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30-Jun-2017 07:41

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Line is big in Japan, and it believes its popularity can translate in the U. Line doesn't exactly have one specific feature that stands out.The real power of Line is in possibly being the best amalgamation of your favorite communications app, all in one.This means you get the standard free chatting, but you also get: And, maybe best of all, Line is fully cross-platform (and yes, that includes Windows Phone and Black Berry).But, the real aim of Line isn't just to offer you a great messaging service (frankly, we found the app UI to be confusing and unintuitive), but also to drag you into the whole ecosystem of Line apps and games.'Active' users describes people who are actively using the app, while registered users refers to the amount of people who have downloaded it.Fans say the app's cutesy stickers, often depicting baby animals and oversized emoticons, together with its games, are central to its appeal.Macquarie's Shao said breaking into completely new markets could prove a challenge for Line, though he noted that it would be a challenge for every player in the space."If you don't compete as well, for whatever reason - it could be that you are not spending as much marketing dollars or you are not targeting the right users - that's the risk from the growth forecast perspective.

Free messaging service Line has taken Japan by storm over the past few years, but can the company, which is posing a very real threat to the hugely popular Whats App, continue to expand at such a rapid pace?"If you are dominant in Japan, fine, but in order to grow further you may have to go to the Middle East or Indonesia.In these types of markets you are competing with either the entrenched guys or the other players," he said.There is no doubt that Line has enjoyed huge success in Japan and other global markets, but analysts told CNBC the firm could face challenges moving into markets where its brand presence is not as strong as its competitors.

"The main risk [to Line] is through the competition, from a growth perspective," Jiong Shao, regional head of internet research, at Macquarie Securities, told CNBC.

Gaining traction in a market where the brand is relatively unknown can be an issue for free messaging service providers, as they rely so heavily on 'word-of-mouth,' analysts told CNBC.



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