Growth Curve of Kuaishou

Source乱翻书

Throughout the first half of 2018, Kuaishou suffered a trough that had never been encountered since its establishment 8 years ago.

One is the rapid rise of Douyin to catch up, rising from 30 million DAU at the beginning of the year to 150 million at the end of June. The second is the content supervision turmoil, which has a major impact on product data and live broadcast of major revenue sources. The third is the unsuccessful brand upswing, and the vigorous launch of variety shows has not been recognized by users in first- and second-tier cities and southern cities.

Under the combined effect of several events, the user growth of Kuaishou was interrupted and remained at around 100 million DAU within six months. Live broadcast revenue declined, reaching its lowest point in May and June 2018. Later, Kuaishou reflected, “Behind the numbers that look good, we saw deep hidden dangers: as we grow up, our muscles begin to become weak, our reactions slow down, and our connection with users is weakening.”

The fast-handed sense of goal of being behind and catching up has become stronger, and the strategy has become more structured. The product reversed its decline in the second half of last year and emerged from a growth V-shaped curve: user growth, creators, and live broadcast revenue all rose, live broadcast delivery and commercialization started, MCN accelerated introduction, content ecology further prospered, and brand recognition Also spotted it. The two founders of Kuaishou issued an internal letter in June this year stating that they would bid farewell to Buddhism and increase productivity. “If we have always wanted to achieve a great product, now we want to achieve a great company.”

In the middle of the year, Kuaishou’s DAU exceeded 200 million, and the F round of financing was 3 billion U.S. dollars. At the end of the year, the live broadcast DAU exceeded 100 million. It won the exclusive cooperation with the Spring Festival Gala. Kuaishou was verified at the level of DAU, cash flow and capital markets. Short videos have become a duopoly, and there is no winner-take-all situation like the social and search fields. The healthy competition between the two products of Kuaishou Douyin has set the ceiling of the short video track together.

The more competition, the more growth. Kuaishou has maintained steady growth in a competitive state. While upgrading its products and the company’s arsenal and toolboxes, competition has also allowed Kuaishou to more clearly define its position: who I am and where I will go.

From a community where half-acquaintances and half-strangers coexist, work towards becoming a community where strangers and acquaintances are mixed. In this process, in order to achieve the transformation from the achievement of a product to the achievement of a company, it is necessary to build a team capable of fighting.

1.  Product

1.1 Live

In August 2018, the PK function of Kuaishou live broadcast was launched. This function directly reversed the decline of live broadcasts, and raised the monthly live broadcast of Kuaishou from 1 billion to 2 billion within half a year. At the Kuaishou Annual Conference, Su Hua presented the “2018 Business Breakthrough Award” to the live broadcast team. “With their efforts, the average daily live time per person in live broadcast in 2018 has increased significantly.”

The uniqueness of Kuaishou Live Broadcast is that the product is a positive feedback loop model from content to live broadcast and then to content, which is different from the funnel model of content to live broadcast on other live broadcast platforms, that is, live broadcast is not a product that consumes traffic in Kuaishou. Under the positive feedback loop model, users continue to deepen their cognition of creators, and then form a long-term follow and trust relationship with the old iron. The funnel model pursues a short and fast realization, and requires a strong realization efficiency at the bottom of the funnel, and the live show becomes the ultimate The path, resulting in a very short life cycle of the anchors come and go.

Kuaishou’s dual-column model has created a human-centered content distribution mechanism. When users come into contact with creators’ short videos, they build a more dimensional perception of the old iron through live broadcasts on the follow page. The more live broadcasts watched by the same creator, the more The short video of the creator is high probability, and the more short videos you watch, the live broadcast will be weighted. The positive loop model of short videos and live broadcasts has shaped the atmosphere of the old iron on the platform.

