smart speakers - denave · delhi ncr • south delhi shines bright with gurugram closely competing...

SMART SPEAKERSINDIA MARKET ANALYSIS

#DenaveInsights Denave Smart Speaker India Report©Denave2018

TABLE OF CONTENTS


1. The Scope…………………………………………………….……………………...Page 3

2. Objective…………………………………………………….…………………..…...Page 4

3. Introduction…………………………………………………….…………………...Page 5

4. Executive Summary ……………………………………………………………..Page 6

5. Industry Landscape……………….……………………………………………...Page 7-9

i. Factors responsible for driving the market up and ahead

ii. Factors responsible for inhibiting the growth and impacting

adoption

6. Key Findings of the Survey……………………………………………………Page 10-17

i. User profile dissection

ii. Buying reasons’ analysis

iii. Pricing dynamics

iv. Geographic pulse

v. Top selling regions’ analysis

7. Conclusion…………..………………………………………………………….……Page 18-19

THE SCOPEDenave conducted a nation-wide internal survey, capturing consumer

sentiments as well as store performances to analyse the state of smart speaker market in the Indian landscape.

18 states – 36 Cities – 400+ stores – 20,000+ In-store purchases

Timeframe: April 2018 - October 2018


OBJECTIVEThe key objective of the survey was to study the Indian market sentiment in face

of the rising global trend around smart speaker penetration into households.

Understanding overall adoption trends, thus predicting future investments or

revenue generation expectation for the industry players was the macro goal of

the study. On the micro side, dissecting the consumer usage patterns and thus

understanding actual ‘selling points’ for the segment formed the essential

pillars of the report.

The statistics and percentages have been rounded off at certain places for ease

of comprehension.

©Denave2018 #DenaveInsights Denave Smart Speaker India Report

This report is an outcome of Denave’s wide-ranging service offerings

including Intelligent Database Management, Sales Analytics, Retail Analytics,

Field Sales & Marketing amongst others, that provides us a window to

unique sales insights across our multi-industry customer portfolio. In the

process of creating insight-driven sales methodologies, we have been able to

secure insights across industries and product segments, one of which is

being showcased through this report.


Automation, as a concept is cracking

the glass ceilings not just in the

industrial domain but at home front

too. With exponential progression in

IoT along with deepening of tech

integration sciences, home automation

market has taken off on a brilliant

note.

INTRODUCTION

Amidst other elements which come under the umbrella of home automation,

smart speaker or voice-controlled speaker segment is one which has picked

up a good pace in a short span of time – promising a bright and intelligent

future for the household automation market in India.

EXECUTIVE SUMMARYBelow are the key takeaways of the survey:

• Buyer persona presents a more homogeneous mix instead of a

heterogeneous one when it comes to consumer analysis by gender.

• The market currently sports a skew with the metros driving the majority of

sales while the rest of the country is still discovering smart speakers.

• Unlike the global market scenario where the usage has also evolved along

with the consumer, Indian buyers’ usage of the smart device is driven

primarily by lifestyle and hobby related tasks.

• Lifestyle upgrade also features as one of the underlying reasons for

majority of the purchases.

• Large Format Retail (LFR) stores emerge as the preferred ground for

consumers in comparison to multi-branded outlets (MBOs).


The industry reaction to the increasing popularity of smart speakers can be

understood from varied perspectives. In comparison to the whole scheme of

things or with already established tech gadget markets, the statistics for

smart speaker adoption may still seem negligible, however, in the larger

perspective, the rate of growth in the given time frame has raised the hopes

high for retailers and manufacturers.

On the global scale, while North America may be leading the smart-tech race

with the largest number of consumers globally, Europe and APAC remain

quite at loggerheads, vying with one another for the second largest

consumer tag in the realm of smart speakers.

The population edge and the rise in the aspirational quotient with improving

economies can be termed as the key drivers for APAC where India along with

China make for a winning case for all major players in the space. India being a

critical and leading component of Asian market and a major name in the

developing APAC economies, boasts of a prolific and priority opportunity

ground given its demographic dividend.

#DenaveInsights Denave Smart Speaker India Report

INDUSTRY LANDSCAPE

©Denave2018

Despite the new-found enthusiasm among the Indian consumers for

home-tech, the market spells many crests and troughs. Quite naturally, a vast

population and diversity equals to varied lifestyles and thus, adoption trends.

However, the overall picture still seems positive and upbeat.

Let’s look at the catalysts that have pushed forward the growth or pulled back

the strings on market penetration for smart speakers and have defined the

current market landscape:

Factors responsible for driving the market up and ahead:

• Advancements in IoT and subsequent tech integration

• Augmented penetration of smart phones and smart devices

• Rise in disposable incomes and aspirational lifestyle quotient

• Unsurpassed product innovation

• Enhancements in wireless technology

• Advancement in audio technology

• Increase in the number of smart homes


Factors responsible for inhibiting the growth and impacting the

adoption:

• Lack of geo-specific content ecosystem customisation

• Insufficient demography specific language and accent support

• Cost (while reducing gradually, still doesn’t make it a generic household

entrée)

• People find their smartphones to have sufficient functionalities

• Privacy invasion threats

• Multi-device compatibility related complexities


User Profile Dissection

Who is the most Tech Savvy?

