The 2024 Union Budget of India highlights the electric vehicle (EV) sector as a central component of the country’s sustainable development agenda. Key measures include plans to support EV manufacturing, expand charging infrastructure, and emphasize the electrification of public transport. These initiatives align with India’s broader goal of achieving net-zero emissions by 2070. Finance Minister Nirmala Sitharaman announced a substantial ₹1 lakh crore fund to support R&D in emerging sectors, including EVs, aimed at stimulating innovation and attracting private sector investment through long-term, low-interest loans.

Nitin Gadkari, Minister for Road Transport and Highways, outlined a transformative vision for India’s electric mobility future. He targets 30% EV penetration in private car sales by 2030, with higher targets for commercial vehicles and two- and three-wheelers. Gadkari also emphasized the need for an extensive EV charging network along national highways and introduced the concept of electric highways for long-haul trucks and buses. His vision extends beyond individual vehicles to an overarching shift in transportation infrastructure, emphasizing sustainability, efficiency, and alignment with environmental goals. This approach is expected to drive substantial growth in India’s EV sector, advancing the country’s goal of achieving a 100% EV market in the coming decades.

In this paper we will first dissect the Indian automobile market, focusing on its segmentation and the associated viability gaps basis of which we will try to assess EV applicability for the segments. Next, we’ll delve into the challenges, particularly in terms of cost of production and governance issues. Finally, some relevant questions are discussed briefly with our thoughts on the future of EV landscape.

Figure 1: Key module and area of discussion

Market segmentation and viability gap assessment:

To understand the complexities of the Indian automobile market and how electric vehicles (EVs) can play a transformative role, we need to categorize the market based on product types and their applications, avg. fuel consumption, and some other crucial parameters. By doing so, we can identify the viability gaps that each segment is associated with.

Table 1: Segmentation of Indian automobile market

Legend 1

Incentivization to encourage EV adoption would be meaningful for those segments which covers a very high annual distance (logically would be on top of the list in terms of fuel consumption and emission), lagging in terms of EV tech availability (and hence continuing with the existing petrol/ diesel/ hybrid models), and most importantly provides a larger public benefit (and not just limited to private usage).

As per the brief assessment, Commercial space is the major area with considerably high viability gap, along with other segments such as Cab (passenger vehicle, used commercially).

Understanding the segments with potential of EV applicability:

As electric vehicle (EV) technology becomes increasingly accessible, it is essential to prioritize sectors that offer the greatest potential for public benefit, emissions reduction, and cost-efficiency – and adopt EV especially where public usage and environmental savings are highest. By targeting these high-impact sectors, governments and the businesses can achieve faster returns on investment and accelerate the shift to a more sustainable future.

Focusing on critical vehicle segments presents a valuable opportunity to drive EV adoption in India. These segments, which have high public usage and substantial emissions reduction potential, align well with India’s sustainability goals. However, EV adoption must also be economically viable for end-users, as high Total Cost of Ownership (TCO) can create a barrier. Government intervention may be necessary to address high TCO and promote adoption in these areas.

Table 2: Vehicle segments with potential of EV applicability

Adopting electric vehicles (EVs) in India’s agriculture sector, despite a Total Cost of Ownership (TCO) estimated to be 1.4x to 1.6x higher than traditional vehicles, is crucial for long-term sustainability. EVs, particularly electric tractors, offer significant savings on fuel and maintenance, which can offset the higher initial costs over time. Additionally, electric farm vehicles reduce emissions and noise pollution, benefiting both the environment and the health of rural communities. As battery technology improves and production scales up, TCO gap will become narrow, making EVs a more cost-effective and eco-friendly option for Indian farmers in the near future – and hence, this segment has been added in the table above.

Issues related to Cost of Production (CoP):

The high cost of production remains a significant barrier to EV adoption in India. Factors like expensive battery technology and the need for advanced materials and components often lead to higher prices for consumers. Understanding the production cost challenges across different segments is crucial to making EVs more economically viable.

Table 3: Vehicle segments and cost of production related issues

Issues related to Governance/Policy:

The effectiveness of EV adoption in transforming India’s automobile sector is deeply linked to governance and policy. Key issues such as regulatory frameworks, infrastructure development, and government incentives significantly impact EV adoption. Examining these governance-related challenges reveals gaps in current policies and highlights areas where effective governance could enable EV adoption. The table below consolidates these issues by vehicle segment.

Table 4: Vehicle segments and governance issues

Key questions to ponder:

The existing gap in the government’s policies and the high cost of production for electric vehicles in the commercial and agricultural sectors are closely intertwined, presenting significant challenges to widespread EV adoption. Addressing these areas in tandem, are crucial for creating a sustainable and scalable EV ecosystem. The following critical questions aim to explore solutions that can bridge these gaps, reduce production costs, and accelerate the transition to electric mobility across key industries.

Table 5: Key Questions

Our thoughts – Future of the EV Governance Landscape:

In line with India’s vision for net-zero emissions by 2070, the government has introduced multiple schemes and policies to promote e-mobility and reduce fossil fuel reliance.