The trust relationship subsequently becomes an important foundation for e-commerce to bring goods, and the human-centric distribution mechanism also enables Kuaishou Live to escape the narrow show live broadcast and extend a wider range of live broadcast categories. According to the live broadcast report and education report recently disclosed by Kuaishou, the total DAU of Kuaishou live broadcast exceeds 100 million, the DAU of game live broadcast exceeds 51 million, and the daily commentary of education live broadcast exceeds 20 million. Various types of live broadcast content can coexist harmoniously in the follow page of Kuaishou.

1.2 Ecommerce

The outbreak of Kuaishou live broadcast e-commerce is inseparable from two keywords: trust and low prices.

The human-core content mechanism has shaped the trust relationship, which makes the users on the platform treat the standard products with a mentality of “I have to buy this thing anyway, it is better to spend money to support the anchors I trust”, and it solves the problem of the products on the non-standard products. I don’t know what to choose. The low price advantage of direct connection stalls and factories further creates non-standard attributes for the standard products and promotes the shortest decision-making path for consumers.

The actions of Kuaishou e-commerce companies in the past year can probably be summarized as “practice basic skills” and “get back the transaction.” In terms of basic skills, the past year has successively launched functions such as fast-handed merchandise, merchandise evaluation, short video delivery, merchandise category certification, and credit score. After-sales, return and evaluation mechanisms have been used to improve the shopping experience and to combat the platform Various violations.

On the other hand, Kuaishou made a heavy strike in the second half of the year to crack down on illegal private transactions. In the past, a large number of e-commerce behaviors in Kuaishou were reached on the platform, and the transaction link jumped out of Kuaishou and transferred to private domain traffic to complete the transaction. This made Kuaishou unable to protect the shopping experience of platform users, after-sales, fakes, fraud and other matters It’s not uncommon, and at the same time, if you can’t control the closed loop quickly, you can’t make money from it. By November, Kuaishou announced that it would crack down on all private transactions and e-commerce activities except for vehicles and houses, second-hand goods, and virtual goods categories.

At the end of the supply chain, Kuaishou e-commerce chooses key jewelry, jade, and apparel for source construction, and establishes industrial belts and live broadcast bases at the source of the supply chain to further enhance supply chain control. In September, Kuaishou announced the first batch of live broadcast jade bases, ensuring source supply in Ruili, Sihui, the source of jade supply, and preventing counterfeiting through the identification method of “one object, one certificate”. In August, we started recruiting service providers for the e-commerce apparel industry. In November’s Kuaishou Merchandising King event, the main stall bosses came to sell goods, and the factory sourced directly. A total of 300,000 stall bosses and 800,000 factories participated.

Kuaishou e-commerce is currently still dominated by low-priced products, and the next time will be when the brand enters the market. At present, the head anchors of Kuaishou, whether it is clothing or beauty, have begun to try to make their own brands. Brands are a better way to increase the profits of Kuaishou anchors. A typical example is the strict selection of the head celebrity Xin Youzhi; A better entry point for external brands to enter Kuaishou is that the brand specializes in customizing Kuaishou products, which requires the brand to have relatively strong factory capabilities.

2. User

2.1 Content Ecosystem

In 17 years, Kuaishou has invested heavily in variety shows such as “Running Man”, “Happy Camp” and “Tucao Conference”, and has also made a large number of launches in elevators, subways, and airports in first- and second-tier cities. The number of users in first- and second-tier cities has increased significantly. The retention of batch users is not good. One reason is that the content ecology of Kuaishou did not match the needs of first- and second-line users.

 

Because Kuaishou has always advocated not operating or contacting users in the early stage of its development, but the market competition from Douyin and more urgent user needs forced Kuaishou to face up to the problem. First- and second-tier cities and southern cities have become the focus of growth for the second time. Content ecological construction is on the agenda. Kuaishou needs to find the theoretical optimal solution under the constraints of fairness and inclusiveness, content diversification and user data.

In July 19th, Kuaishou held the Photosynthetic Creators Conference. The answer given was “We will be more open and in-depth cooperation with content professional organizations”. It is planned to use 10 billion traffic to support 100,000 high-quality producers, and focus on covering 20 A vertical category. Then launch the MCN grading system and do live broadcast guild entry test.

