"For every action, there is an equal and opposite reaction plus a social media overreaction."
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1. The United Kingdom is expected to end the use of Huawei technology in 5G network due to security concerns. Prime Minister Boris Johnson is set for a major policy change after 'Government Communications Headquarters' assessed the risk posed by the Chinese company.
2. Prime Minister Narendra Modi reviewed the progress of agriculture research, extension and education in India and lobbed for promoting startups and agri-entrepreneurs to promote innovation and use of technology in farming and allied sectors.
3. The Centre has issued guidelines for Unlock Phase II, beginning from July 1, with relaxations in night curfew, facilities for more domestic flights and trains, and clearance for more than five people in a shop. Though schools, colleges and other educational institutes will still remain closed till July 31. Find detailed guidelines here.
Billions lost in 7 days...(1/2)
It's been 7 days since TikTok amongst some other Chinese apps were banned by the Indian government due to national security. Yes, you have read a lot about this but in any case, here are some facts that you may have missed on...
1. ByteDance, the parent company of TikTok could lose up to USD 6 Billion.
2. In February 2020, TikTok has reached a total lifetime user spending of USD 300 Million on Google Play and the App Store.
3. In 2019, TikTok was the third most downloaded non-gaming app in the world with over 1.5 Billion downloads. Its original Chinese version Douyin is particularly prominent in China.
4. India was the biggest market for Tiktok, as App analytics firm Priori Data shows that the App was downloaded 100 Million times in India in 2020 so far.
Bytedance's app Tiktok is not only popular among young netizens, but it is also responsible for driving video-makers to stardom, overnight (don't lie, you secretly loved it!). Although, there were many instances where Tiktok did take a slightly controversial note...
Two men in Hyderabad were arrested under 34(A) of the Excise and Prohibition Act after they were found serving liquor to labourers in the lockdown through a video that went viral, revealing their intention to gain popularity on Tiktok.
'Chingari' sparks up...
As Tiktok was banned, Indian App 'Chingari' a rival of Tiktok has taken over the market with 1.1 crore downloads and 70 lakh users every day since the TikTok ban, this has gone up from 5 lakh downloads last month. A user can make money by getting points for each view which can be redeemed on the app.
*This hasn't been sponsored by Chingari, but we will be open to discussions*
Did you know...social media influencers are taking over the advertising world. Influencer led marketing is the fastest-growing segment in Indian society. Tiktok influencers were paid around USD 200 to USD 20,000 per branded video promoted by the companies.
In India, ad spending on social media is projected to reach USD 772 Million in 2020 (these are pre-COVID figures). Even though Tiktok has been banned, there will be a quick transfer of influencers to apps like Instagram/Facebook, where influencer marketing is also extremely heavy.
But did you know big companies are boycotting Facebook...
While companies in India are investing in influencers for branding on social media, big brands in the US and Europe have temporarily suspended 'Facebook Ads' in support of 'Stop Hate For Profit' campaign.
The social network is facing criticism for its inaction over Trump's posts glorifying violence after the death of African-American George Floyd. Companies like Patagonia, R.E.I. and, most significantly, the consumer goods giant Unilever have joined this campaign and boycotted Facebook ads. Brands like CocaCola, Ford, Starbucks have not joined the campaign but have decided to pause Facebook ads.
Facebook's business model relies majorly on ads. According to Statista, in 2019, 98.5% of Facebook's revenue was generated from advertising and stood close to USD 69.6 Billion.
Facebook's stock has gone down by 8%, erasing USD 56 Billion from its market value. The extent to which Facebook's revenue may get affected is yet to be seen. Around 8 Million companies advertise on social media and the most prominent advertisers like Walmart, Disney, Procter & Gamble; have not joined the boycott yet.
Does this concern the Indian Facebook market...?
Nope. With the recent ban of Chinese apps like TikTok, Facebook's position in India is likely to become stronger (and let's not forget about the JIO/Facebook partnership). The Indian unit of Unilever, HUL, stated that the ban of ads on Facebook is only in the States and doesn't apply to India. Usually, social media boycotts have a limited shelf life, they are aimed to make the practices of these giants, cleaner and put pressure on them to revisit their privacy and ads policy. This is not the first time Facebook has come under scrutiny, but definitely the first time it's feeling the loss..(of millions of monies).
The brave new reality of travel... (2/2)
Hardeep Singh Puri, Minister of Civil Aviation, India inspects that the market for domestic flights will be running in full capacity by the end of 2020. Prime Minister Modi has also chipped in and urged people to visit 15 domestic tourist destinations by 2022.
With COVID-19 here to stay, maybe domestic travel will see a surge?
The fad pre-COVID was to take luxury trips abroad rather than in India. This will change, as the borders may not open up completely, and even if they do, the entry would be restricted. People will also choose road trips over air travel, and explore destinations close to their cities.
1. Close Call: People are tired of being indoors and by the end of the year, there will be so much pent up demand for travelling that there will be a temporary surge in travel. This is also called revenge tourism. This will be a short term demand and an extremely competitive opportunity for travel companies to make some money.
2. Panic Attack: This will be a stay local, stay safe tourism. There is a lot of stress of domestic travel and now more than ever people are extremely risk-averse. This attitude of travellers may push local tourism and could be a long-term effect.
3. 'Two seasons, two travellers', describes a scenario where the virus comes back for portions of the year. This leads to consumers able to travel for a part of the year and in lockdown for the remainder. In this scenario, affluent people will have more opportunities to travel.
4. Brave New Reality: Going head-on with the new normal. People who accept COVID as the new normal and travel regardless while taking precautions.
'Travel Safety by fiat', envisages a world where COVID‐19 is a permanent feature but governments step in to manage it with regulation. The scenario would see borders close as and when infection emerges and would mean companies could operate in “a relatively stable and prosperous business environment” but be prepared for restrictions being put in place.
Taruna Seth, Founder and Navigator-In-Chief, Encompass Experiences also discussed these points on the Dialogue Now podcast. Hear now!