Detailed News

Victoria

Event Recap - China and the App Explosion

21 June 2017

On 21 June, ACBC Victoria welcomed Mr James Nguyen, Co-Founder of M5859 Apps and contributing writer to Forbes, to present on the China app explosion and opportunities for Australian businesses.

James’ presentation covered the Chinese app landscape, arbitrage opportunities and the future outlook for app use and utilisation in China. The app explosion in China has been characterised by a 200% growth in the number of finance apps downloaded; revenue from video streaming apps in the past two years quadrupling; and a 2.6X growth in revenue from gaming apps.

While James pointed to the importance and prominence of messaging apps like WeChat, discussion centred on looking towards where the trends are currently pointing. This leads us to social live streaming.

China’s live streaming revenue is expected to reach $5 billion in 2017. This is $2 billion less than China’s movie box office total and half the size of its mobile gaming market. Further, 46 per cent of China’s internet population has used a live streaming app.

The increasing popularity of social live streaming in China therefore presents a new opportunity for Australian businesses looking for another channel to promote their products or services. Utilising online influencers with big followings and employing product placement in live streams allows you to reach your target market on a platform with which they are extremely engaged. 

A number of big companies have already begun employing live streaming, including Macy’s, Oreo, Xiaomi and Maybelline. Additionally, eCommerce giants Alibaba and JD.com have launched their own live streaming platforms creating a new frontier for online purchasing. On Alibaba’s platform, the conversion rate of content on Taobao Live is 32 per cent – 320,000 items added to a cart per one million views.

James concluded his presentation by highlighting that whether your company is large or small there are different layers of influencers, different ways to leverage these influencers, and different ways to build up online communities. Live streaming apps therefore present huge advertising potential and create a great number of commercial opportunities for Australian businesses.

The presentation was followed by an engaging Q&A session and fruitful discussion.

ACBC Victoria warmly thanks James for his extremely informative presentation. We also thank all those who attended and contributed to the session.