Comments on: Business case for ‘Indian’ App store

By: Karthick

Karthick — Wed, 10 Mar 2010 09:15:20 +0000

There exists no market in the current Indian Mobile application Content. With more operators & sliding call rates ask for the operator to look for different avenues.

And surely application market is a good bet. But with already airtel,rcom & aircel into the application market. It’s tough for a startup to get into this market.

But the opportunities are plenty to explore. But need a lateral business model to exploit.

By: bipin

bipin — Mon, 15 Feb 2010 05:34:00 +0000

Hi Lalit, We are thinking exactly along these lines. One of the key requirements for an independent app store to succeed is that it needs to have certain sticky apps or services. These sticky apps make the user go back to the online store again and again. Also, the customer needs to trust your brand.

Would like to know more about your product. ( Tried downloading but page is not opening.)I am reachable at bipinATmobikwik.com

By: lalit

lalit — Mon, 01 Feb 2010 19:13:06 +0000

Hi Rakesh,
I am with you regarding the prepaid model.
Regarding affordability my bet would be on Rs 9 /- as average price
Cheers,
L

By: Rakesh Luthra

Rakesh Luthra — Mon, 01 Feb 2010 17:13:15 +0000

Hi Lalit,

Great summary about Appstore business. I agree with your view that an independent appstore would be successful (not just in India). Let’s call it iAppStore.

Let’s think of something radical – how about a pre-pay appstore with few extras like a cooling off period of 30days per application and a loyalty programme with points per app downloaded. And, maybe 10% discount to all students.

The offer –
For customers – Customer buys a mobile phone contract and gets Rs 1000 voucher to be used on a iAppStore. Each application bought would give some points to the customer which can be refunded as cash, against the phone bill or by buying more apps. Customers can always buy pre-paid vouchers from phone shops or via internet and get delivery to their home.

Customer could be on any handset and could download any application, i.e. all applications must be compatible with all mainstream mobile OSs. Customer gets 30 days to cancel (or uninstall the app) before the payment is deducted from the voucher.

Delivery of applications can be done via OTA (over the air) or a free and simple web/ PC/ mac based UI (user interface) that syncs the apps, photos, music.

For developers – Developers pay for a subscription (let’s say Rs 500) and upload applications validated (tested and rated) by NOT the iAppStore owners, but by other developers (minimum 5).
Once the approvals are over 90%, the application is launched. The ratings are controlled by views, downloads, ratings, revenue, etc…

For operators – uhmm.. there’s nothing directly, however, the ARPU would increase.

For the iAppStore owner – revenue from subscription charge from developers and 30% of the application price.

Now, I know you’ll think – how will iAppStore pay for the initial Rs 1000 voucher that has been circulated for free. Well, from the subscription charge from developers. Developers (like manufacturers in other industries) effectively pay for cost of acquiring new customers (as they’re not paying for advertising)

One thing I don’t know is the affordability levels (developers vs customers) and market size (of developers vs customers). Once you know this, you can play with the pricing of subscription and the initial free voucher.

So, what do you think of this? Would this work in India?

By: lalit

lalit — Fri, 15 Jan 2010 10:22:14 +0000

Sure, you can ..

By: Dvuv

Dvuv — Thu, 07 Jan 2010 16:28:22 +0000

I want to quote your post in my blog. It can?
And you et an account on Twitter?

By: Guru Kini

Guru Kini — Tue, 22 Dec 2009 10:44:24 +0000

That was a great SWOT analysis, Lalit. Content-generation and/or gathering may be a tough task though.
I think the success of App store also has to do with the fact that most of the iPhone users are tech-savvy and iPhone primary market, North America, is very internet aware. Apple doesn’t have the same degree of success in other parts of the world with their app store (this is also due their DVD-zone type content segregation I think).
A primary challenge today is that getting a layman to use the mobile internet is quite difficult. I know things are rapidly getting simplified but even now it takes a number of steps to connect to the internet. And this is just over the browser. Also, for some reason, PC based app solutions (including iTunes) seem to be very popular. That’s not going to work in India where mobile penetration is far greater than that of PCs.
Mobile Apps tightly integrated with an online app store are the way forward. Buy stuff with a click without struggling with the scaling and rendering and scrolling and other browser pain points. This is not a new idea, of course, but somehow has not reached out.
The operator-manufacturer nexus works *fairly* smoother between the operators and the phone ppl here in India (when compared with, say, North America). E.g., Airtel and Nokia tie up. That said, if a neutral third party app store has any chance of survival – it has to be in the Indian market!