For Light Commercial Vehicles (LCVs), the Indian government introduced the Production-Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage to boost domestic battery manufacturing, although some phases of this scheme have concluded. On the buyer side, the FAME India Scheme Phase II, which has largely been implemented, focused on supporting the electrification of public and shared transportation, indirectly benefiting LCVs by subsidizing vehicle costs and infrastructure​. For Heavy Commercial Vehicles (HCVs), the government, through reports like NITI Aayog’s “Transforming Trucking in India,” emphasized the need for coordinated actions between the private and public sectors to scale up zero-emission trucking and expand charging infrastructure. Direct incentives for buyers were limited, with support primarily provided indirectly through initiatives like the Auto PLI Scheme, which is no longer ongoing, and the PM-eBus Sewa Scheme, which continues to facilitate the electrification of public fleets but not specifically HCVs​

For Agricultural Vehicles, the Indian government’s policies for electrification are still in a nascent stage compared to those for other vehicle segments. The Kisan Urja Suraksha Evam Utthan Mahabhiyan (PM-KUSUM) scheme, while primarily focused on promoting the use of solar energy in agricultural operations, such as for irrigation pumps, indirectly supports the reduction of diesel reliance in the sector. However, direct government incentives for the electrification of tractors and other agricultural vehicles remain limited.

To accelerate EV adoption in key vehicle segments such as Light Commercial Vehicles (LCVs), Heavy Commercial Vehicles (HCVs), and agri-vehicles, a combination of enhanced financial and infrastructure incentives is crucial- on the supply side as well as the buyer side.

Table 6: Suggested government interventions

Conclusion

India stands at a transformative moment in its journey towards electrification in the automobile sector. The challenges and opportunities across vehicle segments reveal a complex interplay of governance, production costs, and infrastructure gaps. Addressing these requires a nuanced approach that leverages India’s strengths while learning from global best practices.

The governance and policy framework in India, though supported by schemes like FAME II, remains inconsistent across states, creating fragmentation in the EV market. Harmonizing these policies at a national level could significantly boost adoption by reducing regulatory barriers and fostering a unified market. Similarly, policies on import duties and incentivization can address high production costs, encouraging domestic manufacturers to scale operations and achieve economies of scale.

The production cost challenges, particularly in batteries and advanced EV components, underscore the importance of investing in local R&D and creating a robust manufacturing ecosystem. China’s dominance in EVs, driven by government-backed subsidies and a strong local supply chain, provides a blueprint for India. Targeted support for battery production and fostering collaboration between government and private sectors could significantly reduce costs while boosting innovation.

India’s strength in the two-wheeler market, as one of the largest adopters globally, is a positive indicator of its potential. However, the gaps in rural penetration, awareness, and infrastructure need immediate attention. Expanding the charging network through public-private partnerships, as demonstrated by California, can provide a scalable solution. Similarly, agricultural EV adoption, though nascent, presents immense promise. Electric tractors and farm equipment can deliver long-term savings and environmental benefits, despite their current higher TCO. Strategic subsidies and awareness campaigns targeted at rural areas could catalyse demand in this sector. Moreover, India must take inspiration from Norway’s comprehensive consumer-centric incentives and Germany’s R&D investments to bridge gaps in its EV ecosystem. A strong focus on research in battery technology, coupled with a consistent nationwide push for EV adoption, will position India as a global competitor in this space.

In summary, India’s path to EV leadership requires harmonizing policies, scaling local production, and investing in infrastructure and innovation. By adopting lessons from global EV leaders and tailoring them to local needs, India can overcome its challenges and unlock the full potential of electric vehicles across all sectors. A strategic and sustained effort will not only accelerate India’s transition to sustainable mobility but also establish it as a key player in the global EV market, driving economic growth and environmental stewardship.

The post EV takes the centre stage in India’s Net-Zero 2070 strategy appeared first on Avalon Consulting.

They emphasized how boosting women’s workforce participation is critical to India’s aspiration of becoming a developed nation by 2047. The article highlights successful regional and global examples, and calls for inclusive policies, skill development, and ecosystem support to unlock the full economic potential of gender parity.

Why is it important for India to improve labour force participation of women to meet its goals?

India, the world’s fifth-largest economy with a GDP of USD 4 trillion, aims to become a developed nation by 2047, a vision known as Viksit Bharat@2047. This ambitious goal encompasses achieving high GDP per capita, improving standards of living, and fostering sustainable development. Despite substantial economic growth since independence, India currently ranks 138^th globally in nominal GDP per capita and 129th in GDP per capita at purchasing power parity (PPP) as per the International Monetary Fund. A significant challenge in India’s development journey is its low women’s labour force participation. As of 2023, India’s overall labour force participation rate (LFPR) hovers around 30%, with only 33% of women aged 15 and above participating compared to 77% of men. This gender disparity is further highlighted in the Global Gender Gap Report where India’s ranking is ranked 129^th in 2024, underscoring the urgent need to address gender parity in the workforce.

Women in Leadership

Women have demonstrated remarkable composure and resilience in managing stressful situations, particularly in leadership roles.

Business Benefits of Gender Diversity

For business leaders, there are several qualities of women which are invaluable and can provide significant benefit to organisations such as:

In India, women’s participation in labour has grown significantly in recent years but still lags compared to developed nations. While women’s labour force participation rate (LFPR) has grown from 23% in 2018-19 to 33% in 2022-23 it is still much lower than males. Countries like Vietnam with a Female LFPR of 63% as against Male LFPR of 75%, along with developed nations, have higher women’s participation in their workforce.

