IT Industry Performance Annual Review: 2008-09
Press Conference New Delhi: July 14, 2009
The Longest
The Largest • Conducted in Top 22 cities of India.
• Tracking the Indian IT Hardware market for over 12 years.
• Findings projected to All India urban Market. •Covers a sample of 14,000 + Households 10,000 + Establishments
•Completed 24 successful rounds of the study.
• Conducted twice a year H1 FY: Apr to Sept. H2 FY: Oct to March
•
•Data is collected after the last mile
Factors in Market/customer sentiments
Complete & Accurate Profile of the buyers. Identification of key market trends and emerging segments helps in identifying market expansion opportunities. Captures changes in users perspective to give cues for innovative marketing. Gauge buying and usage behavior to give cues for product development. Accurately gauge the extent of replacement and up gradation taking place.
Accurate data A two pronged approach involving primary surveys among end user and validation of the data from vendors and channel ensure accuracy of the findings.
Equal focus on all segments Equal focus given to Household, SOHO and Establishment segment, thus giving a complete understanding of the entire marketplace.
Actionable insights Reports can be customized as per Key Business Matrices to provided the much needed actionability of the research findings.
Regular market feedback Bi-annual reports along with the quarterly channel feedback provide a regular assessment of the dynamic Indian IT hardware market. It also provides cues for necessary course correction if required.
ITOPS – Sampling & Projections
Household
Using SEC A-C household population as obtained in the National Readership Survey – the largest household survey in the country
Establishment
No framework for sampling and projection were available Thus, a new framework called Ace Grid was developed by the ITOPS team This Grid stratified the establishments by Principal activity performed at the establishment classified by number of employee.
Principal Activity defined Manufacturing/ factory/ Warehouse Office Outlets Government
No. of employees defined
< 10 employees (Small establishment) 11-50 (Medium establishments) 50 + (Large establishments)
UPS, Keyboard, Monitor LCD projectors, Webcam Scanner, Zip Drive OA (FAX, Photocopiers)
DMP IJP LJP MFD
5.Storage SAN NAS DAS
6.Software
4.Networking Products
NIC, Hubs, Modems LAN Intranet/Extranet/Internet Wi Fi
3.Peripherals
Desktop PCs Notebooks Server Thin-Client Workstation
2.Printers
1.Computing products
Packages Customized
And the findings are…..
Units
Total PC (Desktops & Notebooks) sales: 2003-2009
•
CAGR 2003-09: 17 %
•
Growth over 2007-08: - 7 % 8
Units
Total PC (Desktops & Notebooks) Quarterly sales
FY 2008-09: Sales lowest in OND 2008, sales improved in JFM by 16% (Q on Q)
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Total PC market: Regional spread 7,334,306
•
Units
2007-08
6,796,587
Units
2008-09
PC consumption in West and the East grew by 12% and 18% respectively; in North and in South it declined by 34% and 22% respectively
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Units
Notebook (including net books) sales: 2003-2009
Annual sales declined 17% compared to 2007-08; CAGR: 76%
Over 73K Net-books sold in 2008-09
H1/2008-09 accounted for 51% of the consumption, while H2 for 49%
Households accounted for 51% of the market declining 3%, Businesses accounted for 49% of the market declining 27% on an annual basis 11
Notebook
sales: City-spread
•
Notebooks are fast penetrating beyond the top 4 metros
•
Consumption in top 4 metros declined 39%, in next 4 by 19%and in rest of India by 9%. 12
Units
Notebook sales in Businesses & Households
•
Overall Notebooks market declined 17% 2008-09
•
Households accounted for 51% while Businesses accounted for 49% of the Notebook sales in 2008-09
•
Consumption in Establishments declined 27% and in Households by 3% 13
% Units
Notebook Consumption in Businesses - by employee size
•
Overall consumption in the business declined 27%
•
Consumption in large and small enterprises declined by 47% and 53% respectively, in medium enterprises it grew 27% 14
% buyers
Profile of Notebook buyers: Principal activity of the establishment
•
Sales in Establishment: H1/2008-09 accounted for 54% while H2 for 46%
•
Over 6 folds increase in Govt. consumption
•
Consumption in retail outlets grew by 42% and in factory & Office segments it declined by 54% & 46% respectively. 15
Units
Desktop sales: 2003-2009
•
Growth over 2007-08: - 4%; CAGR 2003-09: 12%
•
H1/2008-09 accounted for 55% while H2 for 45% of the desktop sales 16
Desktop Market: Share of Indian, MNC & Informal
•
Sales of MNC Brands grew by 8%
•
Consumption of Indian brands decreased 22% in absolute terms and that of assembled by 10% 17
Desktop sales: City-spread
•
Consumption in Top 4 metros increased by 5%, in next 4 it declined by 44%, while in other smaller towns it remained flat.
