Jiemian News reported on October 17 that, according to people familiar with the matter, Kuaishou has canceled various departments including sales, channels, and operations under commercial marketing platform Magnetic Engine and e-commerce marketing platform Magnetic Niu. Related teams under the two platforms have now been merged into a newly established business department. At the same time, several business leaders for Kuaishou e-commerce underwent adjustments.
During two rounds of organizational restructuring from August to September, top leaders of the Kuaishou E-Commerce and Commercialization Division also witnessed changes to their position. This time, adjustments were completed under the leadership of Cheng Yixiao, CEO of Kuaishou, and Liu Feng, Head of the Kuaishou Commercialization Division.
Regarding the frequent organizational restructuring, sources close to Kuaishou said that when user and traffic scale enter a full competition stage, Kuaishou should shift from simply pursuing scale growth to realizing the common growth of scale and commercial income, and that internal advertising business driven by e-commerce played an increasingly important role in the growth of commercial income. Besides, some firm insiders believe that internal rotation can help solve the problems encountered in organizational culture to a certain extent.
At present, Kuaishou’s e-commerce and commercialization divisions are preparing for the upcoming Kuaishou November 6 (116) Shopping Festival, and the effect of this round of adjustments will also appear after the shopping event. Last year, more than 4,000 brand merchants participated in the 116 Shopping Festival for the first time, and the overall number of brand goods orders increased by 350% year-on-year, while gross merchandise volume increased by 433% year-on-year. Compared with the same period last year, the number of merchants increased by 52%, among which the number of brands increased by 391%.
According to public information, in the second quarter of 2022, Kuaishou’s number of users reached a record high, with 347 million daily users and 587 million monthly users, up 15.9% year-on-year. What is more striking is that in the first quarter of 2022, the platform GMV exceeded 175.1 billion yuan, and as of March 2022, the annual active e-commerce purchasers of Kuaishou had exceeded 210 million. The monthly repurchase rate of e-commerce continued to increase.
During the Kuaishou E-Commerce Business Conference held on September 29, Ye Heng, the executive in charge of e-commercial user operations at Kuaishou, announced that this year’s 116 shopping period had officially opened for merchant registration, and the company will invest twice as much to as before to boost traffic and help merchants see breakout results.