On December 5, Chinese short video platform Kuaishou announced that it would drive traffic to over 6 billion views and provide one billion virtual red envelopes to help merchants boost business on its e-commerce platform.
This year, Kuaishou’s 2023 New Year Shopping Festival will be held from December 24, 2022 to January 2, 2023 with product themes ranging from clothing to New Year’s gifts. At the same time, Kuaishou will launch special promotions aimed to reward users who buy more expensive items.
In order to more efficiently promote the matching of merchants to livestream anchors, Kuaishou e-commerce invited 60 top brands and 1,500 livestreamers to participate in a live selection of products. Based on growing user demand, Kuaishou e-commerce expects fresh food, beauty and clothing to usher in a consumption boom in the upcoming New Year’s Day online shopping extravaganza.
In terms of consumer demographics, women are expected to be the main driving force of this year’s online sales. However, Gen Z and male consumers are also rapidly on the rise. According to data from 2022’s New Year’s Day, Gen Z consumption increased by 254% year-on-year, of which female consumption accounted for 76% and male consumption increased 90% year-on-year.
According to a report by Chinese media outlet LatePost, e-commerce sales on Kuaishou in the January-September period reached 270 billion RMB (37.8 billion USD) and are expected to reach a GMV of 410 billion RMB by the end of 2022, an increase of 26% from 2021. Moreover, in the third quarter of 2022, Kuaishou’s number of daily active users surpassed 360 million, and the number of monthly active buyers on the e-commerce platform reached 100 million users with the number of online store openings increasing nearly 80% year-on-year.
However, compared to rival Douyin, a platform with over 700 million daily active users, Kuaishou’s growth rate mains quite slow. In fact, Douyin is already two-thirds of the way to its e-commerce GMV target of 1.5 trillion RMB (214.5 billion USD).
Unrelenting in its efforts to push its e-commerce agenda, Kuaishou is doing all it can to not only reel in new users but also to retain them for the long term. The New Year holiday promotions, therefore, could serve as an excellent opportunity to create new growth points, especially as the video platform considers creating its own one-stop supply and delivery chain.