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The Indian Market – An Outsider’s Perspective
What is this Presentation about?
About one of the most Interesting Markets in the World!
OK, Seriously! The Indian Market is...
• Growing• Maybe not growing as fast as we would like it
to• Different in several ways from more traditional
Markets that I have worked in, such as USA
So let us try and take stock of some of these differences
The US Web Presence Market • Internet Users: 280 Mn (87.5% of national population)• Number of Active Websites: 31.6 Mn• Number of Domain Names: 79 Mn
The US Web Presence Market Observations:
• Both Web Design Agencies & DIY Tools have substantial demand
• Almost 60% of SMB Websites are designed by Web Professionals
• Highly mature market with fairly high domain renewal rates
• Several established players with a high rate of consolidation
• Single digit growth rates
India Internet Landscape
Domains Growth in India
The Indian Web Presence Market
• Internet Users: 354 Mn (28.3% of national population)• Number of active websites: 1.2 Mn• Number of domain names: 2.3 Mn
The Indian Web Presence Market Observations:
• Largely DIFM Market & Web Professionals have substantial demand
• More than 95% of SMB websites in India are designed by Web Professionals (such as you)
• However, domain renewal rates are not there yet (Indian customers don't seem to think a website adds value to the business)
• Several established players and growing consolidation• High Growth Market - over 25% YOY (but should it be
growing faster?)
Comparing Web Presence Customers - by the numbersUSA• 3% Potential CAGR in market size by revenue over the next
3 years• $135 ARPS/yr• 4.1 Avg. number of products per customer
India• 17% Potential CAGR in market size by revenue over the
next 3 years• $50 ARPS/yr• 1.8 Avg. number of products per customer
The Indian SMBs/Website Owners• Have far lesser affinity towards technology (except startups
of course)
• Are very focused on their Return on Investment
• Are typically risk averse and this makes them resistant to change
Let us now understand theircustomers – the Internet Users
Age DemographicsIndia US
18-32 54% 30%
33-44 20% 23%
45-54 14% 22%
55+ 12% 25%
The Indian Internet Population skews significantly younger than the US
Distribution of Internet users among different age groups
The First Adopters of the Internet in India are only reaching a position of influence now!
So here's how I see the Various Players in the Indian Market Trending…
• Internet Users: will form a significant portion of the addressable base for SMBs, with ecommerce thriving
• SMBs: will be forced to adopt to the change and have a basic web footprint on all mediums
• Web Presence Product Companies: have to tackle the challenges that consolidation brings in and build a services portfolio, to stay in the game
• Web Presence Service Companies: will need to position themselves well, in terms of the value that they bring to the SMB
Endurance has always had a strong focus towards helping SMBs get Online Let us take a quick look at some aspects that have also worked for us in the past
Experience in Acquiring Customers
• Tactful Guerrilla Marketing• Smart &Differentiated Positioning• Strong Affiliate Networks• Astute Investment in Advertising
Experience in Retaining Customers• Huge amounts of focus on customer support• Great UI across all products• Simplifying payments - Offering as many options as
possible• Always reaching out to a customer with something that can
potentially add value to his business
Some of this may or may not work in India today, but other ideas might!...
Try A Micro Affiliate Model• India is a Price Sensitive Market - so offers
represent greater value• Imagine a model where you incentivize your
customers to refer you to more
Try A Micro Affiliate Model• Referral Commissions to every Customer
– Rely on word-of-mouth & good reviews– Lower thresholds, lower commissions– Maximize return on marketing spends
• Deliver Personalized & Prompt Customer Service– Make your customer feel privileged & valued– Ensure that the customer recognizes the value in
every purchase and product
Our Success in this Market is tied together, and we love it! :)
The Indian Market is slowly but surely becoming a Giant!