Prepared for
Prepared by
About ITOPS…
An Introduction
Only Demand-Side
Study on the Indian
IT Hardware market
01
02
Industry Validation
of the Market
Figures
ITOPS
Largest Tracker
Study on the Indian
IT Hardware market
04
03
Longest Running
Tracker Study on the
Indian IT Hardware
market
Only Demand-Side Study on Indian IT Hardware Market…
Designed to deliver the much needed demand-side insights
Data is collected
after ‘Last Mile’
• No undercounting/over
counting stock in pipeline
• Includes direct imports by
customers
• Accurate estimation of
assembled market
Accurate assessment
of Buyer Profile
• “Who bought”, “Where used”…Not
dependent on ‘perceptions’ of
reseller/ channel member/ vendor
Identification of
Emerging Segments
Market/ Customer
Sentiments
• Factors in the market/ customer
sentiments and opinion along
with industry level indicators
• Need to monitor changes in user’s
perspective to obtain cues for
innovative marketing
Identify and observe
Market Trends
Largest Study on Indian IT Hardware Market…
Coverage of 35 Cities in Household segment and 22 cities in
Establishment segment
8500+
Estabs
19,500+
Households
28,000+
Entities
•
The Study covers a sample of around 28,000 + entities
•
The study is conducted on an annual basis
•
… across 35 cities of India for the household segment
– Representation of entire urban India
•
… across 22 cities of India for the household segment
– Greater than 0.2 Million Pop Towns
Industry Validation…
Two Pronged Validation Process
Validation
MAIT
Findings on
Market-size
projected to
All - India
Urban market
Various
IT Players
Validation
•
The findings from ITOPS is accepted as the official market performance of Indian IT
hardware market by Manufacturers Association for Information Technology (MAIT), the
nodal body for IT hardware industry in India.
•
Information used by Govt. of India for all IT & allied planning.
ITOPS Advantage…
The cutting edge
Accurate, Relevant & Timely Knowledge
 A two-pronged approach involving primary route among end-users and validation of this data from the
vendors and the channel ensures accuracy of the data
 Also, with data for more than eleven consecutive years, the study is now able to plot the trends to show
the future direction
Regular Market Feedback
 Bi-annual reports provide the performance and trends of the preceding half year
 Quarterly channel reports provide mid quarter check on the performance and the need for course
correction required if any
Customization to meet needs
 Specific question (s) or rider questionnaire (s) can be incorporated as per client’s requirement to test out
hypotheses in the dynamic changing business environment
 Also, the report could also be customized based on client’s requirement of product & information
coverage
Continuous & Holistic Support
 ITOPS is a continuous relationship. Analysts and consultants from the eTechnology Group @ IMRB would
be available for answering any query, drill-downs, special analysis etc that client may need to internalize
