Necessity is the mother of invention and right now, a necessity in the disguise of opportunity is knocking the doors of Indian app makers. Citing the “emergent nature of threats”, Indian government banned 59 Chinese apps on June 29th.
The government said in the press release that these applications are engaged in activities “prejudicial to sovereignty and integrity of India defence of India security of the state and public order”.
The government’s move of banning these Chinese apps was backed by section 69A of the information technology act. The government also referred to complaints about data mining on Indian users without authorisation. However, this move was widely appreciated and welcomed by Indian app makers who were out of competition due to Chinese rival firms flooding the Indian market with Chinese capital.
This move has given a huge impetus to Indian companies, evidently propose increased its downloads from 5.5 million to 13.3 million and still counting. While, Sharechat which was in Indian market for last four years has nearly increased its users to 130 million. But hanging onto the subscribers and keeping them engaged won’t be very easy going for Indian companies. So, Roposo is planning about 100 online Competitions this year. Chingari is organising an event with the enormous prize money of ₹1 crore.
TikTok’s huge subscriber list was a result of a high tech Machine learning recommendation engine that took a large capital and a lot of time to develop. When TikTok entered the Indian market, it was backed by a huge capital of half billion dollars and it spent 150 Billion Dollars per month in peak times. A large part of it was spent on online Ad campaigns on giants like Facebook and Google, which gave it a big head start.
Indian Companies are facing a lot of competition from American companies as well as their Indian rivals. American app Dubsmash increased its users from 145 to 610 k. But they haven’t been able to attract the entire user base towards them as the top 3 apps combined have only 13% downloads to that of Tiktok. Amidst this Competition, Chinese companies are busy tackling this issue by diluting the Chinese stake in the company and shifting their headquarters out of China. Chinese companies came up with their clone apps which river again banned by the Indian government.
Indian companies have a short span of time to attract a large user base of Tiktok towards them because India is a market with huge possibilities and companies can go to any extent to win over this market.