In the past six months, from the observation of the distribution of top500 creators, the content ecology of Kuaishou has indeed undergone significant changes: media government accounts have grown from nothing, and the proportion of high-quality content has increased. The benchmarking effect attracts external creators to enter in batches, successfully cold-started and accelerated growth under the support policies of the platform, and has a positive impact on the original content creators of the platform: the catfish effect makes the original creators of the platform generate crisis awareness and focus more Content quality.

The significance of the vertical content plan is to let Kuaishou notice the unique value of multiple vertical content on the platform, which can be closed loop through the extension of commercial products, and second, the vertical content construction greatly tempers this “weak operation” The company’s operational capabilities.

Kuaishou education ecology is a typical case of closed loop from vertical content to commercial products. In October, the “2019 Kuaishou Education Ecology Report” subdivided Kuaishou’s education content into four categories: quality education, agriculture, rural areas, vocational education, and subject education, and disclosed that the average daily short video broadcast of education exceeded 2.2 billion. The prosperity of the education ecology is further monetized through the payment products of Kuaishou classroom content, realizing the closed loop of monetization of platforms and creators.

Games, music, food, media, etc., similar to the education ecology, have opened similar paths to promote the prosperity of the content ecology, while also deepening Kuaishou’s understanding of the small B-end on the platform, and further implementing the “inclusiveness” of the platform Idea: How to make B on the platform benignly get more fans, more views, and make more money.

2.2 Operation

The construction of vertical content, on the other hand, has exercised Kuaishou’s historical shortcoming-operational capabilities.

The most important reason for the rise of Douyin during the Spring Festival in 2018 is that the manufacturing center creates trends, and through strong operational capabilities, the trend is brought back when users return home. At the same time, Kuaishou, who adhered to the concept of non-operation, could not find the direction to break the game for a while in the face of the trend. Subsequently, the company realized that whether it is to face more intense market competition or to make itself more understanding of users, it needs to upgrade the company’s arsenal: some weapons are indispensable, and whether they are used or not is a different matter.

After the 19 photosynthetic plan’s support policy for the overall content ecology was determined, Kuaishou launched a vertical scanning operation, and every time a vertical scanning was scanned, it immediately carried out the challenge operation activities of the category.

The operation of each vertical challenge is equivalent to a census of this vertical, to figure out what kind of distribution of the vertical creators are, which vertical creators are willing to cooperate with the activities and which are unwilling, the creators of this category What is the appeal, what can be combined with market brands and commercialization, and what benchmark cases can be explored, these can be relatively clear.

A clearer understanding of the ecology can make Kuaishou more clearly understand who you are, and further extend the empowerment to Kuaishou’s commercialization and brand.

The strengthening of operations can further link commercial actions. Douyin’s challenge is one of the important ways to commercialize revenue. It has formed a set of challenge page, brand landing page, planning and packaging and a series of standardized actions for fans to guide, integrating screen opening, information flow, talent, and hot A series of traffic portal resources such as search, private messaging and customized stickers have become important choices for many brands to invest in Douyin. This has important reference value for Kuaishou.

For Kuaishou, how to find the most suitable way of operation after finishing the work of ecological exploration and how to make good linkage with commercialization is the core worthy of attention in the next step.

3. Branding

3.1 Existence is Perfect

To establish your own brand, not to prove your own brand.

In terms of market and brand, Kuaishou finally stopped promoting “life is not high or low” this year to argue with the public about elites or low issues, but let typical Kuaishou users come to the front and become disseminating products and user values, objectively from themselves Starting from the product, the result is that the culture of the handmade Gengmen and Oli is out of the circle, and the effect is obviously much better than last year’s indoctrination and confrontational communication.

As a contrast to “I went to Harvard, I also went to Kuaishou”, Samsung’s advertisement “The rest of us” at the 2017 Oscars was very advanced. Vlogger god Casey Neistat speaks on behalf of a group of grass-roots Youtubers, praising the passion and courage of the general public after mastering the new creative tool (mobile phone), and the ad copy is extremely awesome. To be honest, there are a lot of low content on Youtube, but after watching this film, you will feel that they are the future.

