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Navigation on a High
A recent survey shows that usage of navigation devices is on a growth path, especially in mature markets
Beryl M
Wednesday, February 03, 2010
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In a recent survey conducted by NAVTEQ, to track knowledge and usage of navigation and tracking devices, there has been a registered increase globally for such devices in the past two years. As per the study, 48% of respondents in the US said that they had used navigation, up from 22% in 2006. For Europe, the same study showed that in three of the most mature markets (UK, France, and Germany), 53% of the respondents had used navigation, up from 26% in 2006.

However, more than usage, the familiarity factor has been the trend, with people having heard about the devices, but not actually using them. Thus, in APAC (China and South Asia), only 34% of the respondents said that they had used navigation, while another 58% were familiar with it.

Rohan Verma, director, MapmyIndia.com which claims 80% of the Indian market share in sale and supply of navigation and tracking devices says, "In the last two years, usage of such devices has steadily been doubling. However, it is mainly the business professionals who use such devices, which aids them in their travel, and not the youth who are the main link between advertising medium and end users, but not end users themselves."

Innovative features like navitainment-in terms of car, multimedia, music, and movies-which make such devices both utility and lifestyle competent, may be the answer to increasing usage. Adds Verma, "Besides, consumers are slowly beginning to realize the importance of navigation devices for safety and security to aid in directions, especially in terms of inter-city travel." Such devices are increasingly being used in inter-city buses, and MapmyIndia displayed quite a few of these new devices at the recent auto exposition. Other popular providers of such devices in the Indian market are Garmin and SatGuide, which offers GPS navigation maps from SatNav technologies, as part of their service options.

New Verticals
In another study by NAVTEQ regarding consumer views on real-time traffic services, 48% of the US participants said that they use their navigation system more often than they did before they had access to real-time traffic. The pattern was repeated in Europe, with 44% of the respondents saying that their navigation system usage had increased with the addition of real-time traffic access. In a Q3 global proprietary study conducted across eight different countries, two-third of mobile phone consumers stated that they wanted a mapping service that provides both car and walking directions.

Talking about the Indian perspective, Verma says, "I believe we would be able to increase usage of navigation devices in India by offering more value added options like location-based traffic updates, discounts or coupons of stores near the consumer, etc. People today give more importance to real-time information that is situation based. Thus, we plan to tie-up with various enterprises to offer these services, which should be available in the next six to twelve months. The technology is already there, it is just the enabling that needs to take place."

Tracking devices are also emerging as a commercial trend in India, especially for public transport, which facilitates communication within the network, and helps to monitor safety and security anywhere, anytime.

Reaching Out
With an aim to reach out to the mass market, Verma believes there are two solutions that should be implemented. "Firstly, from the policy point of view, I believe the import duty on these devices should come down."

Currently, the duty on navigation devices is 30-35% against a meager 4% for GPS enabled phones. "With reduction in duty, we will be able to reduce cost price, and affordability will in turn lead to an increased usage," Verma adds.

Secondly, he also believes that all mobile handsets, from the basic to the high-end ones, should offer some amount of navigation solutions, so that there is an increased awareness.

Localized services like availability of this technology in vernacular languages will also ensure a good response from the masses.

Beryl M
berylm@cybermedia.co.in

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