Another change expected is the change in geographic distribution of internet users. Currently, the top 8 metros account for 41 % of internet traffic. However, in 2015, it is expected that 37 % of the traffic will be derived from cities with a population of less than 0.5 million. Exhibit 12 shows the changing pattern and the projected patter.
Thus, it is recommended to focus on these two emerging trends and introduce smartphone applications of online e-tailing and target the customer segment in tier II and tier III cities aggressively.
Exhibit 12 Geographic Distribution of users(%)
Top 8 Metros *(%) Other Metros **(%) 0.5-1.0Million(%) Less than 0.5Million(%)
29
10 20
41
*: Top 8 Metros: Mumbai, Kolkata, Delhi, Chennai, Ahmedabad, Pune, Hyderabad, Bangalore.
**: Cities other than Top 8 Metros
29 12 21
38
30 12 21
37
2006 2007 2008 2009 2011
Source: IAMAI I Cube Report 2011
36
12 18
34
37
11 18
37
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