HONG KONG • The maker of TikTok is preparing to roll out a Google-like suite of office collaboration tools as soon as this month, according to people familiar with the plans, as it works to expand beyond short-video sharing.
ByteDance became the world's most valuable start-up on the strength of its viral consumer apps such as TikTok and news aggregator Toutiao, but in April last year it quietly released a remote-work app called Lark (Feishu in China) that combined elements of Slack, Dropbox, Google Docs and Skype.
The company is now preparing an overhaul of the app with a focus on cloud-based file management and document and spreadsheet editing a la Google's G Suite. The roll-out will begin in China, said the people, asking not to be named as the matter is private.
The global market for collaborative apps grew from US$14.8 billion (S$20.6 billion) in 2018 to US$16.5 billion last year, according to International Data Corporation data. Even with strong incumbents such as Microsoft and established players like Slack Technologies, it has room for growth and ByteDance has the added incentive of a sudden spurt in demand in its home market.
The coronavirus outbreak has pushed millions of Chinese workers out of offices and into the realm of video conferencing, messaging and other online tools to keep business going.
DingTalk from Alibaba Group Holding was the most downloaded free app on China's iOS App Store for weeks, followed closely by Tencent Conference.
Though free to use, these apps help their parent companies keep users locked within their respective ecosystems, which is why Tencent Holdings is upgrading its work apps such as WeChat Work in the present lockdown period, helping teachers as well as workers.
ByteDance has responded swiftly to soaring demand. Last month, it offered enterprise users its premium Feishu functions for free during the outbreak.
That helped it record a daily peak of more than 22,000 downloads on Apple's iOS App Store across China, according to Sensor Tower.
The company also launched a standalone video conferencing app called Feishu Conference.
Though tiny compared with leading firms, ByteDance's presence has been deemed a threat, at least by Tencent, which has reacted by blocking the sharing of links to Feishu on its WeChat app, just as it already does with ByteDance's mini-video platform Douyin, TikTok's Chinese twin.
ByteDance has taken a number of steps to diversify its revenue sources. It is testing the music-streaming waters with a service called Resso in emerging markets, and has plans to launch a big push into mobile gaming with its own development studios this year.
Collaborative apps are just another avenue promising long-term growth.
"The enterprise software market in China is lagging the United States by at least 10 years. It has a long way to go in terms of market acceptance and willingness to pay," said Mr Eric Ye, co-founding partner of Eminence Ventures, a Shanghai-based investment firm focused on the industry.
"The Chinese giants want to do everything. If they have found one area where the business model is proven, everybody wants to get in on the act, copying and competing with one another."
BLOOMBERG
