market research report : e-book market in india 2012

E‐books Market in India

December 2012

2E‐BOOKS MARKET IN INDIA 2012.PPT

SAMPLE

Executive Summary

Market

E‐book has been a known phenomenon in the global platform for quite some years and is posting a healthy growthE‐books market in India is still in its nascent stage but is slated to see good growth in the coming 1‐2 yearsE‐books can be categorized into x1, x2 and x3

Drivers & Challenges

Competition

Drivers–Growth in education– Increase in internet users–Demographical alterations– Increase of internet enabled computing devices

– Improvised content–Publishers save costs in this format

Challenges–Negative consumer perspective related to cyber security & piracy

–High prices of e‐book readers

–Majority focus on academic text books

–Lack of touch and feel element

Major Players

Company 1 Company 2 Company 3

Company 4 Company 5 Company 6

Application approval from AppleRetail chain offering e‐book reading applicationDrive to convert books into digital formatsForeign giant setting stores in India

Trends

Technological add‐ons Digital rights managementSports category emerges as a thriving option


•Introduction•Market Overview•Benefits •Market Highlights•Formats & Software•Drivers & Challenges•Government Regulations•Trends•Major Players•Strategic Recommendation•Appendix


SAMPLE Though nascent, the market is slated to usher in a positive change in the coming 1‐2 years

E‐books – Indian Market Overview

• The Indian market for e‐book buyers forms the second largest e‐books market in the world

• India is considered to be having a huge potential owing to a burgeoning middle class that speaks English aided with an increasing disposable income

• Additionally, as Indian e‐publishers are producing content for Indian consumers, global e‐publishers have started outsourcing their e‐publishing services to Indian firms

• Advantages associated with e‐books in the form of easy portability, multiple storage, linked‐in browser devices along with added features like magnifying capability have been responsible for its rapid adoption amongst youth fraternity

E‐books – Market Size & Growth

E‐books – Market Segmentation (2011)

b6

b4

b5

Segment 4

Segment 5

Segment 3

b1%Units No

a4

2016e

0

a6

2015e

a5

2014e2013e

a3

2012e

a2

2011

a1

E‐books – Geographic Segmentation (2011)

b2

b3

Segment 2

Segment 1

Note: This market size refers to the text e‐book market


SAMPLE

•Under the agency pricing model, retailers act as agents and take t11 while leave the remaining t12 to the publisher

•The comparative analysis shows that even though retail price of e‐books cost lesser than their printed counterparts, the payments made to different heads are also less which makes the end revenues generated by the publisher is more than the physical books

Print Book v/s E‐book

E‐book

Print Book

Retail Price per book

Paid to retailerRoyalty

payment to author

t1 t2

t7

t4

t5 t6

t3

t8

t9

t10

Others

Note: xxxxxxxxxx


SAMPLE

Religious Book Trade – Revenues Children Book Trade – Revenues

E‐book – Global Snapshots (1/2)

Total Trade – Revenues Adult Book Trade – Revenues

INR bn

0

q1

p1

YTD 2012

p2

2011

INR bn

0

q2

p3

YTD 2012

p4

2011

INR bn

0

q3

p5

YTD 2012

p6

2011

0

INR bnp8

q4

YTD 20122011

p7


SAMPLE

Digital Revenues – Global Snapshots (2/2)

Publisher

Earnings Period

Book Publishing Revenues

Digital as %age of total book sales

y

y1

y2

… as a part of the total book publishing revenues earned by majors

y3 y4

z

z1

z2


Drivers & Challenges – Summary

Drivers

Growth in education

Increase in internet users

Demographical alterations

Increase of internet enabled computing devices

Improvised content

Publishers save costs in this format

Challenges

Negative consumer perspective related to cyber security & piracy

High prices of e‐book readers

Majority focus on academic text books

Lack of touch and feel element


SAMPLE

E‐books will penetrate proportionately with the rise in internet penetration and its users

Increase in internet users Impact•The ever increasing figure of internet users in India is considered to be one of the key drivers for this market

• Internet is the primary means of accessing e‐books which is sure to derive its growth as the penetration of the same deepens

•As internet penetrates deeper into different strata of the society, accessibility to e‐books increases profoundly

•This is specific to e‐books that are not restricted to any device or software and can be accessed only through any application or hardware supporting DRM content

e2

2012e20112010

e3e1

mn

0

e5e7

2015e

e6

2014e2013e

e4

Total Internet Subscribers – India Number of Broadband Subscribers – India

2012e

d5

mn

d10d9

2014e

d8

d7d4 d6

2015e

0

2013e

d3

2011

d2

d1

Urban SubscribersRural Subscribers


SAMPLE Impact of FDI cap on e‐tailing firms

f10

f13

f12

f15

f4 f6

f1 f3

f9f7

f2

f5

f8

f11

f14

Category Example Impact


`

Application approval from Apple

Retail chain offering e‐book reading application

Sports category emerges as a thriving option

Drive to convert books into digital formats

Trends – Summary

Key Trends

Technological add‐ons

Digital rights management

Foreign giant setting stores in India


SAMPLE Approval from majors open gates for device manufacturers to feature e‐books on their devices

• A recent development in this sector is that of e‐book reader concern Sony getting Apple approval for an iOS Reader application

• This means that Sony Reader customers can read their Sony e‐books on an iPhone, iPad, iPod Touch• Though Sony remained absent form the app circle compared to Kindle app, Barnes & Noble Nook app, but its recent inclusion in the Apple App Store brings cheer to its readers

Application approval from Apple

•Sony has launched ‘Reader for your iPhone,

iPad and iPod’

•The Sony Reader iOS app is powered by

Bluefire Reader which has its own app in the

App Store

•This will enable the consumers to even read

book on their iPhones

xxx

xxx

xxx

xxx

xxx

xxx

Features

TREND


SAMPLE Private: Foreign Company – Company 1 (1/3)

Key People

Products and Services

Company Information Offices and Centres – India

Corporate Address

Tel No.