 

The product has human insight, and the brand should also have resonance. The uniqueness of Kuaishou lies in its diversity and authenticity, “We are different.”

In July this year, a video “Kaishou Group Image: Existence is Perfect”, which mixed 160 Kuaishou clips, was widely disseminated on Weibo and Station B. It also attracted many central media including the Central Committee of the Communist Youth League to participate in the promotion. Kuaishou is a big stage for ordinary people. The products show passion living in this world. Under the sunshine and snow, Liba people are ordinary and not ordinary. The video makes people feel that “Your existence is perfect, and everyone is shining with themselves. Light”.

UP’s “Zhao Mingming’s Limited Grocery Store” wrote in this video copy:

Before I really opened Kuaishou, I couldn’t imagine that this was such a psychedelic place.

Kuaishou is one of the most vibrant places I have ever seen.

Everyone tries their best to show themselves on it-show their work, their skills, their family, show the interesting or uninteresting things they have seen, show all the fortunes and misfortunes given by life, and then continue to work hard and bravely life.

Life is not perfect at all, but hard work and courage are the only way to make him perfect.

[I’m dressed up and waiting to jump into the crowd]

The mountains and the sea are vast, and the world is full of fireworks.

The land under our feet is 9.6 million square kilometers, and there are a total of 1.39 billion people. Everyone in each place has its own excitement.

3.2 Diverse & Authentic

Author Liao Xinzhong wrote an article in September 2018, “When you feel that life is hard and tired, look at Kuaishou! “, a call sign for the diverse groups of Kuaishou, the article describes the various groups of Kuaishou: truck drivers, water transport captains, ocean seafarers, train drivers, circuses, and corpse pickers… The author feels that Kuaishou is a contemporary Baigong map.

 

Later, Kuaishou began to notice the value of various professional clusters on the platform, and began to consciously explore the stories behind the platform groups. The term “Contemporary Baigongtu” was quickly cited by the authorities and included in the “2018 Kuaishou Content Report” .

Diversity and reality can also be out of the circle. In April 2019, the article “Nothing Can Stop Sociologists From Quickening Hands” became popular among the mainstream people who have the right to speak. It tells a group of sociologists, documentary film directors, and non-fiction writers who are in awe of the vast life, through Kuaishouyun research, searching for various life, and observing the “high-level user guide” of social phenomena. The Paper Thought Weekly spoke highly of this article: Kuaishou provided people with guidance and clues, allowing the so-called marginalized people and marginal life to return to the center of the mass media stage, telling their own stories as the main body, and breaking through the cultural industry’s imagination of life. Dominate.

One year after the rectification storm, Kuaishou used the innovative practice of poverty alleviation to board the focus interview, which attracted news network to settle in, and won the exclusive cooperation of the Spring Festival Gala. Jianghu and Miaotang began to cooperate with each other, and they really responded to the advertisement that Kuaishou put on CCTV: In Kuaishou, see China.

 

Kuaishou, another group of truck drivers who have poured into the public’s field of vision, is because of a tragedy.

At the end of 2018, Kuaishou user Xiao Huihui and his wife spent the night in Wudaoliang on the Qinghai-Tibet Plateau. They died of asphyxiation due to altitude sickness and hypoxia that night. They were 31 and 30 years old, leaving their elderly parents and two young children behind. The last video before his death was recorded in Kuaishou: the husband and wife inhaled oxygen in the truck.

This incident quickly caused a shock in the truck driver circle in Kuaishou, and soon became a collective condolences for Kuaishou users: Kuaishou users searched Xiaohuihui and Xiaohuihui who drove the truck exceeded 100 million in a few days. Secondly, Xiao Huihui’s last video had more than 50 million views, 466,000 comments, and account fans rose from 42,000 to more than 2.3 million.

