Globally, various OS players offer app stores with hundreds of thousands of apps.
However, the key issues with most global app stores are of discoverability and lack of regional apps. Also, there is little or no provision for device OEMs and carriers to extend their brand across these app stores and engage the consumer, as these players have no access to consumers’ apps purchase & usage behavior and other analytics.
Customized, branded app stores offer a lot of flexibility for OEMs/carriers. If implemented correctly and with a definitive purpose, a branded app store could be a powerful tool for OEMs/carriers. Along with being an extended brand promotion and consumer engagement tool, it can be a potential differentiator, increase device/service sales and revenues, help understand consumer usage behavior (thus, enabling user profiling and targeting), provide a platform to cross-sell and upsell products/services and act as a retention tool (potentially reducing churn).
A branded and curated app store will tackle the issue of discoverability for the consumer and also allow the OEM/carrier to promote a specific set of apps/content aligned with their brand promotional activities. In India, branded app stores are developed and offered as per OEM’s/carrier’s requirements either as one-time implementation or a managed/hosted service by niche OTT technology providers (such as Borqs, a niche Android solutions provider).
A few device OEMs and carriers operating in India identify this opportunity and are preparing to offer customized app stores for their smartphones:
- Samsung already has ‘Samsung App Store’, co-existing with Google Play Store and the Samsung, India team drives market specific apps and content
- India contributes to over 60% of downloads (in all APAC markets) for a global Android-based smartphone OEM
- CDMA-only carrier MTS has launched “Planet App”, an app store with specific set of apps and content for Android-based devices on its network
- A leading dual-technology carrier is soon expected to launch an app store (with user-defined window for curated apps) for smartphones on its network
- Vodafone India is revising its revenue-share arrangements in favor of app developers and content providers/aggregators to encourage increased app/content development targeted for Indian market
These are encouraging steps by key industry players. But to be successful with their app store strategy in India, the players have to overcome many challenges such as consumer and retail channel education, distribution channel selection (pre-burnt, SMS/WAP based installation, STK, OTA download, etc), unproven monetization models, increasing competition and potential commoditization.
We believe that the key ingredients for a successful app store in India are relevant apps and content, a simple and consistent user interface, a mutually beneficial (for provider and consumer) monetization model and an effective marketing campaign.
Starting as a differentiator, potentially driving device/service sales, branded app stores could soon become hygiene in the Indian market. Now is the time for mobile device OEMs and carriers to start thinking on custom, branded mobile app store strategy. Convergence Catalyst believes that if exploited smartly a curated, branded app store can successfully deliver on key brand promises for a player at a regional level.
Jayanth Kolla is co-founder and partner at Convergence Catalyst. For more information visit www.convergencecatalyst.com/