One of the segments that has picked steam significantly is the online gaming industry. If you, too, are exploring this market seriously to start an online gaming company, then here are some points to consider before getting started.
India houses the world’s largest youth population. Reason enough that it is gradually becoming a hub of innovation and technological advancements. One of the segments, against this backdrop, that has picked up steam in the last few years is gaming.
According to a report by Mordor Intelligence, the Indian gaming market was valued at $1.02 billion in 2020 and is expected to reach $4.88 billion by 2026, growing at a CAGR of 20.83 percent. Moreover, the digital drive under the Narendra Modi-led government has further provided an impetus to this industry.
India has also seen numerous examples of gaming companies and products that have enjoyed unprecedented success and the emergence of more players in this market.
If you, too, are exploring this market seriously to start an online gaming company, then here are some points to consider before getting started.
It is paramount to research the market well in order to get an idea of what you are venturing into. Starting any business requires a lot of things but it is important to get your fundamentals right. For instance, answering questions like – How big is the market? What is the growth potential? What are the risks and dangers involved? – can help you target your efforts concretely.
In addition, it is also important to gather data on how the market functions and the mindset of your potential customers. Conduct surveys, understand the existing gaps in the market, and then work on bridging them.
Building a team
Merely hiring people is not enough. As an entrepreneur, you also need to analyse what these individuals bring to the table? For a gaming business, you need to hire knowledgeable and technology-obsessed people who can keep up with the ever-evolving dynamics of this industry. Additionally, they must have knowledge about coding, a creative bent of mind to make the application/website exquisite. Moreover, look for individuals who have experience in this industry.
Remember you are serving a market that plays games through numerous means such as computers, mobile phones, laptops, consoles, and more. So, hiring employees who can build a solid backend is one of the secrets to succeed.
Keep legalities in check
Before starting a business, give a thorough read to the legal framework in the country. Ensure that you don’t miss out on compliance and other policy-related instructions. Within the gaming industry, keep a check on the games that are permitted so that you can develop a positive reputation and become a well-trusted brand in the market.
Choose a payments setup
What is the quickest way to earn the trust of your customers? Features apart, make sure your payments are fast, transparent, and convenient. A customer who shares his or her financial data with you expects his data to remain secure. Finding a fintech payment gateway that has a good track record and offers multiple modes of payment is a must-have before starting an online gaming business.
Additionally, your gaming website must include a strong defence system including firewalls and other safety measures to keep hackers, frauds at bay.
Beware of competition
The online gaming segment in India is becoming highly lucrative. With the reduction in data costs and proliferation of the internet, it is not difficult to fathom why users are getting attracted to online gaming. Today, this landscape may have a few players but that is not the case with the times to come. To survive in this market, you must be agile enough to keep a tab on your competitors, the evolving market dynamics, and more.
Having a sound marketing strategy
It is no secret that marketing and social media is the key to taking the business off the ground and helping you attract your first set of 100,1000 or 10,000 customers. A network of gaming enthusiasts, social media influencers and SEO can help you grow the number of users who visit your site. In addition, in order to reach out to the target audience, gaming start-ups can also explore brand collaborations. Also, strategize around creating good content for social media platforms for organic reach and paid promotion.
Focus on retention & growth metrics
To keep your number game strong, focus on retaining customers. Having a decent repeat customer percentage also balances out your customer acquisition costs. According to Marketing Metrics, building a relationship with customers is highly rewarding. Data driven approach to retain users shows a profound increase in revenue metrics. So, use various methods like offers, discounts, and more to keep your customers hooked to the products you are offering. Ensure that your growth metrics are tracked regularly to understand how the customers are responding to your variety of games.
Views expressed above are the author’s own.
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