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Jun 22, 2020 06:20 pm · Zhao Xiaolong's WeChat Moments

WeChat Channel Breaks through 200 Mn DAU Challenging ByteDance

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Jun 15, 2020 12:43 am ·

Global Competition Between ByteDance and Kuaishou: Who Will Prevail?

►A resounding success in international layout for ByteDance has exerted pressure on Kuaishou. ►Finding a way to transfer the large traffic into profit will be the priority in future moves for Kuaishou.  Last week, Zynn, a new short video platform, topped the list of most-downloaded apps in the iOS Appstore. Against the backdrop of the stellar debut of Kuaishou’s Zynn, we can see the war with ByteDance, the developer of TikTok, intensifying. Kuaishou is now focusing on cashback benefits, which are given to every new user via a USD 20 welcome bonus. There is also an extra bonus for referrals. However, such a cash burning strategy in the quest for traffic doesn’t always look like a clever strategy.  Why is Kuaishou so anxious? ByteDance, its largest competitor, started an aggressive overseas expansion in 2017. By the end of that year, the company had spent USD 1 billion to acquire the music video platform Musical.ly. Several months later, the company started transferring users from Musical.ly to its own platform, TikTok. In that crucial year, ByteDance developed a matrix of products, including Hypstar and TikTok. Besides, the company completed other acquisitions: a short video platform, Flipagram, and the mobile news provider News Republic. After this sequence of moves in the US market, ByteDance went on to launch several video products. The company has continued to show a vibrant, exploratory profile.  In order to serve the local market better, ByteDance appointed the former Disney executive Kevin Mayer as the new CEO for TikTok in June 2020.  The success of ByteDance has exerted pressure on Kuaishou. At the same time, Kuaishou has been struggling through an internal reorganization and teething problems within its teams. In 2017, the company went on an extensive campaign to penetrate overseas markets, focusing on Russia, Thailand, and Indonesia; things didn’t go as expected. Russia, the first layout for this exploration, saw the brand win the market by handing out cash bonuses, then falling silent after the benefit ended.  This strategy has been done to death in the Chinese market, and is now being copied in other markets. Also, confronting the problem of how to transfer large traffic figures into profit, Kuaishou has already failed once at the task. Not failing a second time will be the next priority in its to-do list. 

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Jun 10, 2020 10:36 pm · eastmoney

Kuaishou Contracts with Jiangsu TV on Media Upgrades

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Jun 7, 2020 09:30 pm · people.cn

Kuaishou: Launches First Data Center in Ulanqab

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Jun 5, 2020 11:12 pm · people.com

Kuaishou First Launches "616 Shopping Festival"

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May 31, 2020 10:29 pm · admin5.com

Kuaishou Buys the Copyrights of Jay Chou's Songs and MVs

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May 26, 2020 11:31 pm · 36Kr

Former Vice President of 58.com Joined Kuaishou

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Apr 20, 2020 10:55 am ·

Spark Education Nabs USD 30 Million from Kuaishou

According to 36kr, children's critical thinking training startup Spark Education has received a staggering USD 30 million from ByteDance's nemesis Kuaishou.  It is reported that Kuaishou has been in contact with the firm since the end of last year. Other than this Spark Education is also in the process of raising a new round of financing, with a target of between USD 100 million and USD 150 million. Almost a year ago, in March 2019, Spark Education announced the series C financing round of USD 40 million led by Northern Light Venture and followed by Sequoia China and other investors. Five months later, the firm announced the second round of financing of USD 85 million backed by renowned investors such as KKR and GGV. The company completed four rounds of financing in less than three years. As an online critical thinking platform for children, Spark Education offers a one-to-many online interactive live small class, and strong interactive game links to develop students' core ability of thinking, concentration and other core skills. It is focused on the young mathematics thinking training.   According to the same source, in 2019, Spark Education’s annual revenue was CNY 550 million, and the monthly income at the end of the year was about CNY 85 million which has increased to CNY 150 million as of March 2020 amid the epidemic. Since the company’s products and services have a good reputation in the industry, its main user growth comes from word of mouth, which results in lower customer acquisition costs. It is reported that the current referral rate of the firm is 82% with a 75% renewal rate. Although the track is still not very mature the firm might face competitors. The online education unicorn VIPKID released its mathematical thinking education (considered a type of quality education) platform Luna Education (噜啦数学), which targets children from ages 5 to 10.  Another New Oriental, DCM China-backed platform, VIPthink (豌豆思维), which focuses on the same track recently announced that it is making profit with a user renewal rate of about 80%. Besides being the fastest growing firm in its field, the firm emphasized that the current user growth rate is fast, and the average monthly growth rate since its launch has reached 100% month-on-month. We have mentioned before how giants from other industries are venturing into the education industry. This is actually the second time Kuaishuo has invested in an education startup. Kuaishuo’s short video app Kwai is the toughest competitor of the world-famous app TikTok. TikTok’s creator ByteDance has already shown an interest in entering the education industry by either launching its own education products or investing in startups. This move by Kuaishuo shows that it considers the situation created by the epidemic in the education industry as a window of opportunity to enter the field to widen its revenue streams and compete with its arch-rival Bytedance. 

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