“Record the world, record you”

Founded: 2011, in Beijing, China

Category: Internet

Primary office: Beijing, China

Primary Office: Beijing, China

Core technical team: Beijing, China

Status: Private

Employees: 8000

Amount raised: $4.4 billion (8 rounds – 2019

OVERVIEW

  • Chinese video sharing app
  • One of the world’s leading short video social platforms
  • Mission: To increase every individual’s happiness through big data and artificial intelligence

 

PERFORMANCE METRICS

  • Revenue: $7.2 billion (2019)
  • 99% of revenue is from China
  • Valuation: $28 billion (2020)

 

ACHIEVEMENTS

  • Registered global users: 700 million (2020)
  • Daily active users: 300 million (2020)
  • User-generated content: 20 billion (2020)
  • Topped the Google Play and Apple App Store “most downloaded” lists in 8 countries outside China (including South Korea, Vietnam, Russia, etc.)
  • Ranked No. 4 on the Sensor Tower Ranking List of Leading Non-Mobile Game Apps (2018)
  • Ranked No. 8 on Hurun Global Unicorn List (2019)
  • Ranked No. 44 on Leading Index of Corporate Social Responsibility in China of 2020

Sells

  • Fans headlines – users pay fees to headline their videos and recommended to a certain number of users
  • Short video advertisements – brands (especially game brands) advertise on Kuaishou through short videos
  • Livestream – users can broadcast live on kuaishou, fans will pay a fee (shared with Kuaishou)

Channels

  • Multi-channel advertising (e.g., TV, video websites with high traffic, cinemas)
  • Exclusive sponsor of popular TV shows (e.g. “Keep Running”, “Sing!China”, “CCTV Spring Festival Gala Evening”)
  • Payment for referrals and invitations
  • Coupon package for new users

Competencies

  • Maintaining a healthy platform (especially for adolescents); automatic and manual content review for unsuitable content
  • Recommend videos based on interests derived from big data and artificial intelligence
  • Expertise in “concise style” user interfaces (self-explanatory – no user guides required)
  • Understanding of multiple motivations for videos – e.g., leisure, sharing of everyday life, meet higher levels of Maslow hierarchy of needs
  • Understanding of their market – 3rd and 4th tier cities and rural districts
  • Founder-led management team

Resources

Assets

  • Powerful investors and backup including Tencent and Baidu
  • Large user base and high user stickiness
  • R&D centers in both China and the U.S. (Silicon Valley, Seattle, and San Diego) studying artificial intelligence, machine learning, interactive algorithms, big data, etc.
  • Technology partnership with Intel
  • Strategic partnership with JD.com so that JD.com products can be purchased directly on the Kuaishou during the livestream
  • Partnerships with universities for R&D (e.g. Tsinghua University, Zhejiang University)
  • Partnerships with Kugou Music, QQ Music, People’s Daily for music and news
  • Video sharing app

Processes

  • Frequent updates to innovate and improve, and provide better use experience
  • Processes to build online communities

Priorities

  • Vision: Everyone’s lives are worth chronicling
  • Focus on normal people and record normal people’s life
  • Continue to invest in artificial intelligence and big data technology to improve user experience
  • Ensure a healthy and positive online environment
  • International expansion (strategies vary on domestic market)

Assertions That Best Describe What the Company Did to Scale Early, Rapidly & Securely

  1. Increase the company’s value by continuously seeking and receiving funding to support the company’s plan to scale and improve its image in the marketplace
  2. Increase demand by enabling users to participate in product and service development
  3. Continuously improve the user interfaces and applications that directly influence the entirety of the customer experience including personalized content, quality messaging, and the delivery and returns process to increase sales
  4. Increase demand by using scientific and technological advances to develop innovative products and services
  5. Increase demand of products and services by combining two or more resources in a way that the value created from them exceeds the sum of the value created from each resource separately
  6. Increase profitability by applying processes that make products and services easier to understand, produce and deliver
  7. Increase market share by selling products and services that the target market perceives to be better than available alternatives

References

  1. Kuaishou. 2020. Baidu baike. https://baike.baidu.com/item/%E5%BF%AB%E6%89%8B/19678032
  2. CrunchBase. 2020 https://www.crunchbase.com/organization/kuaishou
  3. Kuaishou.2020. Wikipedia. https://en.wikipedia.org/wiki/Kuaishou
    Tencent-backed Kwai App ranked Most Popular social short video app 2020 . Markets Insider. https://markets.businessinsider.com/news/stocks/tencent-backed-kwai-app-ranked-most-popular-social-short-video-app-1025560745
  4. Kuaishou earned revenue of $7.2 billion in 2019: report. Technode.

Contributors

  • Mengya Chen