TRD Issue 30 - Insight: The Strategic Potential of Super Apps

Hello Subscribers,

Super apps seem like a natural progression, given the unique social and economic vibes in this part of the world. These apps are like a Swiss Army knife, packing a bunch of different utilities all in one place, making our lives much easier.

In this issue, we focus on the trend of super apps, with a particular emphasis on big players such as Grab and GoJek. Moreover, POYA, a chain store that offers beauty, personal care, and daily merchandise, has been making waves in Taiwan with its unique version of a super app, with the support of 91APP.

Happy reading!

The Retail Direct

About 91APP

Founded in 2013, 91APP is the premier OMO (online-merge-offline) SaaS company, providing one-stop omnichannel retail solutions in Taiwan, Hong Kong, and Malaysia. It offers advanced Commerce Solution and Marketing Solution that enable retail brands to penetrate the D2C (Direct-to-Consumer) e-commerce market and drive their operational benefits to their full potential. In 2021, 91APP became the first SaaS company to be listed in Taiwan and has been named one of Taiwan's "NEXT BIG" companies by Startup Island TAIWAN.

For more information about 91APP (TWO: 6741), visit www.91app.com.

Introduction

Imagine a platform where you can chat with friends, make a video call, book a ride, and even shop for your favorite products, all in one place. This is precisely Elon Musk's vision for Twitter, drawing inspiration from the success story of WeChat, the epitome of a super app. With over a billion active users and many mini-programs offering services, WeChat has set a benchmark in the industry.

Musk envisions X evolving into a global communication hub where connecting with people worldwide becomes a breeze. The first step in this transformation is the introduction of voice and video call functionalities, accessible across various devices, without even the need for a phone number.

This move is seen as laying the foundation for a new business model, where X morphs into a one-stop solution, fulfilling a myriad of user needs. This promises a seamless user experience and opens new avenues for businesses to innovate and create fresh revenue streams.?

What is a Super App?

In the digital era, the term "Super App" has emerged as a revolutionary concept, particularly prevalent in the Asian market.

According to A16Z, “A super app is an application that builds upon its core functionality to mix and mash a bunch of seemingly unrelated services — but ones the user would need or want to do anyway — into one place.”

This integration creates a comprehensive lifestyle ecosystem, allowing users to fulfill various needs without juggling multiple apps, simplifying and enhancing the user experience.

The inception of super apps can be traced back to platforms like WeChat, which has set a global benchmark with its extensive range of services encompassing communication, video conferencing, maps, social communities, payment systems, and a plethora of mini-programs. This approach has fostered a massive user base and created a vibrant app ecosystem that caters to over a billion active users monthly.

Despite their immense popularity and success in Asia, the concept of super apps has yet to be widely embraced globally, particularly in Western markets. Factors such as stringent financial policies, dominant control of operating systems by giants like Google and Apple, and strict anti-monopoly and privacy regulations have played a significant role in this restrained growth.

For users, this means a more streamlined and efficient daily routine, with a single app catering to a multitude of their needs, saving them both time and effort.

South East Asia Super Apps

Talking about super apps, we can’t forget Southeast Asia, where local tech giants widely adopt the concept. Grab and GoJek have successfully integrated various services into a single platform, revolutionizing how people manage their daily activities.

Grab

Grab started as a ride-hailing service but quickly expanded its offerings to include food delivery, financial services, and hotel bookings. Its seamless integration of these services has provided convenience to users and fostered a loyal customer base that appreciates the ease of having multiple services at their fingertips.?

Its seamless integration of these services has provided convenience to users and fostered a loyal customer base, with over 187 million downloads in Southeast Asia as of 2020.

GoJek (GoTo)

Similarly, GoJek (GoTo) has carved a niche in the Indonesian market.?

Initially a motorcycle ride-hailing service, it has blossomed into a multi-service platform, offering a range of services from food delivery to digital payments and even on-demand beauty services, catering to millions across Indonesia.

The Taiwanese Trailblazer: POYAs Digital Transformation

In Taiwan, the retail sector is just a little behind in embracing the super app wave.?

Take the case of POYA, a successful store chain that offers beauty products, personal care items, and everyday essentials. With over 250 physical stores and 6 million members, POYA has expanded into the digital space by introducing POYA PAY for payments and POYA Buy for online shopping. These initiatives have strengthened customer relationships and encouraged loyalty.

POYA is now gearing up to integrate these two apps, collaborating with 91APP to create a unified platform encouraging offline consumers to shop online. This integration is expected to drive a significant increase in consumer contribution, with an OMO (Online Merge Offline) consumer contributing four to ten times more than a single-channel consumer.

With the super app, the POYA app offers three major functionalities in one platform: membership, payment, and e-commerce. This strategy allows for a more cohesive and integrated retail approach and seamless online and offline sales growth and retention. This strategic move will foster increased customer loyalty and boost revenue growth, solidifying POYA's foothold in the digital retail space.

In addition, POYA can now use digital advertising and automated marketing tools to connect with its offline members, enabling quick and efficient communication. The effectiveness of marketing and advertising efforts can be tracked through a comprehensive system, whether purchases are made online or offline.

Overall, the launch of the super app aims to strengthen the connection between online and offline traffic, supporting POYA's direct-to-consumer (D2C) strategy within an Online-Merge-Offline (OMO) framework.

Conclusion

As we conclude, the super app concept is not just a passing trend but something that will transform the digital landscape in some regions.?

Businesses now realize the potential of merging different services into one platform, providing users with an all-in-one solution to their various needs. Observing how this idea progresses will be fascinating, potentially creating a new digital convenience and creativity era.

As we approach the brink of the digital revolution, we welcome your perspectives and ideas on this ever-changing phenomenon. Subscribe for further news on our upcoming publications as we delve deeper into retail technology.