2024 Growth Strategies of China’s Top Short Video and Livestreaming Platforms: Douyin and Kuaishou

Douyin and Kuaishou, the top two short-video platforms in China, have since expanded into livestreaming and are both continuing their focus on E-commerce. Both Douyin and Kuaishou have impressive monthly active user numbers of 750 million and 700 million, respectively, and saw significant E-commerce growth in 2023. Douyin managed to reach a GMV of RMB 2.7 trillion, while Kuaishou saw a GMV of RMB 1.18 trillion.

In the first half of 2024, Douyin attempted to adopt a strategy centered around offering competitive low prices, aligning with the tactics employed by Pinduoduo, Alibaba, and JD.com. This reflects a growing consumer demand in China for high-value, low-cost products.

However, the platform has shown a reversal in this strategy after it began to hurt sales growth. The growth rate of Douyin’s in-app stores dropped to less than 30% in 2024Q2, despite the platform seeing a growth rate of over 60% in the first two months of 2024 and over 50% in 2023. As a result, Douyin will return to focusing on GMV growth instead of price competitiveness.

Moreover, Douyin also launched a separate shelf-based e-commerce app, Douyin Mall. Similar to Tmall, on Douyin Mall, users can complete the entire e-commerce journey, from product discovery, product searches, price comparisons, order placements, order and delivery tracking, and customer services. Although content and user interests are synchronized between Douyin and Douyin Mall, enabling users to receive product recommendations on Douyin Mall from creators they follow on Douyin, the platform does not permit users to post videos.

By leveraging its expansive user base and combining this with a continued focus on E-commerce growth, Douyin has the internal goal of reaching GMV RMB 4 trillion in 2024.

Although the short-video and livestreaming platform, Kuaishou, is frequently overshadowed by its competitor, Douyin, the platform also remains a significant player in the E-commerce sector in China.

Looking ahead to 2024, Kuaishou charts a course toward a more user-centric approach, prioritizing an enhanced shopping experience and the optimization of affordable and high-quality product offerings. The platform’s success in driving sales of products priced under RMB 50 in 2023 is reflective of its beginnings as a platform for lower-tier cities and mass-market products, tapping into more price-sensitive consumer bases.

For merchants, Kuaishou pledges comprehensive operational support, including zero-cost store setups and subsidies for return shipping, along with assistance in expanding store reach. Additionally, the platform commits to fostering closer collaborations with Key Opinion Leaders (KOLs) to streamline e-commerce livestreaming, boost engagement, and expand viewership opportunities.

By bolstering support for merchants and KOLs alike, while also fine-tuning the user experience, Kuaishou aims to continue increasing platform traffic, driving sales, and attracting more brands to its ecosystem in 2024.

As Douyin and Kuaishou continue to refine their strategies and adapt to the evolving e-commerce landscape, the opportunities for future growth are clear. With Douyin's ambitious GMV target and Kuaishou's commitment to enhancing user experiences, both platforms are poised to capitalize on the burgeoning social commerce market in China. By leveraging their unique strengths and expanding their reach, Douyin and Kuaishou are not only shaping the future of e-commerce but also setting new benchmarks for user engagement, redefining the online shopping experience for Chinese consumers.

First screenshot: Example of a ?Douyin E-commerce Livestream, including the purchase option directly linked within the livestream and a live chat section.

Second screenshot: Screenshot from Douyin Mall, showcasing the different types of products available.

Third screenshot: Screenshot of a livestream on Kuaishou, where the purchase link is prominently displayed and the live chat box can be seen.