• Around 75% men & 25% women buy smart speakers

• Both men and women in the age-group of 25-35 years are the top users

of smart speakers at 66% & 58% respectively

• In 35-50 years age group, 32% of women use smart speakers vis-à-vis

25% men

• In the age group of 25-35 years, men lead the buyer category for smart

speakers while it is women who lead the space in the age group of 35-50

years.

KEY FINDINGS OF THE SURVEY

Buyer Profile


Sample data representative of metro cities and store purchases only

Reasons to Buy

Music Plays on the Mind

• Playing music with ease tops the reason for smart speakers’ sales

• Both men and women vie for smart speakers’ usage, primarily for playing

music

• DJ avatar of smart speakers have more takers compared to other avatars,

that of voice assistant, day management, smart video streaming across

devices, checking news update, and controlling home products in that order


Playing Music35.3%

Voice Search17.8%

No Reason given12.7%

Manage your day12.5%

News Update9.5%

Video Streaming 9.3%

Control your home 2.1%


Price Matters

Affordability and Affordable Luxuries

• At 78%, the sale of economical category of smart speakers exceed the

premium category sale which stands at 22%

Geographic PulsePurchase split across states



Delhi Leads the Way• It’s NCR vs rest of India! – At 28%, Delhi rallies ahead of other cities in its

purchase numbers

• Bengaluru, true to its silicon city tag, features among top 3 cities

contributing to the sale of smart speakers at 15% while Mumbai leaps

ahead at 27%

• While Delhi, Mumbai & Bangalore together contributes to 70% of smart

speaker sale in India, Tier 2 cities also observe high footfall conversion rate

indicating that metro cities are shopping for the segment more through the

online channel

LFR stores are more popular among buyers, contributing 61% to the total sale of

the product segment, thus, validating the impact of variety offering on sales.


Contribution from Top 3

cities

70%

Delhi 28%

Mumbai 27%

Bengaluru 15%

Top 3 Cities: 70% | Rest: 30%

LFR Category stores contribute to 61% of Total Product Sale.


Scrutinizing Top Scorers

Delhi NCR

• South Delhi shines bright with Gurugram closely competing for the top

sales-ranking spot in Delhi-NCR.

• South Delhi rings the cash registers with 23.1% contribution in overall

sales, followed by Gurugram and West Delhi localities contributing 22.61%

and 22.03% respectively.

• East Delhi, Ghaziabad and Faridabad markets are still waking up to the

trend and contribute least to the market while North Delhi and Noida

markets are still half-way in catching up with the star performers.


South Delhi 23.17%

Gurgaon 22.61%

West Delhi 22.03%

North Delhi 10.83%

Noida 10.54%

Ghaziabad 5.71%

Faridabad 4.78%

East Delhi 0.33%

DELHI



Mumbai

• Market pulse shines the brightest in the western region of the city which

comprises of 59.31% smart speaker sales in the Mumbai region.

• Rest of Mumbai is still far behind in terms of consumer evolution as East

Mumbai contributes 20.61% worth of sales while the least bell is rung by

the Northern region with 2.53% contribution.


West Mumbai 59.31%

East Mumbai 20.61%

Navi Mumbai 9.72%

South Mumbai 7.83%

North Mumbai 2.53%MUMBAI



Bengaluru

• East Bengaluru tops the chart in the state for its maximum consumer

enthusiasm by contributing 43.82% sales and it is closely followed by

South Bengaluru which stands at 41.06%.

• West Bengaluru and North Bengaluru still have a long way to go given

their least contribution in the overall ratings with 9.96% and 5.16%

respectively.


East Bengaluru 43.82%

South Bengaluru 41.06%

West Bengaluru 9.96%

North Bengaluru 5.16%BENGALURU


While the market may still be categorised to be in a nascent stage in comparison

to its global counterparts, however, the growth rate and demographic dividend

presents immense market opportunities.

In line with the survey, smart speakers are penetrating Indian homes in a

significant way now, emerging as a lifestyle choice. Metro cities are driving the

adoption brigade while the tier 2 cities are not completely negating the trend

and showcasing interest in the product category with aspirational quotient

powering the purchases. Usage trend expansion is also expected beyond the

entertainment category. In due course of time, the growing consumption of

smart speakers in India may become a key driver for propelling the trend of

connected and interactive homes experience.

Developments in the domain of natural language processing, increasing support

for regional language and accent integration etc. will further aid the penetration.

Other tech-platform metrics which can become a huge push for snowballing the

sales are greater cross-device compatibility and interoperability. Less focus on

platform lock-in will also generate a lot of traction not just among consumers

but brands as well who’d be looking to expand their portfolios to fit in the varied

price-usage matrix.

CONCLUSION


In totality, from the global lens, India remains a hot market for the product

category given the geo-specific customisations become more pronounced and

usage patterns are taken into consideration for planning the marketing and

sales strategy. Also, a strengthened customer service, both – during and post

sales will also act as differentiator when it comes to brand/player preferences

by the consumer populace.

For more sales insights, visit

www.denave.com/resources


Denave is a global sales tech organization focused on revenue maximization

for its customers. The company leverages latest technologies and disruptive

approach to create robust sales engines – one that focuses on providing last

mile visibility, as well as enables informed decision-making. Through the

wide range of end-to-end sales enablement offerings, Denave has reach

across 5 continents, 50+ countries and 500+ cities globally.

smart speakers - denave · delhi ncr • south delhi shines bright with gurugram closely competing...

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