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Desktop sales in Businesses & Households Home
Business
6,000,000
5,490,591 5,522,167
5,000,000
Units
5,279,648
4,614,724 74%
4,000,000 3,000,000
Total DTPs
3,035,591 77%
3,632,619
75%
66%
72% 40%
2,000,000 1,000,000 23%
60%
28%
25%
26%
34%
0 2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
•
Desktop market declined by 4% over 2007-08
•
Consumption in Establishments grew by 5%; in Households it declined 18% 19
% Units
Annual Desktop sales: Business by employee size
•
Overall sales to the Business segment grew by 5%.
•
Sales to small, medium and large enterprises grew by 3%, 17% and 2% respectively. 20
% buyers
Profile of Desktop buyers: Principal activity of the establishment
•
Sales in Establishment: H1/2008-09 accounted for 59% while H2 for 41%
•
Consumption in Government grew by 35% , in retail outlets by 31% and in factory locations by 17%; Consumption declined in office locations by 1% 21
% buyers
Profile of Desktop buyers in Households by Socio-economic class
•
Households consumption: H1/2008-09 accounted for 49%, H2 for 51%; Overall consumption declined 18% over 2007-08
•
Consumption in SEC A declined by 26%, in SEC B by 19% and in SEC C it remained flat 22
Units
Server sales: 2003-2009
•
Annual sales declined: 2%; CAGR (for 6 years): 19%
23
% Units
Server sales: Business by employee size
•
Overall declined 2%
•
H1/2008-09 accounted for 61%, while H2 accounted for 39% of server sales.
•
Sales to small and medium enterprises declined by 1% and 29% respectively, however in large establishments it grew 35% 24
Server sales: City-spread
•
Consumption in Top 4 metros grew 96%,it declined 78% in next 4 cities and 4% in the other smaller towns and cities.
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Active Internet entities: March’09
’000 Units
Translates to 60 million internet users
(Entities are establishments/individual with internet connection; an entity may house/ be multiple user/s)
•
Overall entities with internet grew by 20% over March 2008
•
Businesses accounted for 28% of the entities growing 14% while Households accounted for 72% growing 22% 26
Internet penetration: March 2009 •
Internet Penetration by Town class and Socio-Economic Classification (SEC) among Top 22 Cities Business Segment Home
Internet penetration by Town class
Overall Top 4 Metros Next 4 Metros Other 8 Metros Remaining 6 Metros SEC A
Internet
penetration among households by SEC
SEC B - 19% SECSEC C - 7%
47% 52% 40% 47% 32%
24% 28% 20% 20% 14%
SEC A - 50% SEC B -
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Mode of Internet access in Businesses: March 2009
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The Market of 2007-08 Vs 2006-07
Total installs
Product
2007-09
2008-09
Total Revenue (in Rs Crores)
% Growth
2007-08
2008-09
% Growth
Computers Desktop PCs
5,522,167
5,279,648
-4%
10,216
10,325
1%
Notebooks
1,822,138
1,516,459
-17%
7,289
5,886
-19%
122,178
119,591
-2%
2,016
1,886
-6%
Servers
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The expected Market for 2009-10
Total Sales 2008-09
2009-10
% Growth
Desktops
5,279,648
5,400,000
2%
Notebooks
1,516,459
1,900,000
25%
Total PC
6,796,107
7,300,000
7%
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Thank you!
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