From scrolling through TikTok to snagging deals on Shopee, Filipinos are embracing Chinese apps like never before. A new study revealed that the Philippines is a global hotspot for these apps, raising questions about both the benefits and potential risks of this digital revolution.
A recent study by Adjust and Sensor Tower, "Chinese Export Apps," showed the extent to which these apps have permeated daily life in the region, particularly in the Philippines, where 21 percent of all app installs are Chinese-developed. This places the country among the top markets worldwide for Chinese app adoption.
The study highlighted the diverse ways Chinese apps are transforming user experiences through gamification, AI, and personalized content. From entertainment and social media to finance and utilities, these apps cater to various needs and preferences. In the Philippines, popular Chinese apps include TikTok, Shopee, and SHAREit.
"The rapid rise of Chinese apps worldwide underscores their influence in reshaping digital user experiences," says April Tayson, Adjust's Regional Vice President for INSEAU. "Looking at how these apps have deeply integrated into our daily lives, their momentum shows no signs of slowing down."
Southeast Asia's dominance
The Philippines is not alone in its embrace of Chinese apps. The study showed that Southeast Asia as a whole leads the world in the install share of these apps across various categories. Vietnam, Cambodia, and Indonesia dominate the utility app sector, while Singapore leads in entertainment app installs. When it comes to gaming, the Philippines and Indonesia are just behind South Korea.
Interestingly, Malaysia has the highest install share of social apps globally, followed by Indonesia, Vietnam, and the Philippines.
Growth and concerns
The study revealed substantial growth in Southeast Asia’s finance and shopping app sectors. In the third quarter of 2024, the installs of finance apps surged by 88 percent year-over-year, with session usage increasing by 70 percent. Meanwhile, shopping app installs recorded a remarkable 184 percent increase; however, session time declined by 18 percent.
Despite the rise of Chinese apps, concerns persist. Data privacy remains a crucial issue, particularly due to China's national security laws, which may compel companies to share user data with the government. This has raised anxieties globally, including in the Philippines, about the potential misuse of personal information gathered by these applications.
Carlos, a marketing professional in Manila, uses Chinese apps like Shopee, and TikTok daily for their convenience. However, recent news about data privacy has raised his concerns about the possibility of his information being accessed by the Chinese government. "I didn't think about where my data was going," he admits.
While he's not ready to delete the apps, he has become more cautious by checking app permissions and limiting the information he shares.
Looking ahead
Despite these concerns, the future of Chinese apps in the Philippines and Southeast Asia looks bright.
For Chinese developers, understanding the cultural nuances of the region is crucial for continued success. Moving beyond simple language translation to embrace "culturalization" – integrating local values, addressing regional needs, and resonating with cultural elements – will be key to building trust and loyalty among users.
"These insights and data from our study will not only optimize marketers' current strategies but also arm them with learnings from the success of Chinese apps in SEA to drive growth within their own digital offerings," adds Tayson. "The adoption patterns seen here are invaluable for marketers looking to gain valuable insights into user preferences and engagement habits."