Why should Languages be a differentiator in the highly competitive App Space?
By: Amit Bhushan Date: 24th Feb 2014
With the FB revving up the mobile based product applications and services markets through acquisition of a leading Chat service provider offering eye-popping valuation, the market for Apps has surged to a new level. All kinds of App providers are once again humming with activities and discussions are on for how to gain ‘ears’ or ‘eyeballs’ of mobile users; to perch up their valuations and get investor interested with them. This is not all that unfamiliar as we have seen something like this previously during Dotcom boom; however it is yet to be seen as to how this is likely to unfold in this round. The mobile market is hugely bigger compared to the internet as usage of mobiles as well as its reach is much more compared to the internet. And therefore the race is likely to be crazier if it unleashes up to its full potential as earlier boom.
While the net is limited in its use as it is accessed mostly for ‘office’ work where network and bandwidth are readily available without much challenge. The usage for personal use amongst ‘individuals’ are limited as only the more elite or upwardly mobile people use the same especially in the ‘emerging markets’. Therefore it is use for limited hours for personal work for email, fun, chat, games, movies, music, porn etc. This may be due to cost and quality of access as well as due to limited availability/cost of computers, (also limited availability of power) etc. This pattern of use is also reflected in the languages of websites being available in different languages. Most websites and services are offered in English Language which is spoken in most of the developed world and elites across the globe (where it is a second language) followed by Chinese, Japanese, French, Spanish, Dutch, Portuguese (Spanish, French, Dutch or Portuguese are also second languages in developing world) etc. Very few sites are available in languages like Hindi, Russian, Arabic, Polish, Javanese, Swahili, Bantu, Persian, Malay etc. and even wherever the sites are available in these languages, there is generally an English version available. Rare would be the websites who offer their services in only local languages only i.e. without offering the same in at least one of the principle languages like English/Spanish etc.
This is likely to change with mobile as the mobile is much more widely spread-out due to its being cost effective instrument with easier and affordable ‘access’ due to low license costs in developing world. So use of mobile in local language abounds and it offers ‘services’ viz. talk, conference, message, chat as well as internet access (for limited use) to users who would access it in local language (although not all services may be available for access in local language presently). The mobile is also ubiquitous due to consumption pattern of services by its users. Most of the mobile is used for communication between people speaking same language and personal communication is quite a significant component of overall consumption compared to say internet. Also while the phone services is ‘available’ to users of any language/type of communication; the services based on mobile (like Chat, Message board etc.) are yet to be made available in ‘local language’ to most of the users. This may be due to limitation of the mobile instrument in user’s hand as well as due to technology app not supporting it as present technologies for Apps have primarily concentrated on elite market and mimicked internet based services, until now. So a user may not be able to message, chat or surf in the local language which drastically limits the potential of the mobile based applications. Let’s see this challenged, as investors begun to pour money to hook users to their Apps and build valuation for their businesses. The deal is an excellent example of valuations that can be achieved if adequate users can be hooked to a platform and their active usage can be retained over a period of time.
The deal valuation goes on to show the investor appetite to offer good valuations for Apps with significant user base since these can be used to broadbase offering of existing internet based services to a larger user group already captivated by an App provider. Presently the Apps may be limited to offering their services to users of a particular language or limited to some languages only although this can be the group of relatively elite customers. However considering the fall in development costs and time of mobile Apps, it may be wise for businesses active in the area to go in and capture ‘ears’ and eyeballs’ by offering Apps similar to existing popular Apps in local languages and bridge gaps in services available in local languages and hook on to customers early on. This is because the momentum is going to build up further in market as competing social sites, web-stores as well as popular search engines will be forced to respond to market rather than allow FB simple a walkover into the business of marriage of social media with mobile app/s. The game is just likely to start, so keep watching.
