Smartphone Consumers In India Benefit By Rs. 6 For Every Rs. 1 They Spend: Vivo Study
Vivo India conducted a survey to determine the “Economic Value of a Smartphone” in the second edition of its India Impact Report 2022.
Smartphones have changed the way we live in ways that were unimaginable just a few years ago. Aside from connecting with people, we can use it to do everything from flip a switch in the house to pay utility bills. Mobile phones provide a sense of connection and belonging and have become an invaluable tool for budgeting and financial management. Numerous apps help users track their expenses and save money. Therefore, a smartphone has undeniable emotional, social and economic value. Vivo India conducted a survey to determine the “Economic Value of a Smartphone” in the second edition of its India Impact Report 2022.
Conducted in collaboration with Techarc, the study sheds light on how smartphone consumers use their smartphones to pay utility bills and to purchase, store or rent goods and services. It has been found that the economic benefit for smartphone consumers in India is 6.1 times higher for every dollar they own a smartphone. Economic value was calculated by comparing the total cost of ownership (smartphone cost + service cost) to the benefits of owning a smartphone.
The study also states that the economic value of smartphones is 50% higher for India's wealthy than for the middle class. This means that the middle class (family income of 5,000 to 30,000 per year) gets 10.1 times the economic value of mobile phones. Although this represents less than half the economic value of smartphones for the wealthy (22.5 times), its importance is significant given its size and the speed at which it is growing. This lays the foundation for a strong digital landscape in the country, where people will be involved in diverse economic activities.
Jitaj Channa, Head of Corporate Strategy at Vivo India, said: “Internet-enabled smartphones have become an important catalyst for the country's socio-economic growth. They have changed the way we live in ways that were unthinkable just a few years ago. Beyond that.” Because of connectivity, people and smartphones have become an indispensable part. Integral part of our life, business or personal use, to taxi booking, grocery shopping, financial management, etc. Due to the different needs and preferences of consumers in different cities, the sole purpose of this survey's objective was to make the benefits of smartphones more accurate to scrutinize. We are excited to be one of the catalysts for this changing lifestyle that creates value for users and has a positive impact on the environment.
The study also clarifies the economic value that the customer derives from the various digital activities they carry out on their phones. It said reservation and shopping services were the most profitable with a return on investment of 8x, grocery shopping 7.9x, utility bills and grocery shopping 7.6x, basic necessities 7.4x, and digital cash 6.9x. . The affluent sector is the largest contributor to digital services, including booking travel tickets, hiring professional services and booking taxis.
The average EV for adults aged 41 to 60 is 7.7, compared to 7.6 for the youngest (25 to 40). The economic value of young adults between the ages of 18 and 24 is now 5.5. The average economic value was 7.6 in metropolitan and 6.2 in non-metropolitan.
The study also found that the economic value of smartphones is close to that of major cities (7.6 times) and non-metropolitan cities (6.2 times). This means that the digital landscape is developing differently in the individual cities, which hardly brings any advantages for the metropolises.
The study surveyed a diverse sample of 1000 mobile phone users in 14 urban and suburban cities including Ahmedabad, Bengaluru, Chandigarh, Chennai, Delhi NCR, Hyderabad, Jaipur, Kanpur, Kolkata, Lucknow, Mumbai, Nagpur, Pune and Surat. Respondents included entrepreneurs, professionals, corporate employees, government employees, students and housewives aged between 18 and 60. 62% of the men and 38% of the women took part. Respondents were then categorized by location, with 58% being urban and 42% non-urban.