Short video platform seems have reached its peak. Tik Tok, for example, is now the most downloaded app in the world. But another platform is pushing its way up, challenging the ByteDance’s app. Kuaishou is even more popular to rural Chinese than Tik Tok.
Founded in 2011, it was initially an image and GIF sharing platform. Then two years later it pivoted to a video sharing platform. Even though it has only conducted two funding rounds, it has $1.4 billion raised. The $1 billion is entirely from Tencent.
In the first quarter of 2019, Kuaishou reported that it has 200 million daily active users. It is 40 million away from the previous year. The company also reported a rise on the revenue to $4.36 billion from the previous $2.91 billion in 2018.
Kuaishou is ruling over the rural China
Though the number is way below its competitor, Kuaishou has a sure hold on its own market. Instead of the worldwide market, the Tencent-backed platform focuses more on China’s rural area. It is even more popular than Tik Tok to 40% of Chinese which lives in the rural area.
The design of the app has something to do with it. When people open the app, there are only 3 buttons on display. Unlike its competitor with complicated video choice and everything. The company admitted that it wants to make it easier even for people who can not read.
Also, the system of AI that it uses is different to Tik Tok’s. Instead of recommending already famous contents, it steers away the famous ones. This system gives better chance for people to shine equally.
As the format of social commerce is getting popular in China, Kuaishou also transforms to a social commerce of its kind. The videos in the platform mostly features local foods, groceries and construction tools. And slowly as interest grows, the video owners started on selling those products online.