Website

Year of Incorporation

Category Products/Services

Publishing Print & Digital

Name Designation

Note: The list of products and services is not exhaustive

New Delhi

Head Office


SAMPLE Financial Snapshot Key Ratios

Financial Summary

• The company incurred a net profit of INR ‐mn in FY 2011, as compared to net profit of INR ‐mn in FY 2010

• The company did not earn any operating margin in FY 2011

• The company did not earn any debt to equity ratio in FY 2011

Improved Decline

Particulars y‐o‐y change (2011‐10)

2011 2010 2009 2008

Profitability RatiosOperating Margin N.A. N.A. N.A. 7.25% ‐6.25%

Net Margin N.A. N.A. N.A. 6.81% ‐7.82%

Profit Before Tax Margin N.A. N.A. N.A. 8.14% ‐4.43%

Return on Equity ‐8.63 25.25% 33.88% 19.27% ‐28.40%

Return on Capital Employed N.A. N.A. N.A. ‐23.78% 556.91%

Return on Working Capital ‐9.57 31.68% 41.25% 22.28% ‐30.59%

Return on Assets ‐8.63 25.25% 33.88% 19.27% ‐28.40%

Return on Fixed Assets ‐278.38 461.59% 739.97% 293.86% ‐397.26%

Cost RatiosOperating costs (% of Sales) N.A. N.A. N.A. 92.68% 106.37%

Administration costs (% of Sales)

N.A. N.A. N.A. N.A. N.A.

Interest costs (% of Sales) N.A. N.A. N.A. N.A. N.A.

Liquidity RatiosCurrent Ratio 4.99% 2.11 2.01 1.46 1.89

Cash Ratio 60.38% 0.41 0.26 0.30 0.38

Leverage RatiosDebt to Equity Ratio N.A. N.A. N.A. N.A. N.A.

Debt to Capital Ratio N.A. N.A. N.A. N.A. N.A.

Interest Coverage Ratio N.A. N.A. N.A. N.A. N.A.

Efficiency RatiosFixed Asset Turnover N.A. N.A. N.A. 42.74 49.85

Asset Turnover N.A. N.A. N.A. 2.80 3.56

Current Asset Turnover N.A. N.A. N.A. 1.03 1.81

Working Capital Turnover N.A. N.A. N.A. 3.24 3.84

Capital Employed Turnover N.A. N.A. N.A. 2.80 3.56

2008

uINR mn INR mn

0

201120102009

v

Net Profit/LossTotal Income

Private: Foreign Company – Company 1 (2/3)


SAMPLE

Business Highlights

Description News

Overview

• Is known as the provider of learning solutions to higher education, professional, library

reference and school markets in the Indian sub‐continent

• The company has ‐ employees and has operations in more than ‐ countries across the

globe

E‐books

• Z1 is a suite of digital products and services that serves to enhance student engagement,

improves learning outcomes and helps academic institutions navigate the changing

education landscape

Z2, z3and z4 are three components of z5 that include features like interactive e‐textbooks,

multimedia resources and other online course solutions

• Its z6 is an e‐book platform that provides access to thousands of authoritative reference

works from Gale and more than 70 publishing partners, researchers

Gale is a leading global provider of digital and print product solutions that support education and research in public, academic and K‐12 libraries

Private: Foreign Company – Company 1 (3/3)


SAMPLE

Player 2

Device 1Corporate Information

Headquarters

Founded

Presence in India

Key People

Product Specifications

Business Highlights• u1 works on complex technology challenges and it directly drives its business on u2

• It primarily builds software and applications that support u3 websites across the world along with core development in the domain of payments, transportation, search and digital products

• Has launched a new Kindle store for Indian consumers wherein u4 is the exclusive seller of the u5 e‐reader It will offer u6 book purchases in rupees

Name Price (INR) Connectivity Dimensions Web Display Battery Life, Wireless Off

On‐device Storage


SAMPLE

Foreign Tablet PC Players (1/5)

Company Snapshot: Device 2Corporate Information Business Highlights

• The first u7 Tablet PC launched in India was u8

It houses Nvidia Tegra 2 processor which is highly regarded in recent

times for its multimedia capability

• u9 has included extra features on its tab including an e‐reader

application for viewing e‐books in Kindle or any other Android

e‐reader app

Headquarter

Employee Strength

Contact Information

Revenue

Tablet Offering

Product OS DisplayProcessor

& RAMWi‐Fi

Network (3G)

GPSUSB Port

Tablet Offering

Note: The list is not exhaustive


SAMPLE Smartphone Price and Specifications (1/3)

Brand Model Price (INR) Operating System Processor RAM 3G Wi‐Fi GPS

App

leHTC

LAVA

LG


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market research report : e-book market in india 2012

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