Kuaishou: China’s Profitable Short-Video Gem Still Flying Under the Radar
TikTok may be grabbing all the headlines globally, especially with the looming forced sale of its U.S. unit. But in China, the first name that comes to mind isn’t TikTok — it’s Douyin, TikTok’s elder sister, launched a year earlier for the domestic market.
In the shadows, however, there’s another player that many forget: Kuaishou, which was actually launched even earlier than Douyin and is China’s first short-video platform.
Normally, we avoid investing in the number two. But sometimes, a strong number two with value-for-money valuation, a visible growth trend, and a big enough market to accommodate multiple winners presents an opportunity. Kuaishou could be exactly that.
Kuaishou vs Douyin: Two Different Worlds
At a glance, Kuaishou and Douyin look similar — massive user bases and powerful video ecosystems. But under the hood, they couldn’t be more different.
Douyin commands over 700 million daily active users, thriving among younger, urban audiences. Its content is polished, aspirational, engineered for virality.
Kuaishou, meanwhile, serves around 400 million daily users, skewing slightly older (25–45 years old) and dominating Tier 3, Tier 4 cities and rural areas. Its philosophy is rooted in authenticity — real people, real lives, gritty, "lo-fi" glimpses of everyday life known locally as tuwei (土味) style.
Users don’t just scroll for entertainment; they build real relationships with creators. Kuaishou’s algorithm reinforces this, prioritizing connections over virality — a crucial foundation for trust, loyalty, and ultimately, monetization.
Even their business models reflect their DNA.
Douyin has built a sleek, closed-loop e-commerce empire with flagship stores inside the app, enhancing the shopping experience by keeping everything within its ecosystem.
Kuaishou also has its own in-app commerce infrastructure. But unlike Douyin, it maintains external links to giants like Taobao, JD.com, Tmall, and Pinduoduo.
This strategy is practical — Kuaishou may not be big enough yet to convince all merchants to set up native stores, and linking to external platforms broadens product variety.
Given Kuaishou and Pinduoduo target similar cost-conscious demographics, these external partnerships could even boost growth rather than dilute it.