrying load) and special-
purpose vehicles for waste
management and to cater to
differently abled persons.
In the B2C space, the primary products
are electric cycles and electric two
wheelers. In the B2B segment, the
startup sells e-scooters meant for
courier delivery, door delivery
products.
SmartE is Indiaâs first and largest electric
mobility service, offering first & last mile
connectivity to tens of thousands of
commuters every day
Delhi Metro Rail Corporation along with
SmartE, a startup that operates Indiaâs
largest electric vehicle fleet have
expanded its operations in the capital. A
new service was flagged by Delhi
Lieutenant Governor of Delhi, Anil Baijal
at Dwarka Sector 10 Metro station.
SmartE now operates over 800+ electric
three-wheelers in Delhi/NCR.
Tata Power and HPCL, through this
memorandum of understanding
(MoU), have agreed to collaborate
in planning, development and
operation of charging infrastructure
for electric vehicles (e-cars, e-
rickshaws, e-bikes, e-buses, etc), at
suitable locations across India.
A robust network of charging
stations is very critical for market
acceptability of EVs which will also
ensure last mile connectivity and
thereby facilitate widespread
adoption of EVs.
INFRASTRUCTURE CAPACITY BUILDING | CONNECTING
HUB AND SPOKES
VEHICLES GO ELECTRIC AND WHEN?
WHAT IT TAKES IN INDIA?
13. FUTURE OF WATER IN INDIA
1. Range Anxiety Reduction Solutions for EVs
India has a target of at least six mn EVs on its roads by
2020. But without charging infrastructure falling place, it is
not going to materialize. Tata Power Delhi Distribution Ltd,
has also announced plans to invest around Rs 100 crore to
set up 1,000 charging stations for EVs across Delhi. But
India needs more consistent and standardized FAST
CHARGING solutions looking at the traffic.
2. Green Grid Investments & Management Solutions
India has already reached 34% non-fossil electricity, and
should reach its goal of 40% as early as 2022 â eight years
ahead of schedule. To continue this journey India would
need not just public but also significant private investment
mechanisms in the green grid. India needs Green Fund what
private banks lack: a mission to expand clean energy,
specialised underwriting expertise in clean technology and
access to public capital that can be used strategically to
attract private capital. It can fund small rooftop solar
projects, microgrids and off-grid solar projects have the
potential to transform India.
3. Retrofits for ICE vehicles to convert to EV
With the 2030 deadline inching closer, not just new
electric vehicles would be on the road but also the
old ICE based mns of vehicles. The economics will
favour turning the ICE vehicle into an electric one.
There some early-bird start-ups like Anandalal
Electric in the country who have started doing this.
But this is just the tip of the iceberg and a large
opportunity is open.
4. Pedestrian Friendly City Infrastructure
Rise of EV would push a general awareness in the
public around healthier city habitat which would
include pedestrian friendly infrastructure, last-mile
rental vehicles (electric car, bike and bicycle), food-
atms, automated parking spaces etc.
Team Finland Future Watch Report, October 2018
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OPPORTUNITIES | CONNECTING HUB AND SPOKES
INFRASTRUCTURE CAPACITY BUILDING | CONNECTING
HUB AND SPOKES
CONSUMER TRENDS IN INDIA
VEHICLES GO ELECTRIC AND WHEN?
WHAT IT TAKES IN INDIA?
14. CONSUMER TRENDS IN INDIA
Team Finland Future Watch Report, October 2018
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SPORTS AS A FUTURE CONSUMER SECTOR | ELECTRIC VEHICLES | CASHLESS PAYMENTS |
DATA PRIVACY | AI & TECH IN CONSUMERS BUSINESS
The Indian economy has traditionally been dominated by cash.
However, the increased adoption of smart phones together with a
favorable regulatory environment are pushing the economy to a less
cash-dependent state, and promoting the usage of digital payments.
Demonetization and the subsequent policy measures taken by the
Government of India (GOI) and the Reserve Bank of India (RBI) have
provided further impetus to digital payments.
National Payments Corporation of India (NPCI), an umbrella
organisation for operating retail payments and settlement systems.
