Back News Detail

Ecological report on Indian mobile internet Chindia strategic cooperation

TECHINASIA

The comparison of economies in China and India is one of the hottest topics worldwide.

Mr. Jairam Ramesh, Indian economist and Minister of State for Environment and Forestry, published a symposium titled Making Sense of Chindia: Reflections on China and India in 2005, in which a new word Chindia (China+India) is created. The symposium describes the necessity of cooperation between China and India in the 21st century in the view of Chindia. The current Prime Minister of India visited China three times when he served as a governor to develop the economy of India with reference to Chinese model of economic development.

In the Indian Mobile Forum of GMIC 2016, LEOMASTER released Ecological Report on Indian Mobile Internet, which analyzed the development of the Indian Internet.

The PEST of India promotes the development of mobile Internet

In recent years, China’s domestic mobile Internet companies become a nonnegligible power of the global mobile Internet industry. Especially when Chinese APP market enters red ocean stage, many mobile developers in China look abroad for business opportunities, including India. On the other hand, India is deepening reforms in terms of politics, economy, society and technology.

Modi took office as the Prime Minister of India in 2014. He encourages the manufacturing industry development, introduces investment in 15 industries to improve economic openness, encourages people to do business creatively and drives innovation. The effect of reform for 3 years in India, which can be rivaled with that for 30 years in China, results in a marked rise in government’s work efficiency. Moreover, India’s GDP may increase by 2 percentage points after its government unifies GST rate.

With comparable population sizes, both China and India are fastest-growing large economies in the world. Although Indian per capita income is only a quarter of China’s per capita income, its mobile data tariff is the same as that in China, which is not a development trend.

In addition, as a collection of diverse national and cultural groups, India has a unique cultural phenomenon involving 35,000,000 gods. With such religions, Indians are willing to open and share. Meanwhile, they imperatively need to protect their privacy due to the interfaith environment. This is a major reason why LEOMASTER firstly launches LEO Privacy in India.

In order to implement localization, LEOMASTER respects the multi-language, multi-culture and multi-religion needs of Indians. Mr. Dirubai Ambani, the former richest man in India, explained that the only reason for him to invest in the telecommunication industry was talkative Indians. Nearly 99% of Indians like music of Bollywood. Indian national sport is cricket, which is the only sports hobby of most Indians.

Technologically, the fourth generation (4G) Internet, which is established by the former richest man in India and known as “national expectation” as well as the national Internet covering FTTH and HOTSPO will be the true inflexion point in the history of Indian Internet. The supporting services include 4G mobile phone worth 600 yuan, 6GB traffic, free and unlimited calls.

In conclusion, religions, English as well as mobile phones and Internet are three necessities of life and rigid demands of Indians.

The mobile Internet industry scale of India increases year by year

Currently, although the Internet advertising industry scale in India is increasing at a 30% rate annually, the volume is still relatively small. The game industry increased by 50% in 2015, but the volume of the game industry scale is relatively small due to weak network infrastructure, nonpayment habit, non-universal online payment, expensive data traffic, etc.

Moreover, e-commerce in India is experiencing booming growth. What’s more, Alibaba Group of China also invests in India. However, the e-commerce market in India is shared by Flipkart, Snapdeal and Amazon (India). The online shopping volume in India is smaller than shopping boom in China.

In addition, in terms of GDP per capita, India is far less than China, and there is a nearly 5 times difference. In 2014, the growth rates of GDP achieved a satisfactory intersection at 7.3% in India and China. However, the growth rate of GDP in India exceeded that in China in 2015 and started a 10-year golden period of development.

Generally, all economic indexes and growth rates in India are relatively high and the volume is relatively small. Such environment resembles that of China 10 years ago. Therefore, it presents Chinese Internet enterprises the best chance for overseas investment in India. LEOMASTER has focused on its business in India from its establishment in September 2014 and products’ launch in November 2014. LEOMASTER has more than 300,000,000 users in India by now.

The mobile Internet user scale of India increases year by year

At the beginning of 2016, the Internet penetration in India exceeded 20%. It is an inflection point beyond which the user growth will accelerate, and smart phones are rapidly and widely used in India with the shipment of 1,500,000 phones per month. Meanwhile, the game industry in India develops greatly, and the number of game players massively increases.

The mobile application download volume in India increases based on personal demands

The first rigid demand in India is instant messaging software, which is followed by e-commerce. The photography and video apps that belong to the second popular category in USA and China fail to be present in top 10 apps in India. On the contrary, English apps that have small downloads in China are popular in India. Moreover, the news aggregation APP is a new growth point. Based on investigation and survey, LEOMASTER finds that the huge demographic dividend and massive mobile phone user group in India contribute to the demand of privacy protection apps.

Ten trends of mobile Internet in India

 

Under the promotion of various factors, LEOMASTER predicts that Indian Internet will develop with 10 characteristics, i.e. first year of video industry, spring of web advertising, cultural liberation, emergence of inflection point, dawn of the game, emergence of new browser, rise of local companies, last push of foreign companies, competition among news aggregation apps and great age of e-commerce.

The elite culture monopoly of Bollywood and shackles of Hinduism on human nature are being released. For example, the famous actress Padokune exposed her cleavage in 2014. The popularity of Dubsmah in 2015 also shows the strong desire of people for participation. Although the ACGN culture is still far from acceptance by all Indians, it is predictable that the Indian culture will be opened and liberated with the effect of Internet.

Moreover, the life-style of Indians will be greatly changed with the comprehensive coverage of 4G Internet, popularization of mobile payment, Google play access to operator billing and emergence of inflection point for video and live-broadcasting platform, which will be implemented in the second half of 2016 or at the beginning of 2017.

Four characteristics of Chindia strategic cooperation

 

Chinese Internet enterprises play more and more important roles in liberating the productivity, promoting economic reform with innovation and striving for industry upgrade in China for new normal state of economy. China has the most powerful Internet human resources in the world, millions of R&D engineers and continuously outputs such talents. India has not more than 100 thousand of R&D engineers, of which senior engineers are normally employed by large companies in Europe and USA. The industries in India just start to develop. With the strong financial and policy support of India government, the infrastructure in India is not mature, and the education, traffic and energy industries should be established with priority. Therefore, the Internet industry is at relatively weak position in the resource allocation. Therefore, the Chindia strategic cooperation will develop in such aspects as technology, investment, users’ traffic and monetization.

In conclusion, the Internet development structures of China and India are interdependent. Both countries should seize the opportunity and make use of their respective advantages to strengthen cooperation based on their glorious histories. It is the fascination of Chindia, isn’t it?

Previous Next