1,000 Trillion App Market... Embedding the Unique DNA of 'Galaxy Store'

Samsung Declares Leap to Global Platform
Discount Strategies for Game Content
Customized Regional Services Overseas
Competition with Google and Apple

[Asia Economy Reporter Cha Min-young] "We provide differentiated content exclusively for Galaxy users."

Kim Gyusik and Jung Jaewon, pros from Samsung Electronics' Wireless Business Division Service Biz Team, who are in charge of operating Samsung Electronics' own application (app) market, 'Galaxy Store,' cited the 'Galaxy DNA' as the strength of Galaxy Store in an interview with Asia Economy on the 4th.

An app market is a space where developers and users trade mobile content, and app market operators handle mediation and management. Market research firm Statista estimated that the global mobile app market size, including downloads and advertising revenue, will reach $935.2 billion (about 1,038 trillion KRW) in 2023. Last year, it was $581.9 billion (about 646 trillion KRW).

Pro Jung said, "Since every app market has its own characteristics, multiple platforms are necessary to increase user benefits," adding, "If only one company or service exists in a particular market, it can limit consumer experience." The app market landscape, which was once dominated by Google's 'Play Store' and Apple's 'App Store,' is changing. Developers have risen against the abuse of market dominance by the top two companies, such as high intermediary fees and mandatory in-app payments, increasing the need for a third app market.

Samsung Electronics Wireless Business Division Service Biz Team's Pro Kim Gyusik and Pro Jeong Jaewon cited the "Galaxy DNA" as the strength of the Galaxy Store in an interview with Asia Economy on the 4th.

Giving Android users to Google Play, which uses the same operating system (OS), is a painful point for Samsung Electronics. Google's app market share (MS) is estimated at 85%. Measures were also needed to counter Apple, a rival smartphone manufacturer. To this end, Samsung Electronics revamped the Galaxy Store service in 2019 and declared a 'global platform leap.' Pro Jung said, "Since the service name change two years ago, we have seen significant growth in store usage and sales."

Galaxy Store focuses on game content and offers various consumer benefits and discount strategies. Currently, it is running a promotion that provides a 10% discount when purchasing paid items in some game apps linked with Samsung Pay. It also supports Galaxy device-exclusive themes, fonts, apps, and content exclusive to the smartwatch 'Galaxy Watch.' For developers, it offers joint marketing and Galaxy device optimization features. A representative feature is optimizing device battery efficiency when using apps.

To target overseas consumers in 187 countries, it also provides region-specific customized content. Pro Kim said, "We have formed a local organization in the U.S. to develop exclusive business models (BM), specialized features, and operate services tailored to local demand," adding, "In India, we provide specialized content linked with the local popular app market 'App Bazaar' and support all 12 official languages within India."

Despite some criticism, the strict app review method maintained since the early days of the service is still upheld. Currently, about 1 million apps are registered on Galaxy Store. According to Statista, as of the end of March, about 3.48 million and 2.23 million apps were registered on Google Play Store and Apple App Store, respectively. Some in the market have suggested that Samsung should lower the entry barrier for growth. Pro Jung said, "A virtuous cycle where selected good content continuously flows in is necessary for us to steadily grow."

There is speculation that various changes may occur in the future app market industry, from business models to content delivery methods and platform providers. Pro Kim predicted, "The current controversy over mandatory in-app payments may be dismantled, or non-installation content such as cloud gaming may replace installation-type content," adding, "It could also occur in the platform provider area where content companies operate app markets directly."

The future-oriented goal of Galaxy Store is a market where users and developers can freely access content. Pro Kim emphasized, "No matter what changes come, the goal of those in charge of Galaxy Store is to provide the content users want in the easiest way."