Monday, April 8, 2013

Mobile chat producers buzzing over Indonesian market

Chat-happy Indonesians are leading the way with mobile chat applications. In a few months, three of Asia’s top chat applications have made their formal introduction onto the market by launching intense campaigns to garner more users.

In January, China’s Tencent Holdings Ltd. collaborated with Indonesia’s media conglomerate, MNC Group, to formally introduce WeChat.

As with other applications, WeChat is a cross-platform mobile chat application (app) downloadable for free from various app stores such as Google Play store, BlackBerry World and Windows 8 store.

Martin Lau, president of Tencent, said that Tencent was drawn to Indonesia for the “obvious reasons”. “Like many other international companies, we see great business opportunities in Indonesia because of its vast size and population on top of its youthful energy and great economic growth,” he said.

The “less obvious reasons”, Lau added, was that the country could “benefit from the more rapid adoption of Internet technology”.

“WeChat, as our flagship product, will be part of the first wave of products in mobile Internet in this country, which has a large mobile population that has leapfrogged into the mobile Internet era,” he said during the launch of WeChat.

LINE, a mobile chat application created by NHN Corporation, the leading Korean Internet company, has already preceded WeChat into the market. Simeon Cho, the general manager for LINE, said that the fact that “Indonesians love to chat and do social things” was a big attraction for chat application companies.

“Chat applications can therefore be killer and key applications in smartphones. And as the number of smartphones increase, so will chat application usage,” he told The Jakarta Post.

He added that the number of daily downloads in Indonesia ramped up 60 times within a year by the end of 2012. “Looking at the current pace of growth, we could have more than 20 million users in Indonesia by this year, we will keep on increasing our number of users and aim to achieve critical mass by July,” he said.

The most effective way to garner new subscribers remains through traditional television commercials.

Kate Sohn, vice president of global business development with Korea-based Kakao Talk, said that the company hit 120,000 new registered users daily in the first week of April, following the launch of their advertising campaign.

“Just one week after we began to air the television commercial, starring [Korean artists] Big Bang and [Indonesian artist] Sherina Munaf, our growth was nearly 3,000 percent compared to the pre-television commercial period,” she told the Post.

She added that Indonesia was the third largest market for Kakao, but was number-one in terms of growth. “This is why Indonesia is special for us,” she said.

But how do these apps make money given that they are available for free download? Cho said that under LINE’s business-to-business scheme, brands could obtain official accounts — a step made by Thai Airways — through which brands could connect with their followers, in addition to marketing their products and services.

He added that under their business-to-consumer model, LINE sold special edition stickers — or emoticons — to users.

Sohn said that Kakao, in collaboration with game developers, sold games through the Kakao platform. Profits were then shared with the developers. (

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