Google Play plans to return to China, but users may not be interested

Photo credit: Michał Ciupa.

A couple of weeks ago, tech news site The Information reported that Chinese internet company NetEase was in talks with Google to introduce the tech giant’s Android application store Google Play to the Chinese market.

Though neither party has admitted any ongoing negotiations, this is regarded as the latest update in Google’s long-term effort to return to the consumer market in China. Eric Schmidt, the chairman of Google’s parent company Alphabet, has addressed the necessity of finding local business partners to facilitate communication with regulators in China on various occasions.

NetEase, the other protagonist featured in the rumor, is one of the earliest existing internet companies in China, and a survivor of the dotcom bubble of 2000. At the same time, after Alibaba’s acquisition of independent app store Wan Dou Jia in July, it’s one of the very few top internet service providers in China that doesn’t own a major app store. This situation has created an immense incentive for both parties to sit together at the negotiating table.

However, unlike the global market where Google Play takes an almost dominating position, China’s Android app store market has been divided up by local players in Google Play’s years of absence. Third-party app stores backed by the BAT club and local smartphone manufacturers have become the go-to place for users.

Considering the situation, how much of a chance does Google Play have to change the status quo? And what will Google Play’s entrance mean to developers inside and outside of China?

Tencent, Qihoo 360, and smartphone manufacturers lead the market

Based on app downloads, Newzoo and TalkingData rankings show that Tencent’s Myapp leads the current Android app market with 24.42 percent of the market, followed by 360 Mobile Assistant (affiliated with Qihoo 360), and Baidu Mobile Assistant.

The next three app stores belong to Chinese smartphone manufacturers Xiaomi, Huawei, and OPPO.

Google Play comes seventh with a 4.42 percent market share spread among niche users who managed to bypass existing restrictions or those with phones that have the store already pre-installed.

Wan Dou Jia, the app store acquired by Alibaba, and an app store owned by smartphone brand Vivo are also in the top 10 list, each with less than 5 percent market share.

Tencent Myapp’s leading position largely follows from Tencent’s massive user base. Its two killer social applications, WeChat and QQ, each have over 800 million monthly active users, according to Tencent’s latest financial release.

360 and Baidu Mobile Assistant also benefit from their other signature products, 360’s anti-virus software and Baidu’s dominant search engine. Just like Google in the global market, the success of these app stores stems from the success of their entire service suites and not from the success of isolated cases.

Google’s efforts to reinforce its impact

Who’s on Team Google?