Male dominance is often assumed in manufacturing due to the tough conditions – intense shopfloor work and remote locations. But the four southern states of Tamil Nadu, Karnataka, Andhra Pradesh, and Kerala account for about three-fourths (72%) of all women working in the manufacturing sector. Manipur also has a high gender balance (51% in 2019-20) among those working in its manufacturing sector. This shows that while there are challenges, there are also favourable examples that can be emulated.

Case Study: Tamil Nadu’s Success

Among the four southern states with high women participation, Tamil Nadu stands out as it employs almost half of the working women (~42%) in the manufacturing sector of India. Successive governments in Tamil Nadu have focused on both economic and human development, which has led to high levels of women participation. There are progressive policies and a supportive ecosystem for women such as:

Some companies are already adopting best practices from Tamil Nadu in other states to boost their productivity. For instance, Kirloskar Brothers’ plant in Coimbatore has been managed completely by women since 2011. Inspired by this success, the company has achieved a 35% women employee base in its Sanand plant in Gujarat.

Learning from Global Practices

India can also learn from its counterparts on how to improve women’s labour force participation by examining the policies of countries like Sweden, South Korea, and Brazil:

Moving Forward

There are several existing policies and programs in India which can help support women to join and continue in the workforce. However, the entire ecosystem needs to be well-supported by all parties involved. In terms of education and skill development schemes, which held a lot of promise, such as Beti Bachao Beti Padhao, have failed to reach the heights due to poor implementation and low fund utilization. The much-lauded Pradhan Mantri Kaushal Vikas Yojana (PMKVY) to train youths in industry-relevant skills to make them employable has poor placement statistics. However, there are encouraging signs as well, with childcare support being offered, extended maternity and paternity leaves, and workplace safety regulations being enforced and monitored diligently. As a result, the share of women-led startups has increased to 18% as of 2022 compared to 10% in 2017.

To realize the vision of Viksit Bharat 2047, India must continue to improve women’s labour force participation. A recent Barclays Research report stated that India could achieve an 8% GDP growth rate by ensuring that women account for more than half of the new workforce set to be created by 2030. Women’s participation in the labour force can drive innovation, improve household incomes, and is crucial for an equitable economy.

As India works towards becoming a developed nation by 2047, embracing gender inclusivity is not just a moral imperative but an economic necessity. For this, India needs to address cultural norms, enhance safety and infrastructure, implement supportive policies, and promote skill development. By learning from similar economies and from within the country and leveraging the combined efforts of the private sector and civil society with a commitment to gender equality, India can achieve the vision of Viksit Bharat 2047, creating a prosperous and inclusive future for all.

The post INDIA@2047 appeared first on Avalon Consulting.

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The post The Electric Vehicle Battery Lifecycle: A Strategic Opportunity for India appeared first on Avalon Consulting.

They explored the growing importance of customer experience (CX) in B2B markets, where complex transactions and long-term relationships require more than just competitive pricing.

Drawing from case studies across industries, they outlined six impactful practices—ranging from simplifying customer journeys to leveraging technology and personalization—to improve CX and drive loyalty. The authors argue that in today’s landscape, enhancing B2B CX is not just a differentiator but a necessity for sustainable growth.

In today’s competitive B2B landscape, customer experience (CX) has evolved from a differentiator to a fundamental expectation. Unlike B2C purchases, B2B transactions often involve multiple decision-makers and require long-term partnerships which make it complicated. A positive CX is crucial for building trust, encouraging loyalty, and translates into repeat business.

Based on our experience, we’ve identified several 6 practices to improve CX in B2B transactions:

1. Map the Maze and Become the Guide: Understanding the B2B Buyer Journey

B2B purchases are rarely straightforward & most buyers emphasize the importance of ease of doing business. Unlike B2C purchases, which can be completed in a few clicks or a quick store visit, B2B transactions are complex and often involve a lengthy process managed by key account managers alongside a challenging order process.

GE improved their B2B purchasing experience by upgrading the GE Healthcare Service Shop. Improvements included expanding inventory to $1.5 billion with 489K parts, integrating multi-vendor support, adding advanced search and reordering features. These enhancements enabled healthcare providers to efficiently search, compare, purchase online, check order statuses, and manage deliveries, offering a consumer-like experience. This upgrade eventually saved 300,000 customer minutes and ensured a 96% on-time delivery rate.

2. Speak Their Language: The Power of Clear Communication

Using technical jargon may impress your engineers, but it can confuse B2B customers. Imagine an investment firm bombarding clients with complex financial terms. A better approach is clear, concise communication tailored to the audience. Salesforce discovered that simplifying their product brochures and explainer videos significantly increased customer comprehension and satisfaction.

By using everyday language, businesses can build stronger relationships with their clients. When customers understand the information presented to them, they are more likely to trust the company and feel confident in their decisions. Companies that prioritize clear communication are often seen as more transparent and approachable setting them apart from competitors who rely on complex jargon.

