Final missing puzzle in Super Apps — Indian edition
In a nation of over a billion people, where 600+ million smartphones are wielded by a staggering 48% of the population with internet access, the potential for a super app seems ripe for the taking. Especially when the demographic makeup skews toward millennials and Gen Z, who devote around 4.9 hours daily to their mobile screens — a stat among the highest globally. This scenario paints a picture of an ideal landscape for a super app, given the market’s size and inclination. An average Indian smart phone user is expected to have quiet a struggle to download an average of ~51 apps with 2–4 GB of RAM (assumption based on 2019 data) and most common storage is expected to be around 64–128GB mark in smartphone valued at ~$ 224. So, this looks like a perfectly poised market for any Super-app to take over the arena right? Not quite yet.
International Scenario
Super apps aren’t novel; their roots trace back to the early 2010s when the proliferation of internet and smartphones ignited their emergence. China’s WeChat serves as a prime example, initially a messaging and photo-sharing platform that evolved into a multifunctional behemoth. Beginning with a mere seven engineers, WeChat expanded its arsenal to encompass features like digital payments, an integrated store, and even a robust search engine. This trend is global — Indonesia’s Gojek, Russia’s Yandex, and Vietnam’s Zalo pay, among others, further underline the reach of super apps.
An Indian & US Market Paradox
In India, there has always been plethora of growth drivers for the apps environment — a very good urban population count, very cheap internet, rising disposal income and tech-savvy young generation. All the big giants have tried their hand at becoming “the super-app” of Indian subcontinent — from startups like Paytm, hike messenger to giant houses like Tata , Reliance and MNCs like Whatsapp (Meta) & Amazon.
Take for instance Paytm. It started as a mobile recharge and payment system app which slowly expanded into online wallet business and then entered into the e-commerce space. Although, they are having a sizeable traction, topm(top of the mind) recall is as payments and financial services app. Whatsapp has been the go-to messaging platform for the Indians with largest market share. Yet when they tried to enter into the Whatsapp UPI game — expected level of UPI users weren’t actually using the in-build payments system. House of Tata’s is a complete different story — a huge brand with lot of loyalists yet Tata NEU’s limited services, poor user experience and also login for each segment entry without much benefits has had been an hassle. Although, marketing has been quiet extensive for Tata NEU app recently, it wasn’t the case when the app was started.
Similarly, even in the tech-forward US, constructing a super app is easier said than done, with Musk’s vision of an encompassing app (like ‘X’) or similar ambitions from Zuckerberg’s Meta, necessitating integration of diverse services amidst a complex regulatory environment.
Data Privacy, diversity and Late entry in a consolidated market
There are few key reasons for super-apps not taking up the mantle yet in India. One of the key issues here was the Data privacy concerns surrounding the apps usage. There has been lot issues with the data privacy in Indian environment in past and Super-app, being an integrated one stop app, will generate even more amounts of data and hence people are bit skeptic due to the data privacy concerns and data usage policies. With India also passing the Data privacy bill recently, there can be lot of regulations that the super-app makers may have to pass through in order to meet the requirements.
All the other countries’ businesses doesn’t face this unique problem — Diversity. India’s diversity is such that India in her own-self can be called as a sub-continent. Take for example the languages — India is home to almost 22 official languages, 121 languages. Take the demographics — you can see people being so tech savvy as IT people to the most traditional users (non-tech) people such as agriculturist and the ages of both categories can vary from 20 to 60 years old. There are people who prefer trendiest of clothes to simple and plain clothes. Its houses almost all major religions of the world and there are more than 10’s and 100’s of different tribes that can be found in every direction of India. The culture within the India states can also vary based on their socio-economic experiences. Such is the beauty of Indian diversity.
The Indian E-commerce market has been quiet consolidated by various players (mostly duopoly) — in both products and services segment. The product segment is largely dominated by likes of Amazon and flipkart (formerly Snapdeal also had a sizeable chunk). The services segment is no different — Uber and Ola dominate the Indian ride hailing apps, Swiggy and Zomato are battling it out in the Indian food delivery segment. Indian eGrocery has been dominated by the likes of Big Basket with a sizeable lead against the likes of Blinkit(zomato), Amazon and Flipkart. Hence, the late entry of the super apps has been a major issue. The app on its own doesn’t have any specific features and looks on surface like an aggregator of a combination of apps instead. Without the advantages of being preferred as niche segment’s go to app, its very hard to find brand loyalists and promoters.
Generative AI’s promise for future
Generative AI has capabilities and can show a lot of promise for the future of super apps in India. First and foremost challenge it can solve is the language diversity issues in the Indian context. It can tackle language diversity by facilitating instant content and app localization. This will enable the apps to be more user friendly. The second challenge to be addressed is the user’s personalization. Personalization is addressed by modifying app usage based on individual preferences, optimizing storage and performance.
The third and most important use of Generative AI integration — Content generation, adaption and engagement. Indians, in particular, have a good chunk of time spent on social media — a recent study has concluded that we spend almost 1/5th of our everyday life (barring sleep) in social media engagement. With the Generative AI in place, the AI can generate content based on our likes — for example, a cooking receipe for a homemaker, an educational content for a small kid, a course on skill updation for young professional, an entertainment and news discussion for the senior citizens, text to sound creation for the visually impaired. You name it generative AI has got it. The cross-selling feature of super apps (a marketer’s dream) will only get enhanced when the Generative AI starts to suggest selling products inside of those apps, the real synergies shall kick in and companies will see through the growth they expect.
Final Thoughts : Possible but difficult
Realizing the potential of super apps, be it Musk’s ‘X’ or Mark’s Meta or Ambani’s Reliance, demands substantial investments of time, resources, and effort. The intricate interweaving of services requires meticulous planning and adaptation. In India’s case, the confluence of diverse B2C companies and past AI-based endeavors like JioInteract hint at a potential path. However, breaking the super app code remains an endeavor that only time will unveil.
As the Indian market grapples with its unique nuances and challenges, the potential for super apps looms large. Diverse segments, languages, and expectations necessitate a holistic and adaptive approach. With Generative AI’s potential and visionary efforts, the concept implementation isn’t far-fetched. The journey to India’s super app is marked by optimism and ambition, as innovators strive to unlock a realm of uncharted possibilities.
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