Recently, Kuaishou, one of China's leading short-video platforms, made headlines with an extensive organizational restructuringThis adjustment has far-reaching implications, as it encompasses various business lines, including the main platform, e-commerce, commercialization efforts, and community sciencesIndustry analysts view this restructuring as the most significant move for Kuaishou in 2023, indicative of a strategic shift in response to the rapidly evolving digital landscape.

A source within Kuaishou, choosing to remain anonymous, shared insights about the company's performance in certain sectors, particularly short dramas and real estateThey noted, “From an external viewpoint, our short drama and ideal home segments are performing wellIn e-commerce, we’ve seen notable changes—particularly a decrease in the contribution of top-tier streamers to Gross Merchandise Volume (GMV) while mid-tier streamers are witnessing significant growthThis is substantially due to our internal strategy.”

The rationale behind the organizational changes is multifacetedFor starters, the restructuring reflects Kuaishou's need to adapt to market dynamics and consumer demandsThe shifting sands of the internet industry necessitate ongoing modifications to remain competitiveBy refining its organizational structure, Kuaishou aims to better integrate its resources and streamline operations, facilitating improved responsiveness to its user base.

Moreover, the adjustment also seeks to broaden the company's business horizonsAs Kuaishou refines its operational architecture, it opens avenues for increasing revenue streams in e-commerce and commercialization efforts, crucial in a market where every edge counts.

Another critical dimension of this restructuring is enhancing user experience in the face of escalating competitionThe revised organization is designed to elevate user satisfaction, an essential factor in retaining and attracting a broader audience

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Furthermore, this realignment empowers Kuaishou to fortify its competitive edge against rivals.

The adjustments are also indicative of Kuaishou’s ambition in expanding its e-commerce segmentIn recent years, Kuaishou has made considerable progressThe company reported an impressive revenue growth in 2023, particularly in the first half, where adjusted net profits reached 2.74 billion yuan, with total revenue surpassing 53 billion yuanThe e-commerce GMV crossed 490 billion yuan, showcasing significant growth in a challenging marketNotably, in the second quarter of 2023, e-commerce GMV surged by an astonishing 38.9%, marking the highest quarterly growth in a year.

As for the real estate sector which Kuaishou has recently focused on, data indicates that by the end of 2022, its ideal home initiative expanded significantly throughout the country, covering over 67% of provinces and establishing over 70 deep partnerships, marking its serious intent in the real estate marketThe formation of a dedicated real estate department as part of this restructuring replaces the previous local consumption division, signaling the company’s high expectations for this sector.

Additionally, recent developments like Pinduoduo briefly outpacing Alibaba as the most valuable Chinese stock in the U.S. have spurred confidence in the short-video commerce spaceKuaishou’s strategy for the upcoming “Double 12” shopping festival aims to harness the allure of low-priced quality goods, effectively bridging content and commerce through channels tailored for special offers, which are anticipated to be pivotal for their e-commerce growth.

This restructuring dovetails with Kuaishou's new AI strategy, announced earlier this yearCEO Cheng Yixiao emphasized the commitment to advancing this agenda, which aims to position Kuaishou at the forefront of technological breakthroughs, leveraging its existing business context for sustained competitive advantage through innovative, disruptive technologies.

Internal reports suggest that Kuaishou’s advancements in AI technology are walking hand-in-hand with its organizational reshaping

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