Kuaishou shifts focus to e-commerce and life services · TechNode

Chinese language brief video platform Kuaishou has undertaken an organizational restructuring in current weeks after organising a brand new administration committee in early August.

Why it issues: Kuaishou’s newest reshuffle, one in all a variety of organizational changes the corporate has remodeled the previous 12 months, displays the agency’s emphasis on e-commerce and native life providers as main avenues for brand spanking new progress.

Particulars: CEO Cheng Yixiao will lead Kuaishou’s e-commerce unit from mid-September, in an indication of this sector’s rising significance throughout the firm. The Douyin rival has additionally upgraded its native life providers unit, carving it out as an impartial enterprise division and putting it below the management of Xiao Gu, Kuaishou’s senior vp and former head of the e-commerce sector.

• The interior adjustment will even see Kuaishou enhance the working funds for native life providers, based on Chinese language media outlet LatePost, with the newly established division set to construct its personal gross sales workforce and actively method extra service suppliers because it appears to compete with Douyin.
• Kuaishou’s e-commerce GMV reached RMB 680 billion ($97 billion) in 2021. Caixin beforehand reported that the corporate set a 2022 GMV goal of RMB 900 billion, however reached simply RMB 366.3 billion within the first half of this 12 months.
• Abroad enterprise can be now a precedence for Kuaishou, after the corporate created a brand new division for worldwide commercialization in March. Native media outlet Jiemian reported final week that the division has divided abroad markets into three tiers, with the highest tier occupied by Brazil and Indonesia, international locations the place Kuaishou has the most important each day energetic person numbers outdoors of China.

Context: Promoting income generated by its e-commerce enterprise has allowed Kuaishou to develop its earnings regardless of a sluggish macro surroundings wherein most Chinese language web firms have seen a pointy decline in promoting.

• As China’s financial system slows, Kuaishou can be specializing in commercialization and attracting native advertisers in Latin America, Southeast Asia, and the Center East, largely avoiding European and American markets the place TikTok is dominant.