In brief
A successful app business needs original ideas, a well-organised team, experienced development support and careful management of market risks. Low entry barriers do not make survival easy, especially for SMEs that struggle to fund user and traffic acquisition.
A wave of entrepreneurship is sweeping the world, and mainland businesses are seizing the opportunity to establish funds to help young people in Hong Kong realise their entrepreneurial dreams. Once a business succeeds, the next challenge is to remain competitive. Widespread internet access, together with the extensive use of smartphones, is encouraging young people eager to explore new technologies to enter the field of mobile application (APP) development. App development began five years ago, when the market retention rate was just 5%—a deeply discouraging figure. Even so, the rapid growth of electronic trade in recent years prompted the provision of an electronic trading platform for the public.
The market had not anticipated that the mobile revolution would arrive with such force, sparking a wave of mobile apps that continues to surge. The barriers to developing mobile applications are low. With an original, fresh idea, a well-organised team and an experienced development company, it is possible to create a perfect user experience and an app that readily becomes a popular sensation.
SMEs Struggle to Buy Traffic with Deep Pockets
In the application market, users and traffic are the indicators used to measure an app’s success or failure. Businesses with ample funds can spend heavily to acquire users and traffic, but SMEs face considerable difficulties promoting themselves this way. A slight misstep can plunge an entrepreneur into disaster. When facing business difficulties, entrepreneurs should avoid blindly changing their operating strategies and instead calmly analyse the causes and consider solutions. Surviving successfully in the industry is therefore no easy task.
Survival requires careful assessment of market risks, particularly for those lacking entrepreneurial knowledge and experience. Do not assume that copying foreign products and business models will bring success. Without innovation and adjustments to suit the market, empty talk alone will never secure a foothold amid fierce competition. Although the barriers to entry are low, finding suitable investment partners and opportunities remains essential. Otherwise, entrepreneurs risk losing on both counts.
Looking ahead, app and internet ventures will primarily take the form of services centred on the mobile internet, serving as a vehicle for business services. The mobile internet will continue to extend into offline activities, transforming offline commerce across industries such as finance, retail, healthcare and property by improving payment methods.