MoonFox Data: With a Record High User Scale and E-commerce Empowerment, Kwai Has Entered a New Cycle of Growth

CHENGDU, China, Feb. 26, 2024

CHENGDU, China, Feb. 26, 2024 /PRNewswire/ -- Based on CNNIC data, as of June 2023, the number of short video users in China has reached 1.026 billion, accounting for 95.2% of the total netizens, second only to instant messaging applications. Nowadays, short video has become the main channel for network users to obtain information, entertain & socialize, and spend & shop.

In the field of short video, there is still a competitive situation between TikTok and Kwai. Comprehensive video platforms such as Bilibili are accelerating the layout and creating short video content that fits the tonality of their own platforms. As a leading platform, Kwai has made frequent moves in the strategic direction recently. From users to business development, does Kwai have the potential for sustainable growth in the future?

I. With the content being the key, the quantity and quality of users of Kwai are rising 

Average Active User Scale and Usage Duration of Kwai in 2023 Q3
	Scale and Usage Duration
Monthly Active Users (100 million) Anzeige Aktie im Fokus Libero überrascht! Libero Copper & Gold Corp. 0,218 € +9,00% Bevorstehende News könnten diesen Kupfer-Explorer ins große Rampenlicht katapultieren Mehr zur Aktie » Kurse Aurora Mobile Ltd ADR 7,13 $ +11,8%	6.85
Daily Active Users (100 million)	3.87
Average Daily Usage Duration of Daily Active Users (minutes)	129.90

Data source: Kwai's official financial report; Data retrieval cycle: July to September 2023

User assets are the key to the operation and business development of short video platforms. Based on the official financial report data, the average DAU of Kwai in 2023 Q3 increased by 6.4% YoY to 387 million; In the same period, the average MAU increased by 9.4% YoY to 685 million, both of which reached record highs. Moreover, in Q3, DAU used the platform for an average of 129.9 minutes, with a YoY increase of 6.9%.

The steady growth of user scale and usage duration is inseparable from Kwai's strong investment in content.

First of all, Kwai has actively laid out vertical categories content and obtained exclusive rebroadcasting rights. For instance, Kwai was identified as the rights holding broadcaster and the official short video sharing platform of the 19th Asian Games Hangzhou, and the related video views reached 53.1 billion. Meanwhile, as early as 2020, Kwai began to lay out segmented sports events fields such as rugby and snooker, and continued to purchase copyrights and enrich the contents of the sports events.

Secondly, short plays are another highlight of Kwai's content. As disclosed in the financial report, it launched the "Xingmang Project" in the summer movie season, and launched 85 short plays. Wherein, 21 have exceeded 100 million views, covering a variety of themes. Kwai began to lay out this field around 2019, with a considerable reserve of short plays and complete experience in supporting and encouraging creators.

Finally, the creator ecology under UGC. Based on the data of Kwai Guanghe Creators' Conference in August 2023, the number of works published by Kwai creators increased by 14.8% in the past year. Wherein, for instance, the number of works published by users with over ten thousand followers increased by over 46.3% in 2023 Q2. The richness of video content on Kwai has been further deepened. For instance, phenomenon-level contents such as the "Kwai Village BA" basketball game frequently appears.

Data source: Kwai's official financial report; Data retrieval cycle: January to September 2023; The number of interactions includes likes, comments, shares, etc. The data is for reference only.

High-quality content with rich categories on Kwai attracts a huge amount of users. Its content distribution mechanism, combined with unique community atmosphere, further improves users' activity & interactivity. Based on official data, the number of users following each other on Kwai reached 32.2 billion in 2023 Q3, with a YoY increase of nearly 40%. The daily interaction times have exceeded 9 billion, and the overall trend is steadily increasing.

Different from TikTok's traffic distribution logic, which pays more attention to the index weight, Kwai pays more attention to the content in the initial stage of distribution, while ensuring that small and medium-sized creators can get a certain amount of traffic support. In terms of the number of followers, users with less than 500,000 followers account for a relatively high proportion on Kwai, and small and medium-sized creators are ecologically prosperous.

In this context, Kwai has enlisted more realistic video content that is close to life and focuses on realism, attracting users' likes and interaction. Such content and harmonious community environment further strengthens Kwai's core position in markets of lower-tier cities.

Data source: MoonFox iApp; Data retrieval cycle: December 2023; The statistical results only contain App data, excluding ecological traffic data such as web pages, applets and Kuaiyingyong.