Some key actions including expansion of the digital payments
infrastructure at merchant establishments, expansion into rural areas,
relaxation in the PPI norms, incentivization of digital payments at fuel
pumps, toll plazas, insurance portals etc. and launch of the Bharat QR
codes, among others, have helped further the adoption of the
technology.
With a smartphone user base of 340 mn today (swelling to 400mn by
2025 and 800mn overall internet users), a new economy is taking shape.
Aadhar enabled payment system (AePS) was designed to especially
help those who did not own a smartphone, debit cards or any other
instruments. Since its launch, there were 104.2 mn AePS transactions
for a total value of $3.62 bn (INR 26,286 Cr) as of March 2018.
III. INDIA STATUS IN THE CASHLESS WORLD
Transaction value by mode - FY13-17
Mobile wallet transactions - FY13-17
15. CONSUMER TRENDS IN INDIA
Team Finland Future Watch Report, October 2018
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CASHLESS PAYMENTS
Fintech companies are well-known for developing some
of the most easy to navigate and visually appealing UX
designs. Clunky interfaces are just one reason
Millennials donât trust banks and traditional financial
institutions. In fact, 75 percent of Millennials (in India
and elsewhere) would rather bank with big tech
companies like Google, Amazon and PayPal, according
to a recent report
But what makes fintech so exciting is the possibility it
creates for a radical realignment with the customer.
⢠We have seen leading fintech companies transforming
themselves into one-stop destination for customers for
everything they wish to do.
1. PayTm, Indiaâs leading cashless payments app has
introduced a chat feature, which apart from offering the
standard chat features, enables its sellers on its platform
to directly interact and collect the money from the buyers
right from the chat window
2. For its lending business, Amazon India has entered into a
partnership with Bengaluru-based digital lending startup
Capital Float to provide easy EMI options for non-credit
card users.
3. Rise of payments banks riding on the wave of wallet
companies aims to further financial inclusion, especially
through savings accounts and payments services.
4. Early Salary which provides instant micro-finance to
people by skimming through the users SMS history which
includes the bank debit/credit history along with the
userâs social worth score.
IIIA. FINTECH OmnI-CONCIERGE
FINTECH OmnI-CONCIERGE | DEMOCRATIZING LENDING
16. CONSUMER TRENDS IN INDIA
Team Finland Future Watch Report, October 2018
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CASHLESS PAYMENTS
One factor that has played a huge role in the rise of
alternative lending industry in India, was the
slowdown in lending by banks during 2016-17. Loans
to businesses slowed down,forcing many businesses
to seek other methods of financing.
P2P lending in India is set to grow into a $5 bn
industry by 2023. The domainâs origin actually dates
back to 2012, when the first peer-to-peer lending
company i-Lend was launched. At present, the P2P
lending space is populated by more than 30 players
including Faircent, LendBox and IndiaMoneyMart, to
name a few.
Alternative lending startups have already attracted
$220.66 mn in funding between 2015 and 2017,and
this accounts for around 2.5% percentage of the
overall fintech funding of $2 bn during the said period,
as per Inc42 Data Labs report.
⢠To help these platformsâ growth in a structured, fair and
regulated manner, the RBI has released guidelines to regulate
P2P lending platforms and help steer the countryâs social
lending market in the years to come. RBI has proposed giving
Non Banking Financial Corporation (NBFC) status to peer to
peer lending companies in India.
⢠With more than 200 mn active users in India â the largest
anywhere in the world â WhatsApp is expected to drive large
volumes on peer-to-peer (P2P) payments and also become a
popular platform for merchant payments. India is slated to be
the first country globally to get the payments facility from
WhatsApp.
IIIB. DEMOCRATIZING LENDING
FINTECH OmnI-CONCIERGE | DEMOCRATIZING LENDING
17. FUTURE OF WATER IN INDIA
1. Low cost, interoperable technologies
Out of Indiaâs 800 mn mobile phone users, only 400 mn use
smartphones. Of these phones, only 6 mn are NFC-enabled. An
even smaller percentage of users has access to QR code
mechanisms. Means 85% Indians do not have access to the
infrastructure required to adopt the current digital payment
systems that are heavily reliant on smartphones. There is a dire
need, therefore, for a more interoperable and universal method
of digital payments in the country
2. Data is the core of fintech business models
Data is the lifeblood of any financial institution; and will be a
critical foundation for the successful adoption of any advanced
analytics and artificial intelligence. The vast majority of
companies in the fintech space are using data, analytics and
artificial intelligence to fuel their business models.
