WHAT IS KUAISHOU?
Kuaishou is a Chinese video-sharing app, Douyin’s main rival (TikTok abroad). Kuaishou is often referred to as “Kwai” in overseas markets.
The app was born as a GIF creator. Founded in Beijing in 2011, in a few years Kuaishou has become not only one of the most important short video apps in China. Not only one of the most downloaded videos sharing applications but the biggest live streaming app worldwide. By 2019, that figure had surpassed 200 million active daily users.
Kuaishou is one of the favorite apps for the live streaming sector. To date, it is precisely the latter sector that accounts for the largest share of Kuaishou’s annual revenue. In fact, the app registered revenue of $7.2 billion in 2019 only, and more than half of these came from live streaming.
KUAISHOU LEADER OF LIVE STREAMING E-COMMERCE
Kuaishou is a leader of live streaming e-commerce. A striking example is that of the Kuaishou “King of sales”, Xinba, who recorded a sales record of $ 176 million in a single Livestream session.
Kuaishou actively collaborates with all the other major players in Chinese online retail. From Kuaishou it is possible to connect to platforms such as Taobao, Pinduoduo, and JD.com. And it is with the latter that Kuaishou has strengthened the partnership. From 27 May it is in fact possible to purchase JD.com products directly from the Kuaishou app.
KUAISHOU CHINESE USERS: YOUNG AND FROM LOWER-TIER CITIES
Kuaishou has a particularly strong user base among users outside of China’s tier 1 cities.
While most social media is dominated by a small circle of celebrities and influencers, Kuaishou amplifies the voice of ordinary people and their lives. Kuaishou users are mainly young people who come from second and third-tier cities, but also from villages and rural areas of China. Interesting data: 80% of Kuaishou users were born after 1990.
Kuaishou is trying to extend its target to the first and second-tier cities (such as Beijing and Shanghai), this by forming a solid partnership with JD.com, on which this type of user often makes purchases.
KUAISHOU HUGE JUMP DURING COVID-19
Kuaishou reported a huge jump in the number of live-streaming users in the first half of this year, mainly driven by the Covid-19 epidemic that prompted wider use of the service.
The number of daily active users of its live-streaming function has reached 170 million as of June, a surge of 70 million since the end of 2019.
Before the pandemic outbreak, live streaming was only seen as an option for brands to reach Chinese consumers, but now it has become essential. The number of online live streaming service users in China reached 560 million as of March 2020, accounting for 62% of the country’s total number of 904 million internet users, an increase of 163 million since the end of 2018.
WHAT ARE THE OPPORTUNITIES THAT KUAISHOU OFFERS TO BRANDS?
In recent months in the Chinese digital world there has been a lot of talk about Douyin and Kuaishou, and not without reason. The two short video apps, in fact, are climbing the charts thanks to an increasingly large audience. It seems that videos of a few seconds and live streaming are the last frontiers in the world of social networks.
But What are the opportunities that Kuaishou offers to brands?
The popularity of Kuaishou among the public is purely given by the high content proposed and the potential profit that can arise.
Sellers sell users’ attention through short videos and then profit from advertising on their accounts. Additionally, sellers can capitalize directly via live streaming. In this way, it is also easier to turn the attention of many highly active consumers to oneself. The latter, in fact, through live streaming can get closer to the product. On the other hand, sellers can show the characteristics of the different products marketed.
Another peculiarity no less important is that Kuaishou insists on promoting activities related to the traceability of the brand in various sectors, including exclusive events, to increase sales. Finally, it should be noted that Kuaishou connects directly to e-commerce platforms such as Taobao, Pinduoduo, and JD by exploiting the interoperability of the platform.
To summarize, the general advantages of e-commerce video through the Kuaishou app are purely contained in the user scale, shopping guide, product performance, and purchasing experience.
If you are interested in the Chinese fashion market, welcome to CHIC Shanghai.