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Tag: Deloitte India

  • 50% of user transactions on the FS platforms have come through tier 2 & 3 cities

    Fantasy Sports Industry to contribute INR 24,300 CR: FIFS-Deloitte Report

    By Our Staff

     

    The Federation of Indian Fantasy Sports (FIFS), India’s self-regulatory industry body for Fantasy Sports (FS), has unveiled the findings of a report titled ‘Fantasy Sports: Creating a Virtuous Cycle of Sports Development’ in collaboration with Deloitte.

     

    According to the report, India is the world’s biggest Fantasy Sports market with a user base of over 13 crore, which is expected to further grow at a CAGR of 32% in the coming years. The country has become a high-growth, in-focus market for FS due to factors like large tech-savvy millennial population, growing affiliation with sports, rapid smartphone penetration, availability of low-cost mobile data; and the market size is projected to grow from INR 34,600 cr in FY21 to an estimated INR 1,65,000 cr by FY25 thereby clocking a CAGR of 38%.

     

    Said FIFS chief executive officer (CEO), Anwar Shirpurwala: “We can infer that the generation of INR 5,200 crore revenue, in FY21, would have created an indirect revenue of approximately INR 5,500 crore through its vendors and service providers. The total revenue attributable to FS (direct + indirect) is therefore INR 10,700 crore. It may also be noted that the indirect revenue will generate its own stream of GST as well Fantasy sports industry is making huge economic inroads into India’s overall growth and development in multiple ways – creating highly skilled jobs, attracting foreign direct investment (FDI) and generating significant revenue for the exchequer. Besides, it is also propelling sporting culture and giving a boost to non-cricket sports as people tend to hone knowledge to participate in fantasy sports contests. Taking cognisance of the potential of this sector together with multiple favourable court judgements, primary government think tank NITI Aayog has released comprehensive guidelines for Fantasy Sports.”

     

    Sharing his thoughts about the sector, Prashanth Rao, Partner, Deloitte India said: “Online Fantasy Sports has, over the past few years, witnessed unparalleled growth and widespread acceptance among the Indian Sports Fans. By leveraging cutting edge technology, developed locally, this sunshine sector is now emblematic of the Indian ‘Atma Nirbhar’ vision of self-reliance and growth. I believe that FIFS can help the sector unlock its true potential by encouraging responsible rule-based gaming and contributing to the development of the sporting industry in India.”

     

  • Unconventional, agile, and tech-driven strategies to help reboot consumer industry, notes the fourth edition of the Deloitte-FICCI report

    Phygital and sustainability approaches to yield new growth avenues for the retail-FMCG: Deloitte

    By A Correspondent

     

    Deloitte Touche Tohmatsu India LLP (DTTILLP, in short, but better known as just Deloitte) and FICCI launched the fourth edition of their joint report called Reboot in the annual edition of Massmerize 2020. FICCI Massmerize is the flagship Retail and FMCG event by FICCI’s consumer committee that works towards collaborating with industry leaders and stakeholders from these industries.

     

    Built on a six-step approach, this report emphasises the need for consumer brands to r-e-b-o-o-t their businesses in view of the disruption and the changing consumer behaviour.  As businesses need to ‘Realign’ their business models and partnerships, ‘Enhance’ consumer experience through technology and Analytics, ‘Build’ resilient distribution, develop their  ‘Omni-channel’ presence, ‘Operate’ efficiently, and ‘Thrive’ by focusing on sustainability.

     

    Speaking on the launch of the report, Rajat Wahi, Partner, Deloitte India, said: “while the pandemic brought massive disruptions across the value chain of the consumer sector, most companies adapted by building agile business models and innovative marketing strategies, along with expanding their presence through the online platforms to reach their consumers. The prolonged lockdowns have also dramatically transformed consumer buying behaviour while making them more health and socially conscious.

     

    Added Dilip Chenoy, Secretary General, FICCI said, “‘India has emerged as one of the most attractive investment destinations with the increasing disposable income, rapid industrialization, and a shift in the demographic pattern. Amongst the significant contributors to this growth story have been the consumer-centric sectors, such as retail, FMCG, and e-commerce. India is one of the world’s fastest-growing major economies and has immense potential. Increased involvement and participation of businesses with the help of supportive policy measures will help capitalize on this potential and achieve the societal goals of inclusive growth and empowerment of the people.’’