Some of the models to be explored may include:
1. Alibaba
2. Bloomberg
3. Twitter
4. 360Buy
5. Palantir
6. Dropbox
7. Square
8. MLB.com
9. Softlayer
10. Vente-Privee
11. VANCL
12. Airbnb
13. Pinterest
14. Datapipe
15. Spotify
16. Craigslist
17. Flipkart
18. Ozon Group
19. Wonga
20. Hulu
21. Klarna
22. Kaspersky Lab
23. Rovio
24. Conduit
25. Aricent Group
26. Survey Monkey
27. Mu Sigma
28. ZocDoc
29. Just Eat
30. Gilt Groupe
31. Everyday Health
32. Evernote
33. LivingSocial
34. Criteo
35. Zulily
36. Zoosk
37. Coupang
38. Redfin
39. Qualtrics
40. Seamless
41. Media Ocean
42. JustDial
43. 10gen
44. AppNexus
45. GitHub
46. Tumblr
47. Box.net
48. Glam Media
49. Stella & Dot
50. Marketo
51. Etsy
52. One Kings Lane
53. Nasty Gal
54. Klout
55. Automattic
56. Xiu
57. Manta
58. Eventbrite
59. Sugar, Inc
60. Kickstarter
61. Apptio
62. Fresh Direct
63. eHarmony
64. Veracode
65. Wix
66. Turn
67. Quantcast
68. Nest
69. Fab
70. Foursquare
71. Storm8
72. Flipboard
73. Vibrant Media
74. Rubicon Project
75. OpenX
76. Return Path
77. Quora
78. Snapdeal
79. Tremor Video
80. RightScale
81. Whaleshark/RetailMeNot
82. Break Media
83. Tagged
84. Yext
85. Stripe
86. Rocket Fuel
87. Mind Candy
88. AddThis
89. SoundCloud
90. Xirrus
91. Federated Media
92. Say Media
93. Yodle
94. Coupons.com
95. Path
96. Shazam
97. Plenty of Fish
98. Warby Parker
99. Thrillist
100. Vox Media
101. Gawker Media
102. Media6Degrees
103. CafeMom
By: Amit Bhushan Date: 24th Feb 2014
With the FB revving up the mobile based product applications and services markets through acquisition of a leading Chat service provider offering eye-popping valuation, the market for Apps has surged to a new level. All kinds of App providers are once again humming with activities and discussions are on for how to gain ‘ears’ or ‘eyeballs’ of mobile users; to perch up their valuations and get investor interested with them. This is not all that unfamiliar as we have seen something like this previously during Dotcom boom; however it is yet to be seen as to how this is likely to unfold in this round. The mobile market is hugely bigger compared to the internet as usage of mobiles as well as its reach is much more compared to the internet. And therefore the race is likely to be crazier if it unleashes up to its full potential as earlier boom.
While the net is limited in its use as it is accessed mostly for ‘office’ work where network and bandwidth are readily available without much challenge. The usage for personal use amongst ‘individuals’ are limited as only the more elite or upwardly mobile people use the same especially in the ‘emerging markets’. Therefore it is use for limited hours for personal work for email, fun, chat, games, movies, music, porn etc. This may be due to cost and quality of access as well as due to limited availability/cost of computers, (also limited availability of power) etc. This pattern of use is also reflected in the languages of websites being available in different languages. Most websites and services are offered in English Language which is spoken in most of the developed world and elites across the globe (where it is a second language) followed by Chinese, Japanese, French, Spanish, Dutch, Portuguese (Spanish, French, Dutch or Portuguese are also second languages in developing world) etc. Very few sites are available in languages like Hindi, Russian, Arabic, Polish, Javanese, Swahili, Bantu, Persian, Malay etc. and even wherever the sites are available in these languages, there is generally an English version available. Rare would be the websites who offer their services in only local languages only i.e. without offering the same in at least one of the principle languages like English/Spanish etc.
