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China and the app economy

Date post: 05-Dec-2014
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Overview of China Market, Facts about appstores: "Where the apps are," Mobile ad spending- whats ahead, research about consumer apps
20
China and the App Economy 1 Photo Credit: SocialMediaSEO.net
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Page 1: China and the app economy

China and the App Economy

1

Photo Credit: SocialMediaSEO.net

Page 2: China and the app economy

Outline

• Overview of China Market

• Facts about appstores:  “Where  the  apps  are”

• Mobile ad spending – what’s  ahead

• Research about consumer apps

Page 3: China and the app economy

Introduction  to  China’s  Mobile  Market

• 1,023.7 million mobile subscribers (April 2012)• 76%  of  China’s  population

• 3 x larger than USA mobile subscriptions

• 159.3 Million 3G users (April 2012)• 15%  of  China’s  mobile  subscribers,  global  average  is  20%

• China’s  3G  market  grew  28%  from  Nov.  2011  to  March  2012

• 22% of global smartphone shipments in 2012 Q1

3 Source: MobiThinking

“By  the  end  of  this  year,  China  will  have  350  million  smartphones,  that’s  more  phones  than  there  are  people  in  the  

US.”- Alvin Graylin, CEO of mInfo

Page 4: China and the app economy

China’s  Unique  App  Economy

• 80 million new subscribers annually for the past decade

• 40% of internet users connect solely via a mobile phone

• Historically, Chinese have been reluctant to pay for apps

• 62% of iPhone owners have purchased at least one app

• 23% of Android users have purchased at least one app

• A taste for localized content

• Nearly 50%  of  China’s  top  25  apps  are in Chinese

• 65% of top 300 free apps are regionally popular only

• Only 20% in USA and Europe

4 Sources: TechCrunch,, BBC and App Annie

Page 6: China and the app economy

Apple’s  Chinese  App  Store

Strengths

• 25 billion apps downloaded worldwide

• China has 2nd highest iOS app downloads in the world

• App store revenues grew 213% in one year (May 2011-May 2012)

• Downloads increased 305%

• iPhone has 19% market share

Weaknesses

• Despite high quantity of downloads, ranks 8th in total revenue generated

• Piracy and jailbreaking of the iPhoneare rampant

• Allows users to download paid apps for free

• In China every iOS app download generates $0.03

• Every US download generates $0.28

7 Source :PC Advisor

Page 7: China and the app economy

China  Mobile’s  Mobile  Market

• Launched in 2009

• World’s  largest  mobile  phone  operator

• 640 Million phone subscriptions (Jan. 2012)

• Activity– November 2011

• 30 Million downloads• 87% under 3 RMB ($0.50)

• Avg. price: 2 RMB ($0.30)

• Avg. game price: 6.3RMB ($1.00)

– January 2012• 150 Million Mobile Market users

• 120,000 games and apps

• 490 million downloads

5 Source: The Next Web

Page 8: China and the app economy

China  Mobile’s  New  Mobile  Market

• Previewed July 2012

• Set to launch September 2012

• China Mobile to take 50% of revenues from sales, compared to

Apple’s  30%  revenue  share

• Will integrate searches from other app stores

8

Source: Gomo News6

Page 9: China and the app economy

Nokia’s  OVI  Store  • 120 million registered customers

• 120,000 apps

• 15 million downloads per day

• 90% of users access in local language

• Top-5 Apps Globally in 2011

– Facebook Chat

– eBuddy Messenger

– WhatsApp Messenger

– High Speed 3D Free

– Skype

9 Source: Nokia

Page 11: China and the app economy

China’s  Mobile  Advertising

• Potential to reach over a billion people

• Compare to 300 million with internet ads

• Most effective mobile ads combine 3 factors:

• Social Media

• Mobile Phones

• Location-Based Services

10

Source: eMarketer

Page 12: China and the app economy

China’s  Mobile  Ad  Spending

Page 13: China and the app economy

Commissioned mobile market research

• Surveys conducted in May/June 2012• Focused on casual dining restaurants• 500 respondents in Tier 1, 2, 3 cities

Page 14: China and the app economy

Have you used the  restaurant’s  mobile app?

62%

22%

10%6%

Percent of respondents (max = 100%)

No, I don't know there is one

No, haven't had the chance to

Yes, on my mobile

Yes, on someone else's mobile phone

Page 15: China and the app economy

If you were to design the restaurant's mobile app, which of the following features would you include? Please select top 3.

0% 10% 20% 30% 40% 50% 60%

Mobile ordering for at-home delivery

Receiving special offers and other rewards, as a member of the loyalty program

News of other coupons and special offers

Ability to purchase restaurant's gift cards or e-coupons for your family & friends

Payment for your order, in place of cash or a debit card

Mobile ordering for in-store pick-up

Product Information about restaurant's foods and beverages

Maps, directory or locations

Games, and other fun activities

Max = 100%

Percent of respondents (top 3 choices allowed)

Page 16: China and the app economy

When dining at the restaurant, would you check-in on your mobile phone to share your location and: _____________ ?

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Earn points for current or future rewards from the restaurant's loyalty

program

Receive discount/offers for your current or next visit to any of

restaurant's locations

Share discounts and offers received via checking in with your friends via social

networks, like Weibo or RenRen

Max = 100%

Percent of respondents (more than 1

choice allowed)

Page 17: China and the app economy

If you joined the restaurant’s  loyalty  program, what kind of information would you be prepared to offer to help it personalize the rewards you received?

Percent of respondents (more than 1 choice allowed)

Max = 100%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Mobile phone number

Name

Your birthday

Gender

Favorite products

Postal / Email address

Number of family members

All of the info

None of the info (below)

Page 18: China and the app economy

If another similar restaurant you frequented had a loyalty program that you could join offering with special offers, exclusive events, and other privileges, would you be: ___________________ ?

40%

38%

22%More likely to increase the amount you ate at the other restaurant, but continue  eating  at  McDonald’s  about the same

Likely to increase the amount you ate at the other restaurant and decrease the amount you ate at McDonald’s

Continue eating at the other restaurant  and  McDonald’s  about  the same as before

50%

35%

15%

More likely to increase the frequency of visit to the other restaurant, but continue eating at Pizza Hut about the same

Likely to increase the frequency of visit to the other restaurant and decrease the frequency of visit to Pizza Hut

Continue visiting the other restaurant and Pizza Hut at about the same frequency as before

Page 19: China and the app economy

China’s  Mobile  Future

“Don’t  look  to  Japan  or  Korea  to  see  how  consumers  will  

be  using  technology,  or  to  the  U.S.  or  Europe.”

“China  is  the  hotbed  for  how  consumers  will  live  in  the  

global world going forward – and  it’s  all  about  mobile.”  

– James Fergusson, Global Head of TNS

19 Source: eMarketer

Page 20: China and the app economy

This presentation has been prepared by:

Shanghai Headquarters

Bridge 8, Building 9, Unit 9605 No. 25 JianguoMiddle Rd., Luwan District200000 Shanghai, China

Austin headquarters

1300 Guadalupe St., Ste. 201

Austin, TX 78701

For more information please contact: [email protected]


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