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China's loss India's gain: Homegrown apps grab 40% market share
China’s loss India’s gain: Homegrown apps grab 40% market share
The ban on hundreds of Chinese apps helped domestic apps leverage the opportunity especially in the second half of 2020, dominating the total app installs in the country with 40 per cent market share, a report said on Tuesday
Bengaluru: The ban on hundreds of Chinese apps helped domestic apps leverage the opportunity especially in the second half of 2020, dominating the total app installs in the country with 40 per cent market share, a report said on Tuesday.
The report titled "State of App Marketing" by AppsFlyer, the global attribution leader, analysed 7.3 billion installs that were recorded in India from January 1 to November 30, 2020, including 4,519 apps covering entertainment, finance, shopping, gaming, travel, news, food and drink and utility verticals.
The data also includes 933 billion app opens and 3.0 billion remarketing conversions.
"While Chinese apps have slipped in terms of overall market share (29 per cent), Indian apps leveraged this opportunity by dominating the install volume (40 per cent) in the country," said Sanjay Trisal, Country Manager, AppsFlyer India.
The country has seen a surge in homegrown apps after the ban on Chinese apps, like ShareChat, Josh, Moj, Mitron, Chingari, Roposo, Trell and more.
The overall mobile usage increased, and semi-urban areas emerged as the hub for mobile usage in India, giving rise to an ideal opportunity to reach younger digital consumers. The overall findings showed an increase in India's app installs with 38.5 per cent of market share, beating China and the US in 2020. Uttar Pradesh led the market in non-organic installs (NOI) at 12.10 per cent, leaving behind Maharashtra at 11.49 per cent due to the impact of lockdown.
"Owing to the availability of cheaper mobile data and handsets, the tier 2, 3, and 4 cities saw a rise in mobile usage in gaming, finance, and entertainment," the report said.
Foreign apps from Israel, the United States, Russia, and Germany made further inroads into this rapidly growing market and are in line to challenge China," Trisal noted.
"Regional content is a key byproduct of this trend, and it will be the next big pivot for app marketers."
Entertainment vertical enjoyed the fastest time to first purchase, often converting the user within the first 10 minutes.
"Shopping events and promotions made for a significant rise in in-app purchases, and relaxed COVID-19 restrictions helped support the spike as well," the report mentioned.
Overall, 50 percent of all app uninstalls happen within the day of installation.
"Uninstall rates increased as compared to last year -- this insight paves the way for marketers to launch their remarketing campaigns," the report said.
The report found that while spend and reduced marketing budgets led to lower fraud rates across all apps, improved preventive measures also contributed to the decline in mobile frauds.
"Fraud will remain a serious issue and will come back in 2021 as soon as the marketing budgets recover," it said.