This is likely to change with mobile as the mobile is much more widely spread-out due to its being cost effective instrument with easier and affordable ‘access’ due to low license costs in developing world. So use of mobile in local language abounds and it offers ‘services’ viz. talk, conference, message, chat as well as internet access (for limited use) to users who would access it in local language (although not all services may be available for access in local language presently). The mobile is also ubiquitous due to consumption pattern of services by its users. Most of the mobile is used for communication between people speaking same language and personal communication is quite a significant component of overall consumption compared to say internet. Also while the phone services is ‘available’ to users of any language/type of communication; the services based on mobile (like Chat, Message board etc.) are yet to be made available in ‘local language’ to most of the users. This may be due to limitation of the mobile instrument in user’s hand as well as due to technology app not supporting it as present technologies for Apps have primarily concentrated on elite market and mimicked internet based services, until now. So a user may not be able to message, chat or surf in the local language which drastically limits the potential of the mobile based applications. Let’s see this challenged, as investors begun to pour money to hook users to their Apps and build valuation for their businesses. The deal is an excellent example of valuations that can be achieved if adequate users can be hooked to a platform and their active usage can be retained over a period of time.
The deal valuation goes on to show the investor appetite to offer good valuations for Apps with significant user base since these can be used to broadbase offering of existing internet based services to a larger user group already captivated by an App provider. Presently the Apps may be limited to offering their services to users of a particular language or limited to some languages only although this can be the group of relatively elite customers. However considering the fall in development costs and time of mobile Apps, it may be wise for businesses active in the area to go in and capture ‘ears’ and eyeballs’ by offering Apps similar to existing popular Apps in local languages and bridge gaps in services available in local languages and hook on to customers early on. This is because the momentum is going to build up further in market as competing social sites, web-stores as well as popular search engines will be forced to respond to market rather than allow FB simple a walkover into the business of marriage of social media with mobile app/s. The game is just likely to start, so keep watching.
Some of the models to be explored may include:
1. Alibaba
2. Bloomberg
3. Twitter
4. 360Buy
5. Palantir
6. Dropbox
7. Square
8. MLB.com
9. Softlayer
10. Vente-Privee
11. VANCL
12. Airbnb
13. Pinterest
14. Datapipe
15. Spotify
16. Craigslist
17. Flipkart
18. Ozon Group
19. Wonga
20. Hulu
21. Klarna
22. Kaspersky Lab
23. Rovio
24. Conduit
25. Aricent Group
26. Survey Monkey
27. Mu Sigma
28. ZocDoc
29. Just Eat
30. Gilt Groupe
31. Everyday Health
32. Evernote
33. LivingSocial
34. Criteo
35. Zulily
36. Zoosk
37. Coupang
38. Redfin
39. Qualtrics
40. Seamless
41. Media Ocean
42. JustDial
43. 10gen
44. AppNexus
45. GitHub
46. Tumblr
47. Box.net
48. Glam Media
49. Stella & Dot
50. Marketo
51. Etsy
52. One Kings Lane
53. Nasty Gal
54. Klout
55. Automattic
56. Xiu
57. Manta
58. Eventbrite
59. Sugar, Inc
60. Kickstarter
61. Apptio
62. Fresh Direct
63. eHarmony
64. Veracode
65. Wix
66. Turn
67. Quantcast
68. Nest
69. Fab
70. Foursquare
71. Storm8
72. Flipboard
73. Vibrant Media
74. Rubicon Project
75. OpenX
76. Return Path
77. Quora
78. Snapdeal
79. Tremor Video
80. RightScale
81. Whaleshark/RetailMeNot
82. Break Media
83. Tagged
84. Yext
85. Stripe
86. Rocket Fuel
87. Mind Candy
88. AddThis
89. SoundCloud
90. Xirrus
91. Federated Media
92. Say Media
93. Yodle
94. Coupons.com
95. Path
96. Shazam
97. Plenty of Fish
98. Warby Parker
99. Thrillist
100. Vox Media
101. Gawker Media
102. Media6Degrees
103. CafeMom