The short video giant is eyeing opportunities in China’s second- and third-tier cities
Tik Tok’s Chinese rival Kuaishou (01024: HK) announced in April the establishment of consumption and real estate business centers in an internal letter. Xiao Gu, head of Kuaishou’s e-commerce unit, supervises the new teams.
The consumption business center takes charge of local life services including restaurants and hotels. Kuaishou has recently kicked off a recruitment plan of more than 200 food and entertainment service providers in four lower-tier cities including Shenyang, Harbin, andChangchun in northeastern China, and Shijiazhuang in southern Hebei Province.
The real estate arm is tapping the housing market through live streaming. Kuaishou cooperates with property developers for exclusive discounts and sells the houses in the live broadcast. A mini-program named “Kuaishou Ideal Home” (Chinese: 快手理想家) has been launched with housing information in 16 second- or third-tier cities.
Kuaishou is left with huge space to grow, as other brokers like China’s largest housing transaction platform Beike Zhaofang (Chinese: 贝壳找房), or house seeking, target mainly first-tier cities like Beijing, Shanghai, Guangzhou, and Shenzhen.
Kuaishou’s e-commerce unit posted a gross merchandise value (GMV) of CNY 680 billion (USD 101 billion) in 2021, up 78.4% year on year.