Tik Tok’s struggles to control the Indian market, and it just touched the primary roadblock. This week, the Indian govt. said that it will ban the Tik Tok app and several other Chinese popular mobile applications, including UC Browser (mobile browser) and WeChat (messaging application), by saying that these Chinese apps have threatened the integrity and sovereignty of India.
TikTok’s parent company could “miss out on another 100 to 150 million first-time installs of TikTok in India” in the second half of this year because of a ban from the Indian government, according to one analyst https://t.co/w0WNNCg5Gs
— CNN (@CNN) June 30, 2020
Reporters said that all these actions are performing due to disputed border clashes between the two most populous countries earlier this month, which caused twenty Indian soldiers to die over that skirmish.
India is the biggest market of TikTok
Although, Tik Tok, one of the leading Chinese apps, has to face a lot of destructive maneuver in the second-most populous country of the world. According to Sensor Tower, the analytics company, Tik Tok, has acquired most of its users form India because Indians are the significant driver of the Tik Tok downloads. Moreover, India has generated approximately 660 million installs until now since the launch of Tik Tok in 2017.
Sensor Tower’s analyst, Randy Nelson, said that parent firm ByteDance could lose another 100 million to 150 million installs of the app first time in India, in 2nd half of the year due to the ban.
Eurasia Group’s analyst, Akhil Bery, said that the restriction even demonstrates a primary complication for ByteDance and several other firms that are struggling to get the advantage of India’s internet boom.
On Monday, in a research note, Bery described that with only around fifty percent of Indian consumers online, the market of India demonstrates a huge amount of growth potential. He added that now that has apparently been cut off and it’s unlikely the government of India will move back these bans.
He continued that it remains ambiguous when the restriction will get the effect and how extensive it could last. He noted that the govt. of India has now to clarify that how it aims to implement the ban, or whether it decides to ask the Apple and Google Play stores to eliminate these apps. Moreover, he added that there is no sign that the Indian government plans a more sweeping struggle, such as contacting telecom operators to restrict the traffic linked to these apps, which would also a difficult way to implement.
Here ban simply means the potential damage of advertising income for the parent company ByteDance. Furthermore, the crackdown even adds another Chinese app, Helo, which has launched in India. The ban will not allow the firm to take even a single slice of digital advertising profit in India.