Short video app TikTok is prioritizing the US, Japanese, and Indian markets to boost growth, following a leadership shakeup at parent company Bytedance, Chinese media outlet LatePost reported.
Why it matters: Facing slower growth and fierce competition from rival short video app Kuaishou, Bytedance is placing greater emphasis on its faster-growing markets such as India.
Details: TikTok has removed the UK from a group of four countries it had previously deemed strategically important. The US, Japan, and India markets have been assigned their own general managers while others only have product managers at present.
- According to the LatePost report, TikTok in India has grown its daily active users (DAU) by 50 million since the start of the year, accounting for half of TikTok’s total global DAU.
- TikTok ranks all markets according to its average revenue per user (ARPU). The US, Japan, and the UK are labeled “S” while nations such as India, Korea, and some western European countries fall in the “A” group. Countries with the lowest ARPU are graded “B.”
- Due to its rapid growth, India was still given the highest strategic importance despite its relatively low ARPU ranking.
- The Brazilian market is also ranked higher in terms of ARPU and strategic importance due to continued efforts from rivals Kuaishou and YY to push their services in the country.