Chinese internet companies continue to seek out new business models to marry e-commerce
Beijing-based Kuaishou, a video-sharing and live-streaming platform backed by Chinese internet giant Tencent Holdings, is experimenting with so-called Social+ model to drive new revenue streams.
In particular, Kuaishou is allowing selected users to open up what it calls “little shops” within its platform, where users and merchants can link to products from e-commerce marketplaces such as Alibaba’s Taobao or Youzan shop platform from WeChat.
In addition, users are able to include an online store with their posts. The operation of purchase is simple: product links can be added during a live-streaming session on Kuaishou or in a photo or video post; after this, clicking on the product within, Kuaishou will redirect users to the product listing on Taobao or Youzan.
According to a Kuaishou spokesman, the e-commerce features are currently being trialled
The first test of these new features will not be available to all users, but only to the best ones. The video streaming platform has in fact decided to choose only users of Kuaishou who have had their identity verified and who have a clean record of the behavior on the site.
Kuaishou’s decision, however, stems from the need not to lag behind its opponents in the Chinese market. The rival short-video platform Douyin, in fact, has already launched the e-commerce features within its app at the beginning of the year, allowing users to connect products on Taobao.
The Social + model combines fun information and e-commerce content to attract hundreds of millions of users and generate new revenue streams
Short video platforms like Kuaishou and Douyin are among the hottest social apps in China, with daily active users crossing 120 million and 150 million respectively. However, these platforms often have content deemed inappropriate.
In April, China’s media watchdog, the State Administration of Press, Publication, Radio, Film, and Television (SAPPRFT), ordered Kuaishou to clean up content on its platforms. In particular, to produce the ban, videos of adolescent women in bondage or with children. Forbidden because in China the minimum age to marry is 20 years for women.
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