In the present mobile internet era, tons of applications not only meet various needs of netizens, but also provide them with lots of ways to find out more about both the world and themselves. Offering advice to entrepreneurs seeking a slice of the market is a recent report on the trends in mobile apps in the first half year of 2017 published by 360 Mobile Assistant, one of the top Android app stores in China, which is owned by Qihoo 360 Technology. 

The report found that 54 percent of the top 50 apps in the 360 app store feature quality content and strong social interaction. It concluded that the length of time users spend on an app is what concerns developers most. Not long ago, however, many app developers were competing just to gain a larger number of users.  

In China, a total of 724 million people now access the internet via mobile phones, accounting for 96.3 percent of the online population, according to the 40th China Statistical Report on Internet Development, released by the China Internet Network Information Center (CNNIC) in early August. 

"Current users have got used to upgrading their mobile phones every year, or even more frequently. That's a phenomenon caused by the demographic dividend," said Yang Zichao, an IT entrepreneur who has eight years' experience as a product manager. 

"The existence of the demographic dividend in the smartphone market means there is still an incremental market in which customers are satisfied just to have a phone, regardless of its functions. But now, more-knowledgeable customers have far higher expectations," Wang Jiwei, a commentator on Internet business, told Beijing Review. 

"The demographic dividend is disappearing," said Meng Qiyuan, Vice General Manager of 360 Mobile Assistant. "For startup entrepreneurs, it's harder to gain more users, and the competition is getting fiercer. Meanwhile, as the market cools down and customers become more rational, the product's quality decides its market [success]." 

So, how can app developers win market share in such a competitive environment? Wang prioritizes the user experience. "One characteristic or even one function can lead to consumer loyalty. Quality content and strong social interaction can bring high user activation. However, finding good content and targeting [the right] users is the difficult part." 

Meng thinks that entrepreneurs should target specific user groups and not compete for market segments already occupied by large companies. "People are categorized into different circles by their characteristics. App developers should target different circles by understanding their needs and providing professional advice in various areas, thus increasing the time users spend on the products," he told Beijing Review. 

Copyedited by Chris Surtees 　　 　　

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