3. Technology as a Teammate, Not a Taskmaster

Technology can streamline processes, automate tasks, and provide self-service options, but it should not replace human interaction entirely. HubSpot, a marketing software company, uses a customer portal for easy access to knowledge-based articles, tutorials, and FAQs – utilizing technology to resolve queries. However, they also ensure a dedicated customer success team is available for personalized guidance and troubleshooting.

Customers avoid churn when the support team can solve their problem during the first interaction. While AI chatbots can handle many support tasks, the human touch remains essential. Long-term and high-value customers especially prefer special attention and prompt resolutions, achievable when technology is used alongside human interaction to provide relevant and accurate information.

4. Speed is King and Queen: Streamline Processes for Efficiency

In the B2B landscape, speed and efficiency directly impact customer satisfaction & customers might switch if they face slow service. Streamlined processes ensure quicker responses, faster delivery times, and an overall better CX. Amazon Business excels in this area by leveraging advanced logistics and automated inventory management, providing rapid order fulfilment and real-time tracking, which significantly improved customer retention rates. Automatic order processing is another area for improvement since it reduces manual errors and accelerates the process. Dell’s automated order system has reduced processing times by 60%, leading to faster deliveries and happier customers.

5. Data-Driven Decisions: Leverage Customer Insights

In B2B, personalization is key to delivering exceptional customer experiences. Leveraging data-driven insights allows companies to tailor their offerings to meet the specific needs of each client. According to Salesforce, many B2B buyers expect personalized experiences that reflect their individual preferences and business needs.

Uses of data-driven decisions include

Use cases

6. From One-Size-Fits-All to One-on-One: Personalization is Key

B2B customers are not faceless entities; they are people with specific challenges, and they expect personalized content when using products and services. Adobe helped SalonCentric, a subsidiary of L’Oréal which provides salon products and owns salon stores, personalize their B2B offering.

Personalized offering for a B2B Customer

Case Study

Making B2B CX a Competitive Advantage

Customer experience for B2B companies sometimes is an afterthought, however, enhancing customer experience for B2B companies can have significant benefits, even if the results are not directly visible. Decreasing friction for customers by simplifying their experience through speed or communication while enriching the process with technology and efficiency will lead to greater loyalty and positive word of mouth. In times when product differentiation is difficult, ensuring that the experience of B2B customers is prioritized in the design of processes or products will help any company stand out.

The post Key Learnings from the B2B Customer Experience Journey: Improving CX is Now! appeared first on Avalon Consulting.

In today’s world, sustainability is no longer a buzzword but a necessity. As consumers and businesses become more environmentally conscious, the demand for sustainable products and business practices has surged. This shift has given rise to sustainability labels, which serve as a beacon for eco-friendly choices and sustainability standards.

The Role of Sustainability Labels

Globally, sustainability labels have become a crucial tool in promoting sustainable development within the Environmental, Social and Governance area. There are more than 300 labels, and they differ in many ways, hence it gets hard to navigate for companies seeking certification, as well as for consumers who wish to make choices based on credible sustainability labels.

Some prominent labels under ESG practices could be-

• Environmental certifications (e.g., Energy Star, EU Ecolabel, LEED Green Buildings, etc.)
• Social certifications (e.g., Rainforest Alliance Certified, Fairtrade, etc.)
• Governance certifications (e.g., EMAS, ISO 14001, etc.)

In developing countries, sustainability labels are also gaining traction. The Rainforest Alliance certification, for example, supports sustainable agriculture by promoting practices that conserve biodiversity and ensure fair treatment of workers. These labels not only help in protecting the environment but also in improving the livelihoods of local communities.

Why Are Companies Going for Sustainability Labels?

It is important to understand why companies are pursuing these certifications and why it has become a business imperative. Companies pursue sustainability certifications not just for ESG reasons, but to benefit from the 4R Elements:

• Regulatory Compliance: With stricter environmental laws, sustainability labels ensure companies meet ESG standards and avoid fines.
• Reward Realization: Sustainable practices boost efficiency, retain talent, attract investors and align with consumer preferences, adding value to all the stakeholders.
• Reputation Enhancement: Labels build trust with consumers, showcasing ethical practices and giving a competitive edge. According to a study by Nielsen, 65-70% of global consumers are willing to pay more for sustainable brands.
• Risk Mitigation: They help identify and reduce environmental or social risks, protecting the company’s reputation and financial stability.

Challenges to Adoption of Sustainability Labels

Adopting sustainability labels can be challenging for businesses, especially pressure to demonstrate environmental and social responsibility grow. One major issue is greenwashing, where companies make misleading or exaggerated claims about their products’ environmental benefits. A 2021 European Commission study found that 42% of green claims were deceptive, and as consumers become more aware, businesses risk damaging their reputation.

Why do companies resort to greenwashing? Many pursue sustainability certifications without meeting the necessary standards due to the high costs involved, including product development, compliance, and external consultations. These costs are often prohibitive, especially since sustainability labels are not always mandatory. Companies also struggle with compliance due to inadequate measurement systems—how can they improve without tracking key data?

Additionally, some certifications require adherence to best practices across the entire supply chain. For businesses renting facilities, particularly in markets like India, convincing landlords to invest in sustainable measures like renewable energy can be nearly impossible. This is compounded by the fact that sustainability certifications are more prevalent in Western markets, creating a disconnect in regions where such labels are still emerging.

