'GPS on bike has a market in India'
The worldwide market for global positioning system (GPS) navigation and locationbased services has been growing exponentially and is expected to rise to 13.4 billion Rupees in 2014, with a high compound annual growth rate. Although still at a nascent stage in India, the GPS navigation market holds tremendous potential for growth, driven by its increasing acceptance among the younger generation as well as the exponential growth in popularity in car as well as in bike. However, unlike developed countries where navigation was established by portable navigation devices (PNDs), followed by vehicles and then smartphones , India is witnessing a reverse trend, says Rajat Tandon, director (India sales) of the Chicago-headquartered world's leading digital map and location content provider. However, with this development, does he foresee a trend setting in withthe bike manufacturers ? "Absolutely. Other Bike manufacturers are closely following the pursuit and we expect more announcements soon. In fact, we are seeing a significant growth of interest from Indian bike manufacturers on offering navigation as a part of the vehicle. Navigation helps increase their bike value and differentiate their product offerings. The other trend seen is an increasing interest in offering personal navigation devices as an aftermarket solution." But what about the products available in India? Are they at par with the latest products available in developed markets? "We would say that it is less about being at par with developed markets and more about what is really required in India, given the navigation preferences of Indian travellers. Every year, NAVTEQ invests in research to gain insights into the way locals navigate. This enables the company build a strategic road map based on understanding market requirements," says Mr Tandon.
Reason why suitable for Indian market :
GPS Navigation in India: Interesting times ahead
As per the of market maturity in INDIA, the expected stages are that of market development, rapid growth, saturation or maturity and the decline. Having had the good fortune to predict the evolution of GPS Navigation market in India, here is a retrospective of the various phases, from both the vendor’s and consumer perspective. Firstly, the stage of market development from vendor’s perspective was 1999-2003, mostly spent in understanding the technology, identifying various components and selecting the partners who could supply the same. From the consumer’s perspective, this phase started much later from 2005-2009 during which initially there was denial that it would ever work in India, then pessimism when it worked but people thought the market would not exist and finally neutrality giving companies the benefit of doubt that ‘maybe’ it would indeed work someday! The net result was that vendors spent time and money waiting for the market to get ready. Second phase of rapid market growth, interestingly, has not happened in India even until date. But from a vendor’s perspective the year 2007 and 2008 have seen a lot of competitive turbulence,a very small expansion of the market, bundles of contradictory claims from various service providers, which are activities expected during market growth only. From a consumer perspective the same years have already given him better pricing, more choice of product and an opportunity to give user feedback that help improve the product. The net result is that it is a consumer market already, but growth is yet to come! The third stage of market saturation and maturity from a vendor’s perspective is expected to be from 2007-2009, comprising of focus on product differentiators, identification of raw iron components costing as well as efforts to control the technical customer support costs. From a consumer perspective this phase is expected between 2008-2010, consumers will benefit from more choices in the market, excellent customer service and value...