     

    Trends/lessons learnt from Covid-19

    1. Acceleration in e-commerce sales as stay-home phenomena drove significant purchases through e-commerce.

    2. Increased demand from rural: Covid-19 has led to massive reverse migration, which in turn has driven up rural demand, favouring companies with strong rural distribution

    3. Focus on health, hygiene, and nutrition: Health concerns and the need to build immunity have led consumers to buy home sanitation and immunity boosting products.  As a result, these categories have seen major growth since March ‘20 and this is likely to continue into 2021.

     

    4. Reconfigure distribution to explore omni-channel models: The pandemic, with frequent lockdowns, compelled companies to re-configure their distribution models within a short period, even forging new partnerships and alliances to achieve that.

    5. Existence through phygital approach: As digital-savvy consumers look for a mix of digital and physical engagements, ithas led to retailers building an omni-channel presence to provide best-in-class customer experience.

    6. The Covid-19 crisis has put sustainability in the spotlight and companies are now seeing sustainability through the lens of growth as well as bottom line, and using their sustainability initiatives to better engage with their customers.

  • The acquisition will augment Deloitte’s media industry prowess

    Meenakshi Menon’s Spatial Access is now a Deloitte company

    By A Correspondent

     

    It’s formal and final. It’s was rumoured to have happened in February this year, but now the official commuique has been issued. Deloitte Touche Tohmatsu India LLP (Deloitte) has acquired Spatial Access, the leading advertising and marketing advisory and analytics firm, founded by Meenakshi Menon. The move will  enhance Deloitte’s advisory capabilities and enable brands to make more efficient advertising and marketing (A&M) decisions.

     

    Speaking on the acquisition, Chandrashekar Mantha, Partner, Media and Entertainment Industry lead, Risk Advisory, Deloitte India said “Deloitte strengthens its foothold in the advertising and marketing advisory space by enabling our clients to enhance the effectiveness of their marketing spends which are directly aligned to their business objectives. Our endeavour is to help brands address their business challenges by introducing value added, and differentiated tech-enabled solutions across the A&M value chain,” he added.

     

    On working with Deloitte, Menon added: “We are excited to be a part of Deloitte. At Spatial Access, our differentiator lies in understanding the key challenges of the advertising and marketing fraternity. We have an insiders’ view of the industry.

     

    This proposition – combined with the need to scale up the impact of marketing through the technology and analytics skills of Deloitte is poised to provide a more holistic, effective, and efficient solution suite on a larger platform and most importantly, deliver significantly enhanced value to our stakeholders.”

     

    Spatial Access had a team size of around 30 people and over the last 15 years has carve a niche in the industry with its media spends advisory specialisation.

     

     

  • A breakthrough year to kickstart the 4G revolution in India, notes the Deloitte India report on TMT

    Social media to power m-commerce boom: Deloitte

     

    By A Correspondent

     

    The 6th edition of Deloitte India’s predictions for the Technology, Media & Telecommunications (TMT) sector in India Deloitte India predicts that the future of e-commerce in the country is expected to be m-commerce. It also highlights that the boom in m-commerce will be powered by social media, and is likely to become the need of every business.

     

    According to the Deloitte TMT India Predictions 2016 report, mobile ad spends are expected to grow from current 2-4 per cent to 15-20 per cent of the overall media expenditure by 2020. Mobile advertising in India is fastest growing among all segments in the digital advertising space, and is gaining momentum through various apps and mobile sites.

     

    “With telecom operators launching 4G and hi-speed Wi-Fi services, mobile-based internet connections are set to surge which will also fuel growth in social media users,” said PN Sudarshan, Senior Director, Deloitte India. “At the same time, more and more consumers in India are accepting the idea of buying products online through social media. Accordingly, e-marketers will have to devise their strategies factoring in the digital surge.”

     

    In the coming years, Deloitte India expects digital-first brands – brands that can only be purchased online – to see strong growth across categories such as budget fashion, furniture, jewellery and groceries. These are categories where India has strong design and manufacturing capabilities, thereby allowing companies to set up an efficient supply chain and sell these products at high gross margins.

