Douyin and Kuaishou E-commerce Growth Slows in H1 2024
China's leading short-video platforms, Douyin and Kuaishou, have experienced a deceleration in e-commerce growth during the first half of 2024, according to a report by local tech media LatePost. Despite this slowdown, both companies continue to record robust double-digit Gross Merchandise Value (GMV) increases of approximately 20% in recent months. The report cites a source close to Kuaishou, identifying the stagnation in overall user base expansion as the primary factor limiting faster sales growth. In response to these challenges, Kuaishou is strategically adjusting its approach to balance user engagement with commercial interests. The company recognizes that an excessive volume of advertisements could deter viewers from making retail purchases within the app. To address this, Wang Jianwei, Kuaishou’s head of commercialization, assumed control of the e-commerce division last November. His leadership aims to optimize the mix of content and advertising to sustain growth without compromising user experience. This development highlights the evolving dynamics of China's digital commerce sector, where platform saturation is beginning to impact previously rapid expansion rates for major tech players.
Wire timeline
Douyin and Kuaishou E-commerce Growth Slows in H1 2024
China's leading short-video platforms, Douyin and Kuaishou, have experienced a deceleration in e-commerce growth during the first half of 2024, according to a report by local tech media LatePost. Despite this slowdown, both companies continue to record robust double-digit Gross Merchandise Value (GMV) increases of approximately 20% in recent months. The report cites a source close to Kuaishou, identifying the stagnation in overall user base expansion as the primary factor limiting faster sales growth. In response to these challenges, Kuaishou is strategically adjusting its approach to balance user engagement with commercial interests. The company recognizes that an excessive volume of advertisements could deter viewers from making retail purchases within the app. To address this, Wang Jianwei, Kuaishou’s head of commercialization, assumed control of the e-commerce division last November. His leadership aims to optimize the mix of content and advertising to sustain growth without compromising user experience. This development highlights the evolving dynamics of China's digital commerce sector, where platform saturation is beginning to impact previously rapid expansion rates for major tech players.
TechNode