3. Bio-hack/wearables & blockchain in the payments space
A users fingerprint is now is his authentication, but how can it be
made more secure in this age. That is where the rise of bio-hacks,
wearables & blockchain will play a major role in the future.
Motilal Oswal Securities Ltd one of the leading investment firms
in India introduced the first ever trading smartwatch app for the
Indian markets.
4. Incumbents partner with fintech players & beyond
Due to Increased reduction in the use of intermediaries
between payer & receiver of money (rise of fintech
across different services which creates tailored
experiences by product/value chain segment), has
pushed the incumbents to actively seek partnerships in
the fintech space.
Axis Bank acquiring Freecharge, an e-wallet company
and later on tieing up with GoQii, a wearable company.
State Bank of India joining hands with Jio Payments Bank
to offer payment bank service are few instances which
highlight this trend.
Team Finland Future Watch Report, October 2018
17
OPPORTUNITIES | CASHLESS PAYMENTS
CONSUMER TRENDS IN INDIA SPORTS AS A FUTURE CONSUMER SECTOR | ELECTRIC VEHICLES | CASHLESS PAYMENTS |
DATA PRIVACY | AI & TECH IN CONSUMERS BUSINESS
Leading banks of India (ICICI Bank, HDFC, Kotak,
etc.), stock exchange platform (NSE), information
technology firms (Infosys) are actively evaluating
leveraging blockchain in their various product
offerings viz., cross-border remittances, vendor on-
boarding, KYC, managing and selling non-performing
assets.
18. CONSUMER TRENDS IN INDIA
Team Finland Future Watch Report, October 2018
18
India charts itâs âFourth Way
India is a country that is rapidly moving towards digitization - from
payments to subsidies to unique identity to governance. Data gathering
practices are usually opaque, mired in complex privacy forms that are
unintelligible, thus leading to practices that users have little control over.
According to a âAnnual consumer survey on data privacy in Indiaâ, 79% of
the respondents said they were not comfortable with their data being sold
to third parties, even in exchange for the speed, convenience, product
range, home delivery and price comparison that online shopping offers. In a
first cyber cover for individuals, Bajaj Allianz General Insurance has
launched Individual Cyber Safe policy.
The approach set out in the draft Data Privacy Bill is to be a âtemplate for
the developing worldâ, a âFourth Wayâ that attempts a triangulation
amongst the three existing models of data protection regulation put
forward by the US, the EU and China respectively.
Aadhar as a digital enabler
The Aadhaar number which is a unique identification issued by the Unique
Identification Authority of India (UIDAI), was conceptualised to deliver State
subsidies directly into the hands of beneficiaries.
â 200 mn of India's poor now have bank accounts, home to $4.8 bn in
combined savings.
â 93 mn have health insurance.
â An estimated $2 bn has been saved on the mishandling of subsidies
for cooking gas alone.
The Supreme Court has ruled that Aadhaar Act doesnât violate an individualâs
right to privacy and private entities have been barred from using Aadhaar card
for KYC authentication purposes but still need Aadhaar for various other
purposes including PAN card and ITR filing.
Data localisation
The Reserve Bank of India has asked payment service firms to store a copy of
all personal data in India will have an effect on both foreign and Indian
companies, both big and small. If this policy is implemented, it will mean that
companies as varied as Facebook, MasterCard, Amazon or Google will need to
store significant amounts of Indian user data in India. These measures have
unnerved them and fear, it will increase their infrastructure costs, hit their
global fraud detection analytic platforms and affect planned investments in
India.
IV DATA PRIVACY
SPORTS AS A FUTURE CONSUMER SECTOR | ELECTRIC VEHICLES | CASHLESS PAYMENTS |
DATA PRIVACY | AI & TECH IN CONSUMERS BUSINESS
19. FUTURE OF WATER IN INDIA
1. Data localization and efficient management solutions
Indian government has mandated the large tech
companies to root for localization of data. Massive
infrastructure requirement that data needs calls for
âlow water useâ and âlow electricityâ solutions for data
usage, to make it amenable to have these data centers
spread across the country. Other key requirements,
under the proposed data privacy framework 2018 are
mechanisms for 'Processing Sensitive Personal Data',
'Purpose specification, use & limitation', 'Data
Retention & Quality' etc.
