Kuaishou vs. Douyin: How brands can win on China’s underdog app

Kuaishou, the part-state-owned Chinese short-form video app founded in 2011, often finds itself overshadowed by its stablemates Xiaohongshu (also known as RedNote) and Douyin. But the platform poses real opportunities for brands — that is, if they know how to use it right. Touted as China’s underdog in the social media race, Kuaishou may not command the same global recognition as Douyin or Western counterpart TikTok, but in Q3 of 2024, Kuaishou’s average monthly active users (MAUs) soared past 500 million. Daily searches also spiked over 20% year-on-year, surpassing 700 million, with peak figures hitting 800 million. Kuaishou presents a unique opportunity for brands looking to tap into China’s rich digital landscape. But how does it stack up against its competitors? And what key strategies should brands adopt to maximize their presence on the platform? A distinctive audience While short-form video giant Douyin dominates urban markets, Kuaishou has carved out a niche in China’s lower-tier cities and among rural communities, capturing a more diverse and overshadowed audience. “Kuaishou’s user base is distinct from Douyin and Xiaohongshu,” says Yereth Jansen, CEO of Shanghai-based advertising and design agency Darling. Unlike its flashier rivals, Jansen says that Kuaishou thrives on authenticity, resonating with users who prioritize relatable content over “polished,” aspirational aesthetics. This focus makes it a powerful tool for brands looking to build trust and engagement with community-driven consumers outside of China’s major metropolitan hubs. For companies seeking deeper regional impact, Kuaishou offers a direct line to rural audiences via localized storytelling and everyday experiences. Its grassroots approach is particularly appealing to brands in sectors like agriculture, FMCG (fast-moving consumer goods), MAG (magazines, anime, comics) and homegrown fashion, where trust and relatability tend to drive consumer decisions. Kaishou's 'lo-fi' grassroots content Kuaishou has built its success not on fleeting viral trends, but on fostering deep connections between creators and audiences. Its emphasis on authenticity resonates particularly with users in China’s lower-tier cities — where around 85% of its audience is based — setting it apart from the fast-paced content cycles of competitors. A case in point is the app’s Chinese New Year project, where Kuaishou teamed up with Xinhua News Agency on its nostalgia-infused “500 Hometowns” series, celebrating the tradition of “returning home” through short films set in Datong, Yantai, and Qiqihar to tap into regional pride. Beyond its stronghold in grassroots content, Kuaishou boasts a diverse livestreaming ecosystem. In 2023, the platform hosted nearly 400 types of livestreams, with the most popular categories spanning talent showcases, daily life vlogs, agricultural empowerment, science education, and outdoor sports. Livestreaming remains its bread and butter, particularly in e-commerce, where it continues to carve out a niche despite Douyin’s dominance. However, as China’s livestreaming sector booms, challenges loom. Kuaishou’s livestreaming revenue hit RMB9.3 billion ($1.24 billion) in 2024, a decrease of 3.9% compared to the year before. Fueling growth via livestreaming To offset the downturn, Kuaishou has expanded its “livestreaming+” model beyond retail, fueling growth in sectors like recruitment and real estate. In Q3 2024, job applications on its hiring platform Kwai Hire (快聘) nearly doubled year-over-year, while property leads on Ideal Housing (理想家) surged over fourfold. It’s also honing in on small and medium-sized businesses. In Q3, the number of monthly active merchants using Kuaishou jumped over 40% YoY. The rise was fueled by programs including the Golden Bounty Initiative (斗金計劃), Set Sail Initiative (啟航計劃), and Uplift Initiative (扶搖計劃), which help new sellers gain visibility and reduce entry barriers. These efforts are paying off: In 2024, new merchant sign-ups rose by more than 30% compared to the previous year. As for influencer-driven commerce, the platform last year rolled out features aimed at its top-tier KOLs, including Exclusive Mega Group Buy (購物團) and Mega Crowd Deals (萬人團) to incentivize livestreaming and enhance content value. Meanwhile, the Rising Star Initiative (新星計劃), launched in August 2024, provides financial incentives and traffic boosts to small and mid-tier influencers. The results paint a promising future. According to Kuaishou, the app experienced a 40% quarter-over-quarter increase in its daily GMV and a 25% surge in merchandise sold. Keeping up with e-commerce Kuaishou may be making strides in e-commerce, but it still trails behind competitors in GMV, market share, and user base, says Julien Gaubert-Molina, Partner & Asia CEO of influencer marketing firm Ykone. While Xiaohongshu, for instance, caters to a more premium audience, Kuaishou remains positioned in the mid-to-low-end market. “Kuaishou’s user growth is slower compared to other platforms, and its e-commerce system is less mature,” says Gaubert-Molina. “For example, its supply chain logistics lag behind that of Taobao and JD’s, and its services aren’t as efficient as those of its competitors.” To close the gap with rivals, the app is pouring investments into not only its e-commerce sector, but areas such as artificial intelligence and rural development. Its 100 million RMB ($13.7 million) Agriculture Development Plan aims to boost rural merchants by lowering entry barriers, launching farmer training programs, and introducing product quality labels. Meanwhile, the platform is doubling down on AI, upgrading its Kling video generation model and Kolors text-to-image tool. In August, it rolled out a subscription-based AI video service. But competition is heating up: Douyin is already testing AI-powered avatars that mimic creators’ personalities and habits, aiming to enable 24/7 user interactions. “ByteDance (Douyin’s owner) has emerged as a major force in AI and video editing,” says Darling’s Jansen, pointing to the success of apps like Doubao, a popular AI chatbot, and CapCut, the go-to editing tool for creators. Kuaishou's expanding luxury presence Kuaishou has yet to establish the same luxury presence as Xiaohongshu or Douyin — a gap both Jansen and Gaubert-Molina acknowledge. “Platforms like RedNote and Douyin attract traffic when large brands enter, such as Gucci opening an official account on Douyin, which broke the barrier for luxury brands on short video platforms,” says Gaubert-Molina. Expanding beyond its provincial and agricultural content to include more luxury brands could pay off in the long run, driving relevance, attracting new users to counter slowed growth, and unlocking fresh e-commerce opportunities. “Kuaishou can benefit from Douyin’s focus on high-quality, engaging content and Xiaohongshu’s ability to attract premium brands,” says Jansen. “By investing in content creation tools, forming diverse influencer partnerships, and curating content for urban, younger demographics, Kuaishou can broaden its appeal and become more attractive to a wider range of brands.”

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Why Kuaishou matters: 500M+ active users in China

How Bottega Veneta weaved China’s forever it bag