Kuaishou announced that it generated over CNY 100 million in sales volume from the goods sold on its platform during a three-day-long online shopping festival.
Image: Credit to Priscilla Du Preez on Unsplash
Kuaishou (快手), a Chinese short-video platform, announced the sales boost following, the so-called "Reliable Goods Festival" on 28-30 of August. With its 300 million DAU, currently, the company shares the biggest portion of China's bourgeoning short-video scene with its competitor Douyin (抖音), the short video product of Byedance (字节跳动).
Kuaishou App's differentiates from Douyin somewhat – Kuaishou is a live-streaming, focused short-video company, whereas Douyin stresses more on straightforward short videos.
Kuaishou has long been pulling out revenue from the goods sold on its platform via its organic users and Key Opinion Leaders (KOLs). Yet, their latest "Reliable Goods" invention has proven highly effective. Those reliable products have achieved a conversion rate of almost 100% higher than ordinary goods, claimed the company.
The sales process starts with the video. The user typically promotes the goods with a knowing or otherwise comic concept, directing the viewers to a TMall (天猫) link. Assuming that the company gets 6% from each product sold, it should generate CNY 2 million per day, the equivalent of around USD 280,000.
Compared to its competitor Douyin, Kuaishou attracts more users from the lower-tier cities of China. The fact that the acclaimed higher-quality "reliable goods" brought higher conversion rates may imply increasing disposable income figures for those who belong to the lower-middle-income group.
The Tencent-backed company has been expanding its operation network fast, and is neck-and-neck with Douyin within the mainland, yet the company has not fared so well in overseas markets.
Meanwhile, TikTok, ByteDance's overseas short-video product, is sweeping through several emerging markets, including Turkey, Brazil, Russia and Indonesia; Kuaishou recorded a huge loss for its business outside China. The company has been unable to compete with its rival around the globe.
The company could be valued USD 18 billion, The Information speculated.
"Kuaishou's overseas development team was not well-built compare to ByteDance's," said a person familiar with the matter.