In brief
Taiwan offers foreign app developers a promising testing ground and entry point into Asia. This 2016 article highlights 78% smartphone penetration, strong gaming revenue and users’ openness to foreign apps, while stressing that success is not guaranteed.
Since the industry began developing in 2008, apps have found it increasingly difficult to achieve major success. For app developers, testing the waters in a market with lower risk and a greater chance of success has become a crucial step before entering a new market. Smaller markets that are sometimes overlooked may offer an excellent testing ground for new apps.
Taiwan is one such thriving market. For foreign developers looking to expand into Asia, Taiwan will be the next billion-dollar app market。
To understand Taiwan’s market advantages, we must first look at Asia’s overall app economy. Because of cultural differences and preferences, Asia’s app economy often favours locally developed apps, making it harder for developers from Western countries to enter the market. Achieving genuine localisation inevitably comes at a high cost. China is a typical example: its app ecosystem is distinctive, and users prefer local apps, giving domestic developers an advantage. Whether in dating apps, ride-hailing services or other categories, foreign developers struggle to find success.
What makes Taiwan special? High smartphone penetration, a high-value gaming industry and strong acceptance of foreign apps
With foreign apps struggling to enter Asian markets, why is Taiwan regarded as Asia’s most promising app market? In the gaming industry, games have long been deeply rooted in Taiwanese culture. Taiwan’s iOS and Google Play download rankings feature mobile games from countries around the world. Taiwan also has a smartphone penetration rate of 78%, with an average of 40 apps on each user’s phone. This represents a major opportunity for foreign developers.
In 2015, Taiwan’s revenue on both iOS and Google Play continued to grow, placing it among the top 10 markets by revenue on both platforms. Taiwanese players are familiar with games and accustomed to making in-app purchases. Forecasts suggest that the value of Taiwan’s gaming market will grow fourfold over the next 4 years.
Many mobile games from around the world have already succeeded in Taiwan. Taiwanese users are welcoming towards apps from outside Taiwan and have no bias against them, giving foreign developers a greater chance of success in Taiwan’s app market. Taiwan also demonstrates that developers can find opportunities even in an Asian app market that is relatively small. This also suggests that other emerging Asian markets, such as Thailand and Indonesia, may have a degree of influence in the future. Building a user base in these countries gives developers an opportunity to take on larger Asian markets, such as Japan and China. For foreign developers seeking to enter Asia’s app ecosystem through Taiwan, success is not guaranteed, but Taiwan is certainly an app market worth exploring further.
http://www.bnext.com.tw/article/view/id/40095