It was one decision from the government of India that people were least prepared for? And so on the morning of 30th June 2020 when Sunaina Kamath suddenly discovered that she could no longer use TikTok, it was no less than a shock for her. The Union Ministry of Electronics and IT, on June 29th, banned 59 Chinese apps, including TikTok, citing cybersecurity issues.
It was only a few months back, Sunaina in her mid-20s, had moved from Bhopal to Mumbai, the commercial capital of India. She had also left her well-paying job of an HR professional. In the last two years, she became used to a new social media lifestyle to the courtesy of TikTok, the widely popular Chinese app. As a TikTok influencer, Sunaina had more than 10 million followers, and her motivational videos that featured her mother-in-law and his friend Vineet Mhatre, had become hugely popular. Mhatre too joined her in Mumbai to be a part of the team.
TikTok gave Sunaina a new identity and a celebrity status, but all of a sudden two years of her life went down in the drain after the government of India decided to ban most of the Chinese apps including the TikTok. For her friend Vineet Mhatre, breaking the news of TikTok ban to his parents was even more devastating. He later recalled that when he shared the news of TikTok ban with his parents, there was an absolute gloom in his family.
Sunaina wasn't the only one; the news came as a shocker for over 1.2 million TikTok creators in India, that included many youngsters from small towns who had found a stable earning opportunities through this app. TikTok was probably the best thing that could have possibly ever happened to them. It was like a talisman of fame and money in just 15 seconds. The earnings from clothing and fashion accessories deals went up as high as INR 200,000 per video. By making these short 30-second TikTok videos, Sunaina could earn almost twice her previous salary as a corporate professional.
Who will inherit the massive TikTok market share?
India was the biggest overseas market for TikTok, accounting for almost one-third of their total worldwide downloads with over 200 million users. Right now, there is a kind of frenzy to fill the void left by TikTok in the Indian app market. In the last over six months, several homegrown apps like Chingari, Mitron Tv, Roposo, CoNnEcTd , and many others have joined the market. Last year immediately after the ban, Indian TV network ZEE announced the launch of a new content creation app called HiPi. Sharechat, an Indian social media platform also joined the rat race and made a debut with their short video app, Moj.
There are also non-Chinese apps like a US-based Triller and German Dubsmash that seem front runners to replace TikTok. However, most of these apps faced difficulties in getting a foothold in the Indian heartland the way TikTok achieved through its regional overtures. With rampant joblessness owing to COVID-19, the demand for app developers suddenly skyrocketed. The TikTok ban resulted in a phenomenal surge in traffic for these new apps - sometimes sending servers crashing.
Roposo, which started in 2014 currently leads the pack with about 75 million downloads, and are now aiming at 100 million downloads. However, more than app downloads, what is more important is their ability to retain users. TikTok created a novel business model through highly addictive, short-videos that was easy to consume. The main source of income for content creators was through brand endorsement. Therefore, the main challenge for the Indian app is to find new users, and also retain them, generate volumes, and attract brand partnerships.
TikTok had a massive user base, and brands just followed, while that is not the case with the new players, who would need time to get established. The Indian apps are too trying to find earning avenues for content creators to make themselves more popular.
For example, if a particular video has 100,000 views on Ropso, the creator is paid with a same number of Roposo coins, which is equivalent to INR 100. Bolo Indya, another Indian app has created a private learning room where content creators share their knowledge and can earn money.Although many new players have come in the market, the worthy alternatives to TikTok are still evolving, and it would take at least five-six months for homegrown apps to provide a seamless user experience.