China's app economy on fast track, taking up 50% of global downloads

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03:04

Mobile application downloads reached a record 194 billion worldwide last year, with China accounting for nearly 50 percent of the total, according to research firm App Annie.

With over 1.4 billion people and one billion smart devices, it makes sense that China downloads more apps than any other country, but the surge is due to more than just the number of users.

"Lower costs and higher coverage for more people to access mobile Internet is key,” said He Wenqian, an analyst from Beijing Analysys Network Technology, adding that favorable policies have also encouraged developers to provide services and meet demand in thousands of sectors.

"You Learn, You Cool" is one of the largest English learning platforms in China. Launched in 2015, the company mainly teaches students via its app using news wires and classical literature.

"Currently we have 60,000 hours of recordings already. Over 700,000 users have subscribed to our program," said Xia Peng, founder of the company.

The app charges for some lessons. An annual membership costs about 2,400 yuan, or 355 U.S. dollars. So far, the company has over 200,000 paid users.

Apps have become part of people's life. /VCG Photo

"We focus on content. We focus on delivery. We focus on teaching quality. So we spent zero RMB in marketing," Xia added.

App Annie's reports show that in 2018, China accounted for nearly 40 percent of the 101 billion U.S. dollars worth of global app consumption.

"China's mobile payment options have provided a convenient outlet for consumers to spend,” said He Wenqian, adding that the service coverage can be as high as 90 percent in some areas.

The analyst believes that Chinese app users also have an increasingly stronger willingness to pay, especially for original content such as entertainment, which also contributed to the surge in app consumption.

While more mainstream apps like those on English education emerge, some developers are eyeing niche markets. For example, there's an app that shows you how to modify a race car.

Racing enthusiast Ma Jun has taken his hobby from the garage to the web. Like a racer, Ma waited for his best time to cut in.

"We are taking advantage of the mobile Internet's booming development. We saw the opportunity and went for it," said Ma Jun, founder of Kachigaizhuang.

Ma's app has lured 10,000 users since its November launch, not bad for a start-up of 10. The car enthusiast said his ambition lies in the future of racing, while the fan base grows. And for now, the team's priority is not attracting financing, as Ma's young start-up is to focus on the content and build up its brand.

China's app economy is in the fast lane, as more people enjoy the benefits of the mobile Internet. As for developers, experts suggest that the next growth point may happen in smaller cities where markets are untapped.