Based on the MoonFox Data, as of December 2023, over 42.8% of APP users on Kwai are located in third-tier and fourth-tier cities. More "down-to-earth" video content attracts users in markets of lower-tier cities, which continues to inject vitality into the platform.

Meanwhile, from the perspective of users' age, Kwai is accelerating to break through related fields and continuously enriching the user structure. The proportion of Kwai users aged 16-25 and over 46 reached 6.9% and 23.9% respectively, both of which increased YoY. On one hand, Kwai vigorously developed entertainment live streaming & sales live streaming, and signed up with new streamers to join, and quickly attracted the attention of the Generation Z; On the other hand, a large number of elderly creators have sprung up on Kwai. With the decrease of learning cost and shooting difficulty, more elderly people began to join the Kwai platform.

To sum up, the construction of content has diversified the structure of Kwai users, steadily increased the number of users and strengthened their willingness to interact. Excellent user assets also provide a foundation for Kwai's performance growth and business development.

II.   Marketing services have developed steadily, and e-commerce business has shown its potential

In 2023 Q3, Kwai's performance increased by 20.8% YoY to RMB 27.948 billion. Meanwhile, Kwai's strategy of reducing costs & improving efficiency has achieved remarkable results, with a gross profit margin of 51.7% in the same period, increased by 5.4% YoY. From the perspective of all business lines, its revenue has achieved a steady YoY growth. Relying on high-quality content and users, the overall business has showed a high-quality growth trend.

Data source: Kwai's official financial report; Data retrieval cycle: Third quarter of each year from 2019 to 2023.

In recent five years, online marketing business has developed rapidly, and has gradually grown into the pillar business of Kwai. By 2023 Q3, online marketing service revenue reached RMB 14.69 billion, with a YoY increase of 26.7%.

Kwai began to explore ways to gain revenue by displaying advertisements in 2017, and launched the brand of Magnetic Engine (e.Kwai.com) in 2019. Subsequently, it builds marketing tools, serves advertisers and content creators, and meets marketing needs to improve delivery efficiency. We believe that the competition in the current overall marketing market is intensifying, and the cost of delivery is rising. The steady growth of Kwai's business in this field stems from the diversity of its content ecology and the marketing strategy around streamers.

Compared with the traditional promotion of purchasing traffic, the current advertisers pay more attention to brand marketing, lay emphasis on understanding the needs of potential users, and tend to reach users by registering corporate accounts and producing official content, so as to achieve the transformation of private domain traffic. In this context, content ecology is very important. Taking the game industry as an example, based on official data, as of August 2023, the DAU of Kwai's game content has exceeded 200 million, with a YoY increase of 30%; Meanwhile, the DAU of game live streaming reached 118 million, with a YoY increase of over 22%. Kwai's increasingly rich content matrix provides advertisers in various fields with opportunities to build brand image and reach users. We believe that with the further diversification of Kwai's user structure, advertisers' delivery willingness will be further strengthened.

Comparatively speaking, the proportion of live streaming business lines of Kwai has declined as a whole, but the revenue scale is still considerable. Kwai has developed its layout in the fields of professionalization & training of streamers with high-quality contents. Meanwhile, it enhances the "Live Streaming +" service capability, and accesses to traditional industries to empower development through Kuaipin and Lixiangjia. But in contrast, Kwai live streaming and content have the most significant empowerment on e-commerce business.

GMV Trend of Kwai E-commerce from 2019 to 2023 Q3
	GMV (RMB 100 million)
2019	596
2020 Werbung Mehr Nachrichten zur Aurora Mobile Ltd ADR Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 05.01.25 - dpa-AFX WDH/WAHL 2025/ROUNDUP:SPD verspricht bis zu 18 Milliarden Euro für Investitionen 05.01.25 - dpa-AFX KORREKTUR/WAHL 2025/Habeck warnt: Darf hier nicht wie in Österreich laufen 05.01.25 - dpa-AFX ROUNDUP/US-Absatz: Volkswagen-Konzern mit Licht und Schatten - BMW legt zu 1000 Der nächste Lithium-Gigant?    Rio Tinto setzt 44,4 Mio. Dollar auf das Potenzial dieser Junior-Aktie! weiterlesen» Anzeige wo-site-teaser-box-18974_site-teaser-box_2025-01-05_09%253A00%253A00_2025-01-06_09%253A00%253A59