Ultimately, the high cost of compliance and evolving regulations make it challenging for businesses to adopt sustainability labels effectively. Navigating these complexities is essential to maintain credibility and meeting consumer expectations.

Label Selection and Best Practices

Selecting the right labels is key, considering the significant investments of time, money, and management attention that can be consumed by the certification process. With 300+ such labels worldwide, selecting a suitable sustainability label is directly linked to the company’s ESG strategy.

The first step is to identify objectives, whether it’s risk mitigation, reputation enhancement, rewarding sustainability practices, or meeting regulatory requirements. These 4Rs will guide the decision-making process.

Next, conduct a market study to evaluate the certifications available and determine which ones align with the goals/objectives. Consider if the certification is a regulatory requirement (either current or upcoming), if customers demand it and are willing to pay a premium, and if investors value it. Additionally, check if competitors are pursuing similar certifications to stay competitive.

It is essential to assess the cost and time of compliance. Evaluate the certification’s requirements and whether it’s feasible for the business to meet them. Consider the financial and time investments required—how much will the certification cost, and what ROI will it provide? Does it align with both the short-term and long-term business goals?

By carefully evaluating these factors, a business can make an informed decision on whether pursuing a sustainability label is a strategic investment that aligns with business objectives and delivers tangible benefits.

Top global companies follow a strategic roadmap to select the appropriate label as per their ESG practices to enhance their credibility and commitment, some of the prominent examples are-

• Companies like Unilever and Nestlé pursue multiple certifications, such as ISO 14001 for environmental management and Fairtrade for ethical sourcing, to cover various aspects of sustainability
• Companies like IKEA and Apple publish detailed sustainability reports, outlining their progress and challenges. They use certifications like LEED for their buildings and ENERGY STAR for energy efficiency
• Brands like The Body Shop and Lush actively educate consumers about the significance of their sustainability labels, helping them make informed choices
• Leading firms ensure their sustainability claims are verified by credible third-party organizations. For example, Patagonia uses certifications like Fair Trade Certified to validate their sustainable practices

Future of Sustainability Labels

The future of sustainability labels in business is already unfolding, driven by the 4Rs. Companies adopt sustainability labels not only to support ESG goals but to gain a competitive edge, meet consumer demand, attract investors, and comply with evolving regulations. These motivations are dynamic and vary across industries and regions.

As consumer and investor preferences increasingly prioritize sustainability, companies must align with these expectations to stay relevant. Labels also help ensure regulatory compliance as stricter environmental laws are enacted worldwide. For businesses in emerging markets like India, sustainability labels are vital for meeting export market demands.

As sustainability regulations and certifications evolve, businesses must remain flexible in their strategies. In the future, sustainability labels will be deeply integrated into business models, influencing everything from product development to brand reputation, positioning companies to build trust, attract investment, and secure long-term success in a sustainable world.

Conclusion & Recommendations

Sustainability labels are essential in promoting sustainable development globally. They provide a clear and reliable way to identify sustainable products and businesses, empowering consumers and companies to make eco-friendly choices.

The key to selecting the right sustainability label lies in aligning it with your ESG strategy along with the 4Rs. As we strive for a more sustainable future, the importance of these labels will grow, requiring more attention from businesses and each company has unique sustainability goals, hence necessitating tailored advice. However, by adopting these labels and their practices, we can collectively contribute to a healthier, more sustainable world.

The post Emerging Power of Sustainability Labels appeared first on Avalon Consulting.

Rise of creators

In 2023, the market size of India’s creator economy was estimated at USD 976 Mn, and it is projected to reach USD 3.9 Bn by 2030 with a CAGR of 22% from 2023 to 2030.

Content creators use a variety of formats to engage with their followers, each offering unique advantages. Popular formats include short-form videos, images, stories, long-form videos, text, blogs, audio, GIFs, and memes. Among these, short-form videos stand out due to their immense popularity and high demand.

There are various sources through which creators make their revenue including brand deals, ad-share revenue, platform-specific monetization programs, starting their own brand, affiliate links, exclusive content, monetary tips, courses, subscriptions, consulting, merchandising, events and meetups.

Between 2019 and 2021, YouTube creators earned around USD 30 Bn from ads, while brands increasingly collaborated with them on long-term content. Subscription platforms like Patreon and Substack offer creators steady income, with over 8 million patrons on Patreon. Live tipping on Twitch and YouTube has grown popular, with Twitch streamers receiving USD 2.6 Bn in tips during 2020 and 2021.

Growth Drivers of the Creator Economy

India’s digital marketing landscape has shown fast growth, driven by increasing internet access and rising smartphone adoption.
The “Jio Effect” reshaped digital marketing in India by increasing internet access and online activity, with nearly half of the population now online. COVID-19 further accelerated the creator economy as lockdowns led to higher audience engagement and brands boosted investment in digital marketing. Both factors fueled the growth of creators, who saw social media as a lucrative platform for showcasing skills and earning.