the findings from ITOPS
Sampling Methodology…
Households
Households
and Home Offices
SEC A
SEC B
SEC C
SEC D
SEC E
Random Sample of SEC A, SEC B, SEC C , SEC D/E Households in each city
Home Office
Pure Household
Based on Occupation of the CWE
Employed by Others
Universe Estimation of
SEC A, SEC B & SEC C HH
Self-Employed
National Readership Survey
Sampling Methodology…
Establishments
Businesses owning at least
One telephone line
Small
Medium
Large
Manufacturing
Office
Outlet
Government
Random Sample Across ACE* Grid
Industry Vertical
Universe of Estimation
Type of Establishment
Based on ITOPS Universe Estimation Frame
work
*ACE- Principal Activity carried out at the respective establishment Classified by Employee Size
ANNUAL ROUND-UP
ON IT HARDWARE
INDUSTRY
PC MARKET SLOWING
DOWN, GREW ONLY BY
5%
Missed MAIT forecast by 1.1 million
SALES OF PC YEAR-ON-YEAR- ALL INDIA , URBAN
+05%
12
+16%
Sale of PC (in million units)
10
9.31
8.03
8
7.34
6.80
6.34
6
11.31
10.82
5.05
4
2
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
Year
* CAGR growth – Growth of 2011-12 over 2005-06
12
NOTEBOOKS
CONTINUES TO PUSH
UP THE PC SALES
NOTEBOOK CONSTANTLY OUTPERFORMING DESKTOP PC OVER THE YEARS
Overall sales (in million)
SALES OF PC , ALL INDIA , URBAN
+05%
+16%
Sale of PC (in million units)
12
9.31
10
8.03
7.34
8
6
4
2
11.17
10.73
6.34
5.05
6.80
4.02
4.40
2.51
1.82
1.52
5.49
5.52
5.28
5.53
6.03
6.71
6.77
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
0.85
Notebook
3.28
0.43
4.61
Desktop PC
0
2005-06
Year
Growth
Desktop PC
Notebook
2012-13 over 2011-12
+01%
2011-12 over 2010-11
+11%
2010-11 over 2009-10
+09%
CAGR GROWTH*
+06%
+16%
+22%
+31%
+45%
* CAGR growth – Growth of 2011-12 over 2005-06
14
REST OF INDIA
CONTINUES TO MARCH
AHEAD IN PC SALES
Its the only market where overall Desktop PC sales
has witnessed a growth
REST OF INDIA CONTRIBUTION IS ON THE RISE FOR THE 3RD CONSECUTIVE YEAR
Overall sales (in million)
SALES OF PC, BY TOWN CLASS, ALL INDIA , URBAN
+05%
+16%
Overall sales
(in million)
5.05
6.34
33%
32%
7.34
6.80
23%
25%
8.03
9.31
10.82
11.31
31%
30%
28%
28%
8%
13%
13%
12%
Sale of PC – by Town class
(in %)
100%
75%
12%
13%
Top 4 cities
7%
8%
50%
25%
Next 4 cities
54%
60%
65%
68%
61%
57%
59%
60%
Rest of India
0%
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
Year
16
HH SEGMENT DID
SLOW DOWN BUT
GREW IMPRESSIVELY
HH SEGMENT IS DRIVING PC SALES CONTRIBUTING AROUND 60% OF THE
MARKET
Overall sales (in million)
SALES OF PC, ALL INDIA , URBAN
+05%
+16%
12
11.31
10.82
9.31
10
Sale of PC (in million units)
8.03
Household
7.34
8
6.80
6.34
6
5.05
1.72
5.87
6.79
4.87
2.98
3.73
2.55
0.43
4
2
4.61
4.62
4.37
2005-06
2006-07
2007-08
Establishment
4.24
4.32
4.44
4.86
4.52
2008-09
2009-10
2010-11
2011-12
2012-13
0
Year
18
DESKTOP SEEMS TO BE MORE RELEVANT FOR HOUSEHOLD
SALES OF DESKTOP PC, ALL INDIA – URBAN
6.71
Sale of Desktop PC (in
million units)
7
6.77
6.03
5.49
5.52
5.53
5.28
4.61
5
4
+01%
+11%
8
6
Overall sales (in million)
1.41
1.14
Household
3.54
4.02
2.18
1.78
2.32
3.01