2. Predictive policing & mass surveillance
Predictive policing is the "application of data analytics
to identify likely targets for police intervention and
prevent crime or to solve past crimes". The same
methodology can be deployed for predicting and
protecting data breaches. Beyond just hard crimes,
domestic surveillance is going to be a big opportunity
in India as the government has expressed intentions of
âsocial media snoopingâ for citizens.
Team Finland Future Watch Report, October 2018
19
OPPORTUNITIES | DATA PRIVACY
CONSUMER TRENDS IN INDIA
3. Rethink needed for Aadhar based eKYC
The recent Supreme Court judgement prohibited private
players to access Aadhar based eKYC. It was one of the most
critical reasons for the massive adoption and speed of
delivery of various online/offline products/services, viz., new
mobile connections, mobile-first financial institutions (e-
wallets, payments banks, NBFCs, peer-to-peer lending
platforms, etc.). eg: Retail customer onboarding TAT at a
leading bank had dropped from 6 days to 1 hour on account
of Aadhar & eKYC. What are the alternative ways to speed up
the eKYC process is an opportunity to be actively pursued?
4. Data insurance solutions
With the spike in cloud adoption and data breaches all over
the news, companies/individuals are seeking data breach
insurance to manage their exposure to the financial risk that
accompanies cyber threats. This insurance vertical is still
taking shape and will provide opportunities to the first
mover.
SPORTS AS A FUTURE CONSUMER SECTOR | ELECTRIC VEHICLES | CASHLESS PAYMENTS |
DATA PRIVACY | AI & TECH IN CONSUMERS BUSINESS
20. CONSUMER TRENDS IN INDIA
Team Finland Future Watch Report, October 2018
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SPORTS AS A FUTURE CONSUMER SECTOR | ELECTRIC VEHICLES | CASHLESS PAYMENTS |
DATA PRIVACY | AI & TECH IN CONSUMERS BUSINESS
PERSONALIZATION
Consumers are seeking personalization more and more these
days and are looking for meaningful interactions with
brands/platforms. The rise of voice assistants viz., Amazon
Alexa, Google Assistant, Apple Siri is enabling
brands/companies to deploy in their quest for customer
personalisation. One of the core aspects of Amazonâs Alexa
strategy has been its integration with third-party devices
(non-Echo products) which is derived from the realisation that
to make Alexa truly âubiquitousâ across a bn devices, it needs
to go beyond Echo.
Indian players viz, Niki.ai, Active.ai, Agrahyah are not left far
behind when it comes to helping companies deploy AI en
masse.
ARTIFICIAL INTELLIGENCE
AIâs direct impact in Indian consumer economy would be
through âvoiceâ. With the likes of the Google Home, Amazon
Echo and others entering the Indian market, AI is quickly
making its way into the homes of consumers. Out of the total
9 mn units shipped during Q1 2018 - Amazon sold 2.5 mn
units, Google Home reached a score of 3.2 mn units.
Companies are deploying AI technology in the form of
chatbots, as the default customer support solution for
most services and Haptik is one such AI-based
platform -- building applications for consumers,
publishers and enterprises. According to an Accenture
analysis, AI has the potential to add $957 bn to India's
economy in 2035.
TECH PRIMED FOR âBHARATâ
The majority of Indian internet users are vernacular
language users and the number is expected to reach
500 mn users in the coming years. Google recently
launched Navlekha, a platform to help Indian
language publishers get on the web. Vernacular is
another player enable businesses interact and engage
with their multi-lingual customers in the languages
preferred by them.
V. AI & TECH IN CONSUMERS BUSINESS
21. CONSUMER TRENDS IN INDIA
Team Finland Future Watch Report, October 2018
21
SPORTS AS A FUTURE CONSUMER SECTOR | ELECTRIC VEHICLES | CASHLESS PAYMENTS |
DATA PRIVACY | AI & TECH IN CONSUMERS BUSINESS
V. AI & TECH IN CONSUMERS BUSINESS
A recent study by KPMG India and Google has two key findings:
1. Indian language internet users are expected to grow at a CAGR of 18 percent vs
English users at a CAGR of 3 percent.