Trends on time spent on social media

As of January 2024, internet users in India aged 16 to 64 spent an average of 2 hours and 26 minutes daily on social media. GWI reports that users aged 16-24 use 7.7 platforms per month, while those aged 25-34 use 7.9. Instagram was the most popular platform in 2023, with 74.7% of internet users and 516.92 million active users in India.

How social media influence purchase decisions?

People on social media often make purchase decisions influenced by trusted influencers who share near authentic and engaging content. Followers are inspired by their recommendations, leading them to explore suggested brands and products. If these align with their needs and budget, they are more likely to make a purchase, showcasing the significant impact influencers have on shaping consumer choices and driving buying decisions.

Why are brands shifting from traditional marketing to influencer marketing

This shift is driven by the search for authenticity, as consumers grow skeptical of traditional ads. Micro-influencers offer genuine, relatable content that truly connects with audiences.

Micro-influencers specialize in niche markets, making them valuable for brands targeting specific demographics. Their engaged followers enable brands to implement efficient marketing strategies that connect with targeted audiences.

Partnering with micro-influencers is cost-effective, offering lower fees and high engagement, making them appeal to brands of all sizes.
Micro-influencers offer creative, authentic content that resonates with their audience, capturing attention and aligning well with brand messaging.

This shift is evident by the fact that India’s influencer marketing sector is expected to reach a valuation of approximately USD 402 Mn by 2026, as per an EY report.

According to a survey done by EY, Automobile, E-commerce, and FMCG sectors are most likely to increase spending on influencer marketing, while other sectors show a mixed approach, with some planning to reduce budgets or not engage in influencer marketing at all.

Case studies

Nykaa’s influencer marketing for their Clay it Cool mask line featured beauty influencers sharing reviews and tutorials, creating buzz and engaging a wide audience, highlighting the impact of influencer partnerships (Instagram).

Audible is a top destination for audiobook enthusiasts. They partnered with YouTube influencers across gaming, style, and entertainment to promote their brand, generating over 83 million views and demonstrating the success of influencer collaborations in boosting engagement. (YouTube).

Challenges

Influencers face challenges like aligning brand deals with their niche, fair compensation, financial management, and burnout from constant content creation. Here, opportunities exist for marketing companies to create platforms that connect brands with creators, offer analytics, and support content production. Additionally, maintaining a loyal audience remains a continuous challenge in a competitive digital landscape.

Future of Influencer Marketing

Influencer marketing in India is set for significant growth due to rising digital literacy and social media use. However, the future will be influenced by evolving regulations focusing on transparency and consumer protection. Brands and influencers must adapt to these legal changes while executing effective campaigns. Navigating this regulatory landscape presents both opportunities and challenges, but with a focus on ethical practices, brands can successfully engage consumers and meet their marketing objectives.

The post Creator Economy and Influencer Marketing appeared first on Avalon Consulting.

Global Telecom Market

The telecom market encompasses the revenues generated by companies offering a diverse range of telecommunications services which include local and long-distance voice calls, enabling people to connect over vast distances, and sound and video transmission, which supports everything from everyday communication to media broadcasting. The global telecom market currently stands at ~$2.9 Tn in 2023 and expected to grow to ~$3.9 Tn in the next 5 years.

Why Telcos Must Diversify: Overcoming the Challenges of Staying Solely in Telecom

• Shrinking growth prospects: Telecom operators have faced challenging economics over the past decade, marked by sluggish growth and lower returns with significant value capture by tech companies. The sector’s share of the global economy has declined despite the increasing digitization of the world. A 2022 study by McKinsey reveals that the market cap share of the top 25 global telecom companies compared to the top 8 listed tech companies has drastically declined, dropping from 68% in FY2010 to 18% in FY2020.
• Commoditization of services: Traditional connectivity services are increasingly viewed as commodities by consumers. This commoditization is accelerated by the trend of infrastructure sharing, which diminishes the importance of network quality as a competitive edge.

Strategic Diversification for Telcos

Telecom operators are diversifying due to flat or declining revenues caused by saturated markets, price wars, service commoditization, and consumer resistance to price hikes. As per McKinsey, The revenue of the top 25 telcos globally had increased from ~$1200Bn to ~$1400Bn from 2010 to 2020 growing at a modest rate of ~1.5%. They are looking to leverage their trusted brands, sales reach, customer experience focus, and data analytics expertise to compete in digitally disruptive businesses.

Technology companies have diversified into cloud services, auto, healthcare, and telecom domains, similarly, telecom operators are seeking new revenue streams beyond broadband and wireless. They are exploring financial services, insurance, healthcare, home security, telematics, identity and security operations, and media. For example, Verizon has acquired businesses in cybersecurity.

Most telecoms have seen mixed results in diversification for two reasons. First, they struggle to focus and scale new ventures and to implement innovative business models. Second, some operators have moved into non-telecom areas where they lack a competitive edge, facing entrenched competition and lacking the necessary capabilities.

Most telecom companies excel in engineering and network maintenance but lack the skills needed for fast-moving, consumer-centric businesses.

To bridge capability gaps, telecom operators should ask 2 questions- A) Do we have the capabilities to support our diversification efforts? B) Will our move into the chosen industry disrupt it and give us a competitive edge?

Diversification options vary for each company, with unique advantages and disadvantages for each option.