Another spread related to deaths and lives is “49 Tombstones in Kuaishou”, which records people who have proved their existence through short videos. This article describes those who are suffering from serious illnesses in Kuaishou. The video records how users and their families cope with life and death, the joys and sorrows and parting in the struggle against the disease: 5-year-old leukemia baby, young man sorting out his mother’s belongings, A girl with bone cancer and a beautiful wig on crutches.

At the end of the article, I quoted the story of “Looking for a Dream”: A person never really died until he was forgotten by the world.

4. Internal Organization

4.1 Speeding Up

Su Hua’s signature of office communication tools in the past two years has always been evolving.

“We have always wanted to make a great product. Now, we want to make a great company.”

Before Douyin, Kuaishou had not encountered fierce competition on its development road. Because the product cut was good, the time to make it was very early, and it hit the big market, and he was working in a field that no one else had done before, and the opponent could not enter, and the business path was different. However, the rapid growth of Douyin and Volcano in 17-18 shows that Kuaishou’s organization and strategy lack the ability to execute quickly. Facing competition and self-iteration, it is still lagging behind to catch up with a stronger sense of purpose in 2019.

Su Hua is introspecting, “The current situation of the company… makes us sleepless. Since the end of last year, since the two of us, the Kuaishou management has conducted deep introspection and reflection.” At the annual meeting of the new headquarters in Xierqi earlier this year, Su Hua said that Kuaishou’s plan to deal with competition is to pursue the ultimate:

In terms of capacity building, we need to align best practices and challenge the status quo.

In terms of work efficiency, while emphasizing data-driven, it is necessary to maintain rapid response of various departments and optimize cooperation mechanisms.

In terms of work attitude, we need to maintain management pressure, encourage outstanding people to reject mediocrity, and build a team that can fight.

 

In order to change the “loose organization and the attitude of the Buddhist system”, Kuaishou launched the K3 campaign in the middle of the year, calling on all members to enter the fighting state. The company began to pay more attention to the construction of internal infrastructure, implemented OKR, released the rank system, improved talent management methods, consolidated the organization from top to bottom, and solved the problems of loose organization and insufficient internal coordination.

After K3, the obvious change that Kuaishou employees can perceive is that more people work overtime, the requirements for basic skills have become higher, OKRs have become clearer, and team boundaries have become clearer.

Kuaishou initially saw it because of believing that it had done the work of expanding its territory in a big market that no one else had done before, and had product belief bonus blessings. Now everyone sees and believes in the territory. The competition has changed from the idealism of opening up the west to the realism of the army’s combat and siege. Players have begun to use higher-dimensional machines to seize the territory. The industrialized system of Internet competition has been compressed more tightly. Forcing everyone to use technology and organization to increase productivity.

4.2 Kuaishou Lite

The fast breakthrough of Kuaishou Speed ​​Edition is the first time that Kuaishou has won a significant advantage in a local frontal battlefield. While helping Kuaishou narrow the DAU gap with Douyin, it also makes Kuaishou more clear about who I am and where I am going.

 

In August, the fast version of Kuaishou was launched. The main feed stream of the product adopts a single-row feed model similar to Douyin, using the gold coin model to pull new entries, and at the same time reuses the infrastructure of the Kuaishou master terminal in the account system and content ecology. After the launch, it quickly broke through, breaking through 10 million daily activities in 20 days and 25 million daily activities in two months, leaving behind the vigorous microvision and good-looking videos. After the rapid breakthrough of the Kuaishou Extreme Edition, it has become an important part of the K3 campaign. Kuaishou expects it to reach 100 million DAU next year.

 

After the Kuaishou Speed ​​Edition went online, Douyin also launched the Douyin Speed ​​Edition within a month. The Volcano Speed ​​Edition that was already online has increased significantly. These products are almost identical in product form and gold coin pull mechanism. However, according to Qusetmobile data, the DAU of the Kuaishou Speedy Edition greatly exceeds the sum of the Volcano Speedy Edition and the Douyin Speedy Edition, and it is significantly better than the two competitions in terms of user retention, average daily usage times, and user activity. Product.

