Kuaishou (also known as Kwai in some regions) is a popular Chinese video-sharing platform and social media app. It was launched in 2011 and has since become one of the largest and most popular social media platforms in China, with a particularly strong user base in smaller cities and rural areas.
On Kuaishou, users can create and share short videos, typically featuring themselves or their everyday lives. The app also has various interactive features, including live streaming, challenges, and virtual gifts, which users can send to their favorite creators.
In addition to its core video-sharing function, Kuaishou has also expanded into other areas, such as e-commerce, gaming, and entertainment. It has a strong focus on user-generated content and has a loyal user base, many of whom use the app as a primary source of entertainment and connection with others.
410 billion CNY in GMV predicted for Kuaishou e-commerce in 2022
Kuaishou e-commerce is predicted to generate a gross merchandise value (GMV) of 410 billion CNY in 2022, a year-over-year increase of 26%. This growth is supported by Kuaishou’s solid user base, with an average of 626 million monthly active users in Q3 2021, a 9.3% increase from the previous year. Kuaishou’s monthly active buyers have exceeded 100 million, experiencing nearly 40% year-on-year growth. This exceeds the company’s target for monthly active buyers. While GMV is an essential metric for Kuaishou e-commerce, the platform also tracks the number of monthly active buyers as a key indicator of its e-commerce user base. As Kuaishou continues to expand and deepen its e-commerce offerings, it is likely to see further growth in GMV through the contributions of these new users.
What’s holding back Kuaishou’s e-commerce growth?
Kuaishou e-commerce has seen steady growth in recent years but has yet to achieve the same breakthrough as competitors like Little Red Book and Bilibili. Factors such as corporate culture and organizational efficiency may play a role in this slow development, but the core issue is the quality and availability of products. Kuaishou’s supply chain and control over goods need to be improved, a common challenge faced by content platforms transitioning to e-commerce.
Before the annual Double 11 shopping event, Kuaishou restored its connections with the Taobao Alliance and JD Alliance, and the positive impact on its e-commerce ecosystem was clear. Kuaishou’s stock-keeping units (SKUs) increased after the outbound links were restored. However, relying on outbound links is not a sustainable solution for expanding product categories. To build a complete e-commerce ecosystem, Kuaishou must address weaknesses in its supply chain.
In its third-quarter financial report, Kuaishou made it clear that fully developing e-commerce and improving the quality of its products is a top priority.
Boost live broadcast e-commerce with accelerated development
Kuaishou briefly tested a shopping mall channel in August 2022 but took it offline again shortly after the Double 11 shopping event. The plan is first to improve the company’s understanding and control of goods and cultivate user behavior and market awareness for merchants and brands before relaunching mall services when these capabilities mature.
In the meantime, Kuaishou has been focusing on the growth of its live broadcast e-commerce. The Kuaishou industry has seen a recent surge in live broadcasts, and Kuaishou e-commerce has announced plans to support 1000 new merchants and 100 new broadcasters who reach one million GMV.
Welfare policies have attracted more manufacturers to Kuaishou, but the company still faces the challenge of sustaining this growth in the long term.