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APP MARKETIN CHINA

AUGUST, 2015

Daxue香港上海北京

Consulting



App Market in China

As Chinese continue equipping themselves with

mobile phones at a very fast rate, the app market

in China is enjoying a similarly large growth. Today

there are 1.29 billion mobile users in China, and

that mobile phone market is fueling the app

market. Recently, with the success of the iPhone

5 (featuring a larger screen), the number of apps

downloaded on the IOS store has reached record

levels in China. This has been pushed to the

extent that the Chinese are now downloading

more IOS apps than the US. The app market is

one of the most dynamic markets in China and is

producing sky-high revenues.

1,290,000,000 mobile users in China



Trends in the Market

Despite having many apps imitated from the US

such as Baidu browser, Baidu Maps and Baidu

Photo Wonder, effectively identical in function

and sometimes even look to Google apps, the

Chinese are welcoming unique and innovative

apps. China is displaying an advantage in terms

of payment apps over any other region, partly

because credit cards are not very widespread

in the country. These payment apps are powered

by the demand for getting things delivered at

home. Alipay saw the fastest growth in the last

few years, however new apps are taking over,

such as Tenpay, Bestpay and Lakala.

Mobile payment apps

are more successful than credit cards

Alipay saw the fastest

growth in the last few years



200,000,000+Chinese use

mobile devices to learn

Trends in the Market

Another type of app that is particularly successful

on the app market in China concerns language

classes. According to China Internet Network

Information Center (CINNIC), in 2013 there were

more than 200 million people using their

mobile device to access some form of Mobile

Learning content.



The app marketstretchingbusinessimplementations

In addition to using phones frequently and in large

quantities, China has the largest 3G subscriber

population in the world. Their number is estimated

to be 1.4 times greater than the US. As a result,

apps requiring access to 3G Internet are developing

with more ease in China. Wechat, for example, has

reached 600 million monthly active users, with the

vast majority located in China.

600,000,000WeChat monthly active

users (MAUs)

China has the largest 3G subscriber

population



The app marketstretchingbusinessimplementations

The QQ international app is the 2nd largest

messaging app and accounted 321.8 million users.

The popularity of those apps is enabling new

opportunities for businesses, as they are more

than just messagins apps. Brands are using

social media apps to reach the young generation,

suggesting discounts, as well as developing and

promoting the image of the business.

QQ International is one of the world’s most used

instant messaging clients



Chineseapp markettransformations

The Chinese app stores are performing 2/3rd

of world’s downloads and amongst them 2/3rd

of apps downloaded are in Chinese language.

Translating an app into Chinese before promoting

them on the Chinese app market is essential to

ensure large download amounts. Furthermore,

QR codes are very popular and commonly used

to spread apps to consumers. Their utilisations

should be analysed closely in order to promote an

app in China.

Chinese app stores

perform 2/3rd of world’s downloads

QR codes are extremely

popular in China




Unlike the West, Android users on the app market

in China have a choice of more than 200 android

app markets. Some surprising apps appear across

the platforms. For example, an app called Didi Da

Ren (Didi hit people) enabled customers to hire a

thug to beat up a chosen target, in a rather twisted

reinterpretation of the Didi Dache car hiring service.

This app has since been banned, but it does show

that there is space in the app market for virtually

any sort of service, and launching on an app store

is comparatively simple.

More than 200 Chinese app stores




The perspective of the rise of a new, highly profitable

and difficult to control market is being eyed closely

by the Chinese government. For the first time, the

Chinese government has put into place regulations

for messaging apps: from now on all Wechat users

must agree to comply with a strict set of regulations

governing online behaviour. According to Chinese

representatives the regulation will ensure “building

a clean cyberspace.” Government tampering

is likely to cause significant damages to the app

market, though a thriving grey market is expected

to continue growing.1. http://pcappstore.baidu.com/en/index.php

2. https://www.techinasia.com/10-android-app-stores-china-2014-edition/

3. http://www.forbes.com/sites/chriswright/2015/03/12/why-is-alibaba-investing-in-snapchat/

4. https://appinchina.co/the-market/

5. Daxue Consulting App Market Research



1,290,000,000 mobile users

Chinese app stores perform 2/3rd of world’s downloads

Lakala is the fastest growing paymentmobile app

More than 200 Android app stores exist in China

Payment with apps are more successful than credit cards

China has the largest 3G subscriber population

200 millionChinese people use apps to learn

Game apps in China are similar to the WestAngry birds & Fruit Ninja

2/3rds of apps are downloaded in Chinese

Baidu market is one of the most popular app stores in China

China’s app market



About usDaxue Consulting is a market research

company dedicated to providing the best

specially tailored, high-quality, customer-

specific data in one of the most challenging

markets in the world; China.

We leverage our unique network of university

organizations and professors, business

associates, industry experts and foreign and

local consultants to find the information you

need efficiently, reliably and in a manner that

addresses your specific needs. We excel

because we’re reliable, resourceful and

flexible, everything that the Chinese market

demands.

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Consulting

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[email protected]

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