Reliance Industries Limited (RIL) is well-placed in its consumer business segment with telco, retail and digital to benefit in the coming years as it gains traction with improving scale.
BofA Securities conducted an online survey of 1,000 users in India (using Survey Monkey) to gauge the changing consumer thought process and understand traction.
Key insights of the survey showed that on mobile tariffs, 69 per cent of the surveyed users don't mind paying 15-20 per cent higher telco tariffs.
Also Read | Elon Musk is no longer world’s second-richest person
"We see higher proportion (72 per cent/67 per cent) of Jio/Bharti users willing to pay 15-20 per cent more to enjoy the same services vs VIL (65 per cent)," BofA Securities said.
Demand for fixed broadband remains high with 22 per cent users having taken connection during Covid and 15 per cent intending to take soon.
The survey said 26 per cent prefer buying from Big Bazaar, 26 per cent from RIL stores (Reliance Fresh/Smart) and 18 per cent from DMart. This implies RIL will be in a dominant position in offline retail when potential the RIL-Future transaction completes, the survey said.
Also Read | 5 women employees sue Amazon over discrimination
The JioMart app continues to see strong early traction with 61 per cent of the surveyed users having already tried the app. Of these, 39 per cent intend to continue ordering from JioMart. Among online, Amazon continues to be the dominant e-com site with 65 per cent users preferring it, followed by Flipkart at 25 per cent.
Jio entertainment apps' traction is not as strong, as per the survey.
In the video OTT segment, YouTube remains popular with 50 per cent of users watching it. Only 5 per cent watch Jio TV/Jio Cinema.
On music streaming, Jio is a close No. 3 behind Spotify and Gaana.
Traction on Ed-tech, Health-tech and Gaming apps is good. As many as 61 per cent are using Ed-tech apps with 23 per cent using BYJU's. A total of 70 per cent users play online games and 74 per cent use a health app, with 22 per cent/18 per cent using Medlife/Pharmeasy and 9 per cent using RIL's Netmeds.
"While RIL's traction in these apps is not as strong currently, we believe that given the user demand, RIL would likely focus on improving traction," the survey said.
