Koo, the Indian social media app that rocketed to fame during the 2021 government dust-up with X (formerly Twitter), has shut shop, adding another name to the growing list of “me-too” brands that started their innings with a bang and went down without a whimper.
Positioned as a potential Twitter slayer, Koo was ready to capitalise on the wave of economic nationalism, but fell victim to the classic trap of the imitator — failing to put together a unique offering to hook the fickle consumer. Experts say that Koo’s demise serves as a cautionary tale for the legions of “fast follow” apps —that mimicry is a recipe for fleeting relevance, not lasting success. “Koo’s collapse isn’t just about one brand failing,” says Somdutta Singh, founder & CEO of Assiduus Global, and a former member of Niti Aayog. “It’s a lesson for brands everywhere that chase trends instead of building something with staying power, something that can endure even after the founders are gone.”
Singh argues that Koo tried to bank on user dissatisfaction with Twitter. The platform positioned itself as “anti-Twitter”, but negativity can take you only so far. Maybe because of lack of funds, Koo failed to innovate or offer anything unique.
A host of other brands have failed for similar reasons. Yasin Hamidani, director, Media Care Brand Solutions, cites Hike Messenger, which was launched in 2012. “Hike was positioned as the Indian alternative to WhatsApp, offering features like stickers and offline messaging. Despite initial popularity, Hike couldn’t keep up with WhatsApp’s dominance and pivoted to Hike StickerChat before shutting down completely,” he says.
Tencent’s WeChat fell — literally — in the same league. It tried to capture the Indian market as an alternative to WhatsApp with features like games and payments. Despite extensive marketing, it couldn’t penetrate deep enough before being banned in June 2020 along with other Chinese apps such as TikTok.
So is it only brands that shake up categories with a completely differentiated offering that have a chance to survive? What about the umpteen car brands or the many toothpaste brands that might or might not be very different from one another? Or is the you-copy-you-fail phenomenon unique to the tech industry?
Stand up & be counted
The tech industry, says Samit Sinha, managing partner of Alchemist Brand Consulting, is often a winner-take-all game. “Think Google, YouTube, Amazon, Meta, Microsoft, X, Airbnb, Uber… these brands have not necessarily created their respective categories, but have successfully owned them to the extent of becoming almost generic and category defining.”
This is usually not the case with old economy categories, which are able to accommodate several successful brands through meaningful segmentation and sharply differentiated positioning. Tech is more unforgiving, he says. Take Namaste Bharat, launched as an alternative to TikTok after its ban in India. Despite the initial surge in downloads, it struggled to compete with the likes of Instagram Reels and YouTube Shorts and faded away.
Now consider Colgate’s foray into Ayurvedic products like Vedshakti to take on players like Dabur and Himalaya or even Patanjali’s Dant Kanti toothpaste. The Vedshakti toothpaste has been able to hold its own amid competition so much so that the company extended the brand to a first-of-its-kind Ayurvedic mouth spray. “It’s ironic,” says Nisha Sampath, managing partner of Bright Angle Consulting, “when you consider that Colgate entered the Indian market as an antithesis to traditional tooth powders, which included Ayurvedic formulations.”
That said, the demise of Koo shouldn’t be a reason to paint all follower brands with the same brush. Many have hit it big by following the category leaders but with a well-rounded offering. Consider the food delivery space. Following the success of giants like Swiggy and Zomato, smaller players like Faasos and FreshMenu emerged and offered a similar core service — food delivery — but with a twist. Faasos carved a niche with its ghost kitchen network, while FreshMenu targeted specific cuisines.
This pattern repeats across industries. E-commerce giants Amazon and Flipkart paved the way for platforms like Snapdeal, ShopClues, and Paytm Mall. Each offered a similar service — online shopping — but added a unique selling proposition. Snapdeal focused on value deals, while ShopClues trained its eyes on small and medium entrepreneurs, helping some to start their own e-commerce websites. Uber and Ola dominate the ride-hailing space, but players like inDrive, Rapido (motorbike taxis) and Jugnoo (auto-rickshaws) have found success by catering to different customer needs.