Identifying Growth Opportunities (Where to Play):

1. Core Market Expansion – Targeting underserved regions with high growth opportunities by offering additional services over the core telecom services meeting unmet needs of the clients
2. Adjacent Markets & Emerging Markets – Targeting regional and global markets which suits the companies’ offerings and pose significant growth opportunities
3. Verticals Expansion – Identifying opportunities in high growth verticals (such as Financial Services, Healthcare, etc.) to mitigate risks associated with traditional verticals and utilize organizational strength to create significant shareholder value

Building Competitive Advantage (How to Win):

1. Diversified offerings – Telecom companies must extend offerings to be an end-to-end value chain service providers to dictate high margins that would propel growth for the companies
2. Operational Efficiency – Streamlining operational processes by negotiating favourable terms with suppliers and collaborating to share infrastructure costs
3. Innovation – Investing in new technologies and services and build the capabilities organically through investment in employee training and development; and exploring inorganic opportunities for a faster time to market and gaining a competitive edge in the market

A successful example is of Orange which diversified early, moving into content, IT integration, and cybersecurity. It launched Orange Money in Africa in 2008 and Orange Bank in France in 2017, with plans to expand to Spain and beyond. Orange aims to disrupt financial services by focusing on online banking and credit services, leveraging its extensive shop network, trusted brand, and customer data for accurate credit scoring.

The traditional telecom industry is at a critical juncture, facing challenges like market saturation, commoditization, and competition from tech giants. To remain relevant and profitable, telcos must diversify beyond traditional connectivity services. Key strategies include investing in cybersecurity, embracing new technologies like 5G and VoIP, focusing on business solutions, and exploring new verticals such as financial services and healthcare. Success requires overcoming challenges in scaling new ventures, embracing consumer-centric business models, and bridging capability gaps.

The post Beyond Connectivity – Telcos Chart New Paths for Growth appeared first on Avalon Consulting.

The conference brought together key stakeholders from across India’s chemical manufacturing ecosystem. Representing Avalon Consulting, Sumit Kumar shared deep insights on the evolving competitive landscape for India’s bulk and fine specialty chemical manufacturers. His session emphasized the need for India-specific strategic responses and focused on enhancing industry competitiveness through robust value chains, scaling innovation, and driving growth via partnerships and acquisitions.

The post Chemical Business Outlook Conference – Sumit Kumar appeared first on Avalon Consulting.

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The post Quick commerce is here to stay : B2C and D2C Consumer Products Brands Need to Act on the Changing Consumer Behaviour appeared first on Avalon Consulting.

The article explores the nuances of vehicle emissions in India, emphasizing the critical differences between Tank-to-Wheel (TTW) and Well-to-Wheel (WTW) metrics. As India accelerates its transition to sustainable mobility, Himanshu provides a data-driven perspective on how fuel type, driving behaviour, energy mix, and regulations shape emissions. The blog underscores the importance of holistic evaluation to drive effective policymaking, especially in a country grappling with high urban pollution and rapid motorization.

As India undergoes rapid urbanization and motorization, the need to address vehicular emissions is becoming increasingly important. With several Indian cities ranking among the most polluted globally, understanding the environmental impact of different vehicle types is essential for crafting effective policies and solutions. The transition towards sustainable transportation necessitates a nuanced analysis of emissions, emphasizing the importance of metrics like Well-to-Wheel (WTW) and Tank-to-Wheel (TTW) emissions. These metrics are invaluable for assessing the full spectrum of a vehicle’s environmental footprint, from fuel production and distribution to its actual operation on the road.

Tank-to-Wheel (TTW) Emissions

Tank-to-Wheel (TTW) emissions refer to the pollutants emitted directly by the vehicle during its operation. For internal combustion engine (ICE) vehicles, TTW emissions result from burning fuels such as petrol, diesel or Compressed Natural Gas (CNG), and include pollutants like Carbon monoxide (CO), Carbon dioxide (CO₂), Nitrogen oxides (NOₓ), Methane (CH₄), Particulate Matter (PM) etc. For electric vehicles (EV), TTW emissions are typically zero because they do not have a combustion engine and do not burn fuel.

TTW emissions are crucial because they directly impact local air quality, particularly in densely populated urban areas. Reducing these emissions is vital for improving air quality and public health.

Well-to-Wheel (WTW) Emissions

Well-to-Wheel (WTW) emissions provide a comprehensive assessment of the total emissions associated with a vehicle, encompassing all stages of fuel or energy production and usage, from extraction (the “well”) to the vehicle’s operation (the “wheel”). WTW emissions are divided into two components: Well-to-Tank (WTT) and Tank-to-Wheel (TTW). While TTW emissions represent the emissions produced during the vehicle’s operation, WTT emissions cover the upstream processes, including the extraction, refining, transportation, and distribution of the fuel or energy.

For internal combustion engine (ICE) vehicles using petrol or diesel, WTT emissions include those generated during the drilling, extraction, refining, and transportation of crude oil. For electric vehicles, WTT emissions involve the entire supply chain of electricity production, including transmission and distribution.

WTW emissions offer a holistic view of a vehicle’s environmental impact by accounting for both the production and consumption phases of fuel. This metric is particularly relevant in the Indian context, where the reliance on coal for electricity generation significantly influences the overall emissions profile of electric vehicles.