3.34
3.50
3.21
3.02
3.17
2.75
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
3
2
3.47
4.08
1
0
2005-06
2006-07
Year
Growth
Household
Businesses
2012-13 over 2011-12
+14%
+17%
+30%
-13%
2011-12 over 2010-11
2010-11 over 2009-10
* CAGR growth – Growth of 2011-12 over 2005-06
+05%
-06%
19
Businesses
NOTEBOOK GROWTH IN BUSINESSES HAS BEEN DECLERATED
BUT IT HAS EXHIBITED POSITIVE GROWTH OVER THE YEARS
SALES OF NOTEBOOK PC , ALL INDIA – URBAN
Overall sales (in million)
+10%
5
+22%
5
4.02
Sale of Desktop PC (in
million units)
4
4
3.28
3
2.53
3
1.82
2
1
0
0.85
0.43
0.79
2.67
2.33
1.41
0.77
0.06
0.38
0.32
0.53
1.03
0.75
2005-06
2006-07
2007-08
2008-09
1.12
2009-10
1.42
1.69
1.73
2010-11
2011-12
2012-13
Year
Growth
Household
Businesses
2012-13 over 2011-12
+14%
+26%
+32%
+03%
2011-12 over 2010-11
2010-11 over 2009-10
Household
1.86
1.52
2
1
4.40
* CAGR growth – Growth of 2011-12 over 2005-06
+18%
+27%
20
Businesses
SEC C HAS BECOME AN
ESTABLISHED PC
DRIVER
Posted a growth of 67%
WHILE DESKTOP GROWTH IS MUTED IN SEC A AND B , SEC C
CONTINUES TO SHOW UP ITS GOOD PERFOMANCE
SALES OF DESKTOP PC, HH, ALL INDIA – URBAN
Overall sales (in million)
+14%
+17%
Overall sales
(in million)
2.18
1.78
18%
22%
2.32
3.01
3.53
4.02
29%
30%
36%
42%
34%
27%
100%
Desktop PC –
HH – SEC wise (in %)
80%
39%
60%
39%
42%
39%
30%
31%
30%
31%
2009-10
2010-11
2011-12
2012-13
40%
43%
20%
SEC C
39%
SEC B
SEC A
0%
2007-08
2008-09
Year
Growth
SEC A
SEC B
SEC C
2012-13 over 2011-12
+18%
-09%
2011-12 over 2010-11
+14%
+02%
2010-11 over 2009-10
+34%
+24%
+31%
+41%
+34%
22
A POSITIVE GROWTH IS EXHIBITED ALL ACROSS SEC BUT SEC
C LEADS THE PACK
SALES OF NOTEBOOK PC, HH, ALL INDIA – URBAN
Overall sales (in million)
+26%
Overall sales
(in million)
100%
Notebook PC –
HH – SEC wise (in %)
0.79
0.77
1.41
1.86
2.33
5%
9%
8%
12%
18%
26%
80%
+14%
2.67
31%
18%
32%
SEC C
32%
37%
60%
33%
40%
69%
SEC B
73%
59%
56%
20%
45%
38%
SEC A
0%
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
Year
Growth
SEC A
SEC B
SEC C
2012-13 over 2011-12
+01%
+05%
2011-12 over 2010-11
+01%
+45%
2010-11 over 2009-10
+25%
+32%
+90%
+88%
+76%
23
SMB AND GOVT
SEGMENT HAS
REBOUND FROM THE
SLUMP
CONTRIBUTED MAINLY BY DESKTOP PC
SME CONTRIBUTION HAS INCREASED THIS YEAR FOR DESKTOP
PC
SALES OF DESKTOP PC, BUSINESSES, ALL INDIA – URBAN
Overall sales (in million)
-13%
+05%
Overall sales
(in million)
3.47
4.08
3.34
3.21
3.50
3.02
3.17
2.75
-53%
Desktop PC - Businesses (in %)
100%
80%
33%
43%
48%
57%
55%
57%
70%
60%
Large
62%
+49%
40%
52%
20%
67%
57%
43%
45%
2007-08
2008-09
43%
38%
2010-11
2011-12
30%
SME
0%
2005-06
2006-07
2009-10
2012-13
Year
CAGR GROWTH – SME +07%
CAGR GROWTH – LARGE -17%
25
A DECENT POSITIVE GROWTH IS EXHIBITED BY BOTH SEGMENT
IN NOTEBOOK SEGMENT
SALES OF NOTEBOOK PC, BUSINESSES, ALL INDIA – URBAN
Overall sales (in million)
+04%
+19%
Overall sales
(in million)
0.28
0.53
1.03
1.12
0.75
1.42
1.69
1.73
+03%
Desktop PC - Businesses (in %)
100%
80%
32%
47%
43%
44%
56%
37%
39%
54%
Large
+07%
60%
40%
68%
53%
20%
57%
56%
44%
60%
63%
