Short video app Kuaishou doubles down on domestic e-commerce

Chinese short video app Kuaishou has upgraded its e-commerce services, giving preference to domestically produced goods and partnering with Chinese e-commerce giants in the hope of commercializing its 150 million daily active users.

The company’s new plan gives priority to the development of “Made in China” goods, agricultural e-commerce, public welfare, entertainment, craftsmen, and skill training.

“Users can buy daily necessities and electronic products elsewhere,” Bai Jiale, Kuaishou’s head of operations, said in a statement. “Kuaishou is the best place for some unique products, such as gourmet [food] hidden in mountains and seas and cultural handcrafted products.”

Content-driven e-commerce is a growing trend in China. Rival short video platform Douyin rolled out a shopping cart feature earlier this month. Similarly, large e-commerce platforms are seeking partnerships with content creators to drive their sales. Alibaba’s Taobao buddied up with video streaming site Bilibili to boost commercialization of content-driven e-commerce.

In addition to partnerships with third-party e-commerce services like Alibaba-owned Taobao and Tmall, as well as mobile e-commerce platform Youzan, the Tencent-backed firm has launched an upgraded Kuaishou Store. Products will be displayed with more prominence and order tracking and management features are integrated within the app.

Kuaishou also brings in influencer agencies like Ruhnn Holdings and Wanghongmao to help livestreamers who don’t have e-commerce experience. Given previous counterfeit product scandals on Kuaishou and Douyin, the company also plans to establish a system for quality and risk control.

Kuaishou has become popular among small retailers and farmers in rural areas. Over 10 million users have made money on the platform over the past year, said company CEO Su Hua at the World Internet Conference held in Wuzhen earlier this year.

In response to the shift, China’s new e-commerce law, which will come into effect next year, broadens the definition of e-commerce operators to include players who do business through various online channels, from social networking to short video apps. The inclusion of non-traditional e-commerce channels effectively brings the small-sized yet flourishing e-commerce players under regulation.