The Rising Dominance of Apps Run by China in the Global Market
In recent years, Chinese apps have been dominating the global market, garnering millions of users worldwide. Their success is due to the fact that they cater to local preferences and have innovative features that cater to the demands of users. In this article, we will explore the reasons why Chinese apps are becoming increasingly popular and what it means for the global market.
Localisation
One of the main reasons why Chinese apps are gaining a considerable market share is localisation. Chinese companies are quick to identify local preferences and tailor products to meet them. For instance, WeChat, China’s largest messaging app, gained immense popularity due to its “super-app” status. It combined various apps into one, offering users features such as video-calling, mobile payments and mini-programs, which allow users to book a cab or order food without leaving the app. Such localisation efforts have made apps like WeChat and Alipay indispensable for consumers in China.
Innovation
Chinese companies are also known for their innovative features. They are not afraid to experiment and offer users features that are not as common in western apps. For example, Pinduoduo, China’s e-commerce app, has introduced an innovative “team purchase” feature. It allows users to team up with others to buy bigger quantities of products at lower prices. The feature proved to be extremely popular and helped the app gain millions of users within a short period.
Global Expansion
Many Chinese companies have also been expanding globally and tapping into new markets. According to a report by App Annie, a mobile app data provider, Chinese apps were downloaded approximately 31 billion times outside China in 2019. TikTok, the short-video app, is a prime example of a Chinese app that has expanded globally. It has become a social media sensation in the US, and its popularity has been attributed to its unique features and ability to offer users an escape from other social media platforms.
Challenges Faced by Chinese Apps
While Chinese apps have been successful globally, they have also faced challenges. Some countries, such as India and the US, have expressed concern over apps’ data privacy policies, alleging that Chinese apps collect sensitive user data, which could be used for nefarious purposes. The allegation has led to the banning of apps such as TikTok in India, and the US government’s threat to ban it.
Conclusion
The rising dominance of Chinese apps in the global market is a testament to the companies’ ability to cater to local preferences, offer innovative features and expand globally. However, it also raises concerns over data privacy, which must be addressed. Chinese companies must ensure that they take steps to secure user data and maintain the trust of their consumers. With increasing global competition, companies must continue to innovate and address regulatory challenges to maintain their market share.