46%
SME
0%
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
Year
CAGR GROWTH – SME +30%
CAGR GROWTH – LARGE +14%
26
GOVT. SEGMENT SURGED IN DESKTOP SALES
Overall sales (in million)
SALES OF NOTEBOOK PC, BUSINESSES, ALL INDIA – URBAN
+05%
+19%
Overall sales
(in million)
0.28
0.53
1.03
0.75
1.12
1.42
1.69
1.73
+38%
1%
100%
9%
1%
6%
1%
2%
7%
5%
20%
12%
16%
1%
10%
3%
11%
Govt. Locations
80%
Notebook PC - Businesses
(in %)
13%
60%
Outlets
81%
88%
84%
82%
40%
74%
83%
77%
Office locations
62%
20%
Factory locations
0%
10%
2005-06
5%
8%
5%
2006-07
2007-08
2008-09
1%
2009-10
9%
6%
8%
2010-11
2011-12
2012-13
Year
27
LJP IS BECOMING THE
DE-FACTO PRINTER
LJP is the sole positive contributor
WHILE LJP SALES IS INCHING UP ,DMP SALES SEEMS TO BE
DIPPING AWAY
SALES OF PRINTER, ALL INDIA – URBAN
4
-01%
-05%
3.13
3
Printer sales , All India ,
Units (in million)
Overall sales (in million)
2.97
2.93
Laser printer
2.50
1.39
2
1
0
1.51
1.49
1.60
1.62
0.33
0.44
0.44
0.47
0.72
0.78
1.57
Inkjet printer
1.14
0.61
1.38
0.97
1.36
1.19
1.08
0.75
Dot Matrix Printer
0.47
0.44
0.37
0.39
0.38
0.38
0.39
0.27
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
Year
Growth
DMP
IJP
LJP
2012-13 over 2011-12
0%
19%
2011-12 over 2010-11
2%
-12%
2010-11 over 2009-10
-30%
-9%
43%
0%
14%
29
TABLET PC IS SHOWING
A PHENOMENAL
GROWTH FOR SECOND
CONSECUTIVE YEAR
TABLET PC SURGED IN GROWTH AND AROUND 1/5TH OF TABLET
OWNERS OWN ONLY TABLET PC
SALES OF TABLET PC, ALL INDIA – URBAN
+424%
Sale of Tablet
(in million units)
2
1.5
+284%
1
1.90
Tablet PC sales
0.5
0
0.36
0.09
2010-11
2011-12
2012-13
Year
TABLET OWNER AS
21%
PC OWNER
45%
29%
05%
PC OWNER +
SMARTPHONE OWNER
ONLY TABLET
SMARTPHONE OWNER
31
CONSUMERS PREFERENCE SEEMS TO BE TILTING FROM PC TO
TABLET
SALES OF PC AND PRINTER, ALL INDIA – URBAN
13.5
Sale (in million units)
13
12.5
0.62
Tablet
1.9
12
11.5
11
12.37
PC
11.17
10.5
10
Projected sales
Product category
Actual sales
Projected sales
Actual sales
In million
Difference
In million
PC
12.37
11.17
Tablet
0.62
1.90
PC + Tablet
12.99
13.07
-1.2
+1.28
+0.08
32
SERVER MARKET FELL
BUT THE DECLINE WAS
LOWER THAN
BUSINESSES PC SALES
SERVER SALES, ALL INDIA,URBAN
0.14
0.12
0.1
Server sales , units
(in million)
-02%
+04%
0.08
0.12
0.06
0.04
0.09
0.09
2005-06
2006-07
0.12
0.10
0.09
0.09
0.09
2010-11
2011-12
2012-13
0.02
0
2007-08
2008-09
2009-10
Town class
Growth of 2012-13 over 2011-12
PC - Businesses
- 08%
Server
- 02%
* CAGR growth – Growth of 2011-12 over 2005-06
34
UPS SALES IS DRIVEN
SOLELY BASED ON HH
PC GROWTH
UPS SALES, ALL INDIA,URBAN
-01%
3
UPS sales , units
(in million)
2
1
2.17
1.62
1.52
2007-08
2008-09
2.32
2.38
2009-10
2010-11
2.55
2.53
2011-12
2012-13
0
2006-07
Growth
Household
Businesses
2012-13 over 2011-12
+04%
+06%
+10%
-01%
2011-12 over 2010-11
2010-11 over 2009-10
+11%
-15%
36
WHAT LIES IN FUTURE
FORECAST, ALL INDIA,URBAN
2013-14
2012-13
% Growth
6.99
6.77
+03%
5.12
4.40
+16%
38
FORECAST, ALL INDIA,URBAN
2013-14
2012-13
% Growth
0.19
0.27
-30%
1.05
1.08
-03%
1.82
1.57
+22%
39
THANK YOU
40