Factors impacting TTW emissions

• Regulatory framework:
  Emission norms in India follow European standards (Euro emission norms) but for the implementation timeline. The nationwide implementation of Bharat Stage II (BS II) emission norms was done in 2005, BS III in 2010 and BS IV in 2017. Europe meanwhile already moved to Euro 6 norms in 2014 indicating a major lag for India. This reason complemented by a drastic increase in air pollution levels, primarily in North India, prompted India to leapfrog BS V to straightaway implement more stringent BS VI norms in 2020.

  Further, with a focus to cut carbon emissions, India introduced Corporate Average Fuel Efficiency (CAFE) stage I norms in 2017-18 following it up with stricter CAFE II in 2022-23. The compliance requirements have pushed automotive Original Equipment Manufacturers (OEMs) to adopt newer technologies leading to improvement in TTW emissions. For instance, as per an ICCT publication, Maruti Suzuki Dzire petrol vehicle (a compact sedan) exhibits a CO₂ improvement of ~34% over 12 years from 2009 to 2020.

• Driving behaviour and conditions:
  The tightening of emission norms has certainly reduced the TTW emissions for ICE vehicles in laboratory test conditions, however, the performance deviates when the vehicle is driven on the road as affirmed by a recent report from ICCT. Driving habits and traffic conditions are crucial factors that influence TTW emissions. In India, with its congested roads and unpredictable traffic patterns, driving conditions can significantly increase fuel consumption and emissions.

• Vintage vehicles:
  Older vehicles typically have higher TTW emissions than newer models because they may lack advanced emission control technologies, are generally poorly maintained and are often less fuel-efficient. In India, where many vehicles on the road are older than 10 years, this is a significant concern. However, the Indian government has introduced a voluntary vehicle scrappage policy to incentivize the phasing out of such older and more polluting vehicles. This will help reduce TTW emissions by taking inefficient vehicles off the road and encouraging the adoption of cleaner vehicles.

 Factors impacting WTW emissions

• Electricity generation mix:
  For EVs, although they have zero tailpipe emissions (TTW), the emissions associated with generating electricity for charging significantly contribute to WTW emissions. India’s electricity grid is primarily powered by coal, which is a highly carbon-intensive energy source.

Installed capacity (MW)

As per the data from Central Electricity Authority (CEA), Ministry of Power – India, the installed capacity share of all fossil fuel-based power plants is ~55% as of March 2024 – a mere reduction of 9 percentage points from March 2010. Coal based power plants installed capacity, accounts for roughly half of the total installed capacity in India.

The share of renewable energy (RES) installed capacity – primarily wind and solar, stands at ~33% and has shown a strong growth in the last 7-8 years. The Indian government has set ambitious targets to increase the share of renewable energy in the electricity mix. As this share grows, WTW emissions for EVs are expected to decrease substantially.

• Fuel production and refining processes:
  For ICE vehicles, the extraction, refining, and transportation of petroleum-based fuels contribute significantly to WTW emissions. India imports most of its crude oil, and the refining processes required to convert crude oil into usable fuels result in considerable greenhouse gas (GHG) emissions. Importing crude oil adds to WTW emissions because transportation across long distances by ships and pipelines increase energy use. The upstream emissions (WTT) for fuels are therefore higher in India compared to countries that are more self-sufficient in energy production.
• Transportation losses:
  For EVs, the electricity transmission and distribution (T&D) losses add to WTW emissions. As per CEA, T&D losses have improved only marginally from ~23% in 2013-14 to ~19% in 2021-22. Given that the U.S. Energy Information Administration (EIA) estimated such losses at ~5% in the USA, there is huge scope for improvement in WTW emissions for EVs in India.

  For ICE vehicles, transporting fuel from refineries to distribution points adds to WTW emissions. The longer the supply chain, the more energy is consumed, and the more emissions are produced.

• Battery manufacturing:
  For electric vehicles, the production of batteries significantly affects WTW emissions. The energy and resources required to manufacture batteries, particularly lithium-ion batteries, can add to the overall emissions of EVs. The extraction and processing of raw materials such as lithium, cobalt, and nickel used in EV batteries are energy-intensive processes that contribute to upstream emissions. If battery production relies on coal-based electricity, as it often does in India, it can further increase WTW emissions.

Conclusion

Understanding Well-to-Wheel and Tank-to-Wheel emissions is essential for evaluating the environmental impact of different vehicle types in India. While ICEVs have the highest TTW and WTW emissions due to their reliance on fossil fuels, Hybrid Electric Vehicles (HEVs) may offer moderate reductions through improved efficiency and partial electrification. EVs provide the most significant reduction in TTW emissions and can achieve lower WTW emissions, especially when charged with renewable energy sources.

As technology advances and India’s energy landscape evolves, reducing both WTW and TTW emissions will be critical to achieving sustainable transportation. Policymakers, manufacturers, and consumers must consider these factors when making decisions about vehicle technology and infrastructure to minimize environmental impact and promote a cleaner, greener future for India.

The post Demystifying Tank-to-Wheel and Well-to-Wheel emissions in Indian context appeared first on Avalon Consulting.

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