 

Numerous products of the speed version have proven that gold coins are an effective means of pulling new products, but there are few successful cases in terms of retention and duration. The fast version is one of the few products that balances the substantial growth of users and the sound development of other data indicators.

 

The rapid growth of Kuaishou Express Edition not only helps Kuaishou shorten the gap between Kuaishou and Douyin at the DAU level, but also helps Kuaishou understand the product differences between Kuaishou and Douyin more deeply. The rich content ecology cultivated under the Kuaishou dual-column mode achieves higher distribution efficiency under the single-column mode, and the content ecology cultivation has been solved from the beginning. On November 25, Ma Hongbin, Senior Vice President of Kuaishou, said at the GES Future Education Conference:

  • What has promoted the native growth of Kuaishou? After thinking about this question, our understanding became deeper and deeper, especially after making dual-column UI and single-column UI products at the same time, I gradually realized that it is because the fast-handed dual-column waterfall stream provides users with more Choose an opportunity.
  • The difference between single row and double row can be compared with ordering food: single row is like conveyor belt sushi, one plate after another on the ground, if a portion of braised large intestine is suddenly transferred, users may not accept it. But the double column is more like ordering, users can order whatever they want today. Therefore, the difference between single-column and double-column is that one is passive acceptance by users, and the other is that users choose actively.
  • If the user is passive, the fault tolerance is relatively low, and the user will directly come out of the APP when he sees some disliked content. If the user has the right to choose, the fault tolerance will be higher. In the end, a low fault-tolerant single-column UI will lead to a pyramid-shaped partial media ecology, with head content occupying most of the traffic; and a highly fault-tolerant double-column UI will lead to an olive-shaped partial community ecology, with waist content occupying more traffic. For the first time, I realized that UI design can have such a profound impact on products and ecology.

According to third-party inspections, both the Douyin Express Edition and the Volcano Express Edition have significantly increased their launches in December. In recent weeks, the average daily download volume of the Douyin Express Edition has approached twice that of the Kuaishou Express Edition. A key battle is waiting. Both sides: Spring Festival Gala.

4.3 Chinese New Year Night Show

The Spring Festival Gala is both an opportunity and a challenge.

In 15 years, WeChat launched the Spring Festival Gala for the first time. Shake the red envelope to let people across the country pick up their mobile phones. Since then, WeChat payment has exploded, and it has directly promoted the diversity and prosperity of the WeChat ecosystem in the next few years. Behind it is the WeChat team preparing for two months to ensure The user experience flooded into a large number of users instantly. In 18 years, Taobao prepared three times as many server resources as Double Eleven for the Spring Festival Gala, and the instant server hosting the live broadcast was overloaded, and the instantaneous traffic exceeded 15 times on Double Eleven. The launch of Baidu’s Spring Festival Gala in 19 years became the company’s extreme peak training.

In November, Kuaishou won the competition among competitors such as Ali, Pinduoduo and ByteDance, and won the bid for the exclusive interactive partner of the 2020 CCTV Spring Festival Gala. Kuaishou takes “Like the Chinese New Year” as its theme. The event will run from the Spring Festival Gala to the Lantern Festival Gala from New Year’s Day. On the day of the Spring Festival Gala, RMB 1 billion will be distributed as red envelopes. The Kuaishou main terminal, Kuaishou speed version, and Kuaishou large-screen version will participate in the execution. Starting from New Year’s Day, Kuaishou will launch innovative gameplay such as the “collecting cards to divide 100 million” activity to warm up the Spring Festival Gala red envelopes.

On December 6, Su Hua introduced the strategic significance of the Spring Festival Gala to Kuaishou: “This is the first time that Kuaishou has cooperated in a big battle in eight years, involving a lot of front-line and rear classmates. The company hopes that through the Spring Festival Gala, it can exercise A tough, big battle team.”

Squeezing technology is forcing business, and it also requires organizational capabilities to mobilize resources to build consensus.

 

From a “slow company” to make up for shortcomings, the final result of the K3 campaign, the Spring Festival Gala will give the answer.

 

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