2. 9 out of every 10 new internet users in India over the next five years are likely to be
an Indian language user.
Rise of voice assistants
Category wise Indian language
internet users (mns) | Indian
languages - Defining Indiaâs internet,
KPMG in India and Google report
22. CONSUMER TRENDS IN INDIA
Team Finland Future Watch Report, October 2018
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INDICATORS | AI & TECH IN CONSUMERS BUSINESS
Agrahyah rolls out Indiaâs
first voice agency
Niki.ai - AI powered
shopping assistant
Banking through micro
conversations
Agrahyah Technologies, a tech
and content startup working
closely with Amazon Alexa and
Google Assistant, has launched
Indiaâs first-ever voice agency
that will drive âvoiceâ as the next
medium for brands to engage
with their consumers.
AI-based voice bots in
regional languages
The central government is
planning to develop voice
bots powered by an artificial
intelligence (AI) platform to
facilitate the access of
various services such as bill
payments, income tax filings
and provident fund balance
via its Unified Mobile App
for New-Age Governance
(UMANG) app.
Active.ai is an AI and SaaS-
enabled platform that
connects consumers with its
banking partners through
micro-conversations. The
startupâs AI engine, Triniti
employs machine learning,
natural language processing,
natural language generation
and IoT. The virtual assistant
powered by AI can cater to
the emergent banking needs
of the users.
Bengaluru-based Niki.ai is
an AI-powered shopping
assistant. Through its
chatbot SDK, Niki.ai
leverages the technology of
natural language processing
and machine learning to
converse with the
customers over a chat
interface, to shop for
products and services.
SPORTS AS A FUTURE CONSUMER SECTOR | ELECTRIC VEHICLES | CASHLESS PAYMENTS |
DATA PRIVACY | AI & TECH IN CONSUMERS BUSINESS
23. FUTURE OF WATER IN INDIA
1. Vernacular (Indian) languages and voice
commerce
With a growing online language user base, brands and business
would focus on tier 2 & tier 3 centers along other untapped
markets. There would be significant investment in creating a
digital channel by the likes of e-commerce players, financial
institutions, etc., enabling direct access to a large portion of
consumer base. Voice enablement (voice bots) for transactions
and authentications will further add to the opportunity base.
2. Social commerce - enabling community based
commerce
Social commerce is gaining traction in India, as the nationâs
cultural diversity coupled with an increasingly tech-savvy
population is creating opportunities for marketers to establish
community based virtual platforms.
Referrals, trust factor on personal experiences and ability to
connect themselves with others in the community remain as
the key reasons for the growth of this mode of commerce.
Some examples of social commerce - financial investment for
women, insurance policies, maternity & baby care, etc.
Team Finland Future Watch Report, October 2018
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OPPORTUNITIES | AI & TECH IN CONSUMERS BUSINESS
CONSUMER TRENDS IN INDIA
3. Alternate commerce to reach untapped
customers
A combination of omni-channel model and assisted
commerce, is poised to become a key enabler to drive sales
for the Indian retailers. Significant opportunities in the market
are driving the countryâs brick and mortar players to change
their strategy to offer services online and vice-versa. Brands
and businesses are moving towards an omni-channel
approach to offer a complete and seamless consumer
experience to an evolving consumer.
4. Human Assisted AI training
To provide human-like results, the algorithms need human
interaction too. eg: tasks like creation of photos of facial
expressions which can train an AI system that relies on facial
recognition and gauging emotional states. This task and
similar micro-tasks require huge datasets for training the AI
algorithm.
This is where the need and opportunity of human assisted AI
training presents itself. India could become the hub for data
cleaning around the world. The IT services industry could
easily transition into human-trainers of AI, a need that already
exists.
SPORTS AS A FUTURE CONSUMER SECTOR | ELECTRIC VEHICLES | CASHLESS PAYMENTS |
DATA PRIVACY | AI & TECH IN CONSUMERS BUSINESS
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