     

    The report adds that there will be significant adoption of e-commerce in the retail medicine sales market. Medicine e-commerce players would look to take advantage of the inefficient distribution system leading to non-availability of medicines and the issue of counterfeit drugs which currently plague the existing physical pharmacy business. The market for pharma e-commerce will grow 10 times to $400 million in 2017.

     

    Giving a significant boost to the e-commerce boom will be the rollout of 4G in India. According to Deloitte India, 2016 is set to be the year that would herald the 4G revolution in India. While 4G services have been present in the country since April 2012, the push for mass rollouts across major markets gained momentum from 2015. Aggressive 4G rollout plans from major operators and the growing demand for and availability of affordable 4G-enabled handsets point towards 2016 being a breakthrough year to kick-start the 4G revolution in India.

     

    Additional findings from Deloitte 2016 TMT India predictions include:

    Technology

    :: Wearables: The next smartphones: Deloitte predicts that in 2016, digital wearables would have experienced a significant adoption across consumer segments though it would primarily emanate from tier 1 and 2 cities. The global sales of wearable devices is expected to be approximately 250 million units by 2018, while the major portion of the sales will be driven by North America and Europe, India is expected to have some participation in this segment. According to Deloitte, fitness trackers and smartwatches will see mass adoption in the coming years and expect safety devices geared towards location tracking and emergency assist to also see significant adoption.

     

    :: The emergence of smart cities in India: Deloitte estimates that $150 billion needs to be invested in the development of smart cities in India over the next few years. Several challenges remain with respect to the development of smart cities including those related to project funding, project management, government decision making and policy & regulatory framework. Deloitte expects that despite existing challenges, service providers will increase investments in the development of smart city solutions. Major service providers will also continue to invest heavily in infrastructure solutions relevant for smart cities (e.g., Wi-Fi, fibre networks, and backhaul networks).

     

    Media

    :: International television content on an upswing: International TV content popularity is likely to increase significantly. As digitization in tier 2 and tier 3 cities picks up, TV viewers will be able to access niche channels resulting in increase in viewership of English entertainment and movie channels. Channels will differentiate themselves by broadcasting content along with the US and Western Europe, attracting customers to pay premium subscription charges for these channels.

     

    :: Cinema content: Reality into reel: Deloitte predicts that content will be king and theme experimentations such as biopics and reality will be the way forward in 2016 for Indian Cinema particularly Bollywood. Filmmakers will look at platforms like Digital EST, i.e., Electronic Sell-through of a movie directly to consumers to counter the threat posed by piracy.

     

    :: Broadcast reach vs Online: Transformation of media trends: In the coming years, digital platform, like digital audio and video on demand service, will see increased activity, and hence getting the right business model will be very crucial for success. Instead of sitting at home and watching the broadcast on TV, the consumers prefer to go online which allow them to connect anywhere, anytime with any device.

     

    Telecommunications

    :: Used smartphones: The $1.7 billion market you may have never have heard of: India, currently the third largest market for smartphones with estimated annual sales of about 143 million units in FY 2016, is estimated to generate about $1.7 billion for its owners at an average value of about $90 in FY 2016, with outright sale or trade-in of approximately 20 million smartphones. Growing at a CAGR of about 32 per cent till 2020, the used smartphone market is forecasted to grow to about 46 million units generating an estimated $4 billion for its owners.

     

    :: The rise of the data exclusive: In 2016, 26 per cent of smartphone users in developed markets will not make any traditional phone calls in a given week. We call these individuals ‘data exclusives’. They have not stopped communicating, but are rather substituting traditional voice calls for a combination of messaging (including text messages), voice and video services delivered ‘over the top.’ Similar trends are observed in India, with voice calling falling drastically over the past 2 years since 2013. We expect this trend to continue over the next 2-3 years as operators as well as smartphone vendors push for 4G fueled by increasing availability and falling prices.

     

    :: VoLTE / VoWiFi: Capacity, reach and capability: Deloitte predicts that about 100 carriers worldwide will be offering at least one packet-based voice service at the end of 2016, double the amount year-on-year, and six times higher than at the beginning of 2015. We estimate that approximately 300 million customers will be using Voice over LTE (VoLTE) and/or Voice over WiFi (VoWiFi); double the number at the start of the year and five times higher than at the beginning of 2015. In India, with the proliferation of 4G services and new entrants choosing 4G VoLTE over traditional voice an estimated 50 million subscribers will move to 4G and hence VoLTE.