As demands grow for a local app store, analysts see long road ahead

Reports say the govt is planning to launch a homegrown app store providing an alternative to Google Play Store, Apple Store

As demands from the start-up industry grow for a homegrown app store to cut the duopoly of Google and Apple, industry experts and analysts say that it would be a long road ahead to make users switch to an indigeneous platform. They, however, agree that the time is right to start thinking of an 'atmanirbhar' app store as India has the technological know-how to build such a marketplace, though it would require govt’s intervention to create a level playing field for local app stores.

“The Apple and Google app stores are recognised globally as they benchmark themselves to global privacy standards, but it will take an entire ecosystem of OEM hardware to make the adoption of a new OS possible. What we really need is a ground of negotiation with the global app store owners on data policies and payment policies,” said Sanchit Vir Gogia, founder & CEO of Greyhound Research.

It would not be easy to create an app store because the makers will need a collaboration with the Samsungs of the world for deep adoption. “Even if you launch it and if the user doesn’t see any value in it, he won’t install it until there is an incentive. It should either provide apps which are not available at other stores or have a smoother interface,” said Sanjeev Kumar, forecast analyst at Forrester Research India. Interestingly, fantasy sports apps such as Dream 11 are not available on the Play Store.

According to Sampad Swain, founder and CEO fintech start-up Instamojo, with the booming app economy and increasing app usage by consumers, an India based app store is a good idea. However, he says that it is too early to understand how this will work. “The major challenge here will be changing consumer behavior and preferences, with everyone accustomed to using the existing app store options. At the end of the day it depends on the country’s regulatory authorities to take this call, as they will be the best judges for an initiative of this nature,” he said. 

Since Android phones come bundled with the Google Play Store and iPhones come with the Apple store, Gaurav Agarwal, co-founder of 1mg, says, “The government can help on the policy front where it can provide a level-playing field to new app store players whether it is the requirement for applications to have compatibility or allowing full visibility on the phone ecosystem. Else a new app store will not go anywhere.” 

Paytm founder and CEO Vijay Shekhar Sharma along with Yashish Dahiya, group CEO and Co-founder, Policybazaar, Matrimony.com founder Murugavel Janakiraman and Vishwas Patel, founder of CCAvenues and chairman, Payments Council of India are spearheading the campaign for the country to have its own app store. “This is because Google can’t enforce the Google Play billing system and take a 30 per cent commission on the transactions. The movement is more about making India self-reliant and atmanirbhar,” said an official at a homegrown unicorn start-up.

“It is a monopoly by Google, they are arm twisting companies. Small developers won’t be able to pay the 30 per cent charge,” he said. 

Even Razorpay co-founder and CEO recently tweeted that India needs a local app store, else the 30 per cent tax will eat up most businesses. “Is anyone trying to build one?’” he asked on the social networking platform.

Meanwhile, reports said that the government is planning to launch a local app store which would be an alternative to Google's Play Store and Apple Store. It may scale up the Mobile Seva App Store, a government-owned platform supporting Android, Windows phone, Java, iOS applications for this purpose, the report added.

Google recently pulled down the Paytm app from the Play Store temporarily over violation of policies. Food delivery firms Zomato and Swiggy have also paused their sports-based cashback games on their apps after the technology giant sent them notices for violating Play Store policies related to sports-betting activities, which Zomato termed as unfair.

“Companies pay so much to Google because it gives you distribution. There is no other way to get that kind of customer acquisition. Companies like Paytm and PhonePe, which have a strong app play, are not able to acquire new customers in any other way. These large Indian companies can come together and build the app store,” said an official at a major Indian app company, adding it is not going to be easy given the data and technology Google has built over the years.

India currently has a local language OS called Indus OS available in 12 regional languages apart from English. Launched in 2013, it is the world's first regional OS made for smartphones in India and other emerging markets and claims to have over 100 million users. It has partnerships with smartphone players such as Samsung, Karbonn and Micromax for its app store.

A local app store would help regulatory authorities in keeping a better tabs on the kind of apps that are being promoted in India, especially in the context of the situation faced due to the Chinese apps. “Having an Indian hosted app store would always help regulate issues in a much better manner,” said Salman Waris, managing partner at technology law firm TechLegis Advocates and Solicitors.