The e-commerce arm of Kuaishou, TikTok’s rival in China, announced the establishment of a real estate business center through an internal letter in April this year, 36Kr reported on Saturday. The person in charge of the new center reports directly to Xiao Gu, the head of Kuaishou’s e-commerce unit.
The internal letter pointed out that “the establishment of a real estate business center is to meet the needs of Kuaishou users, help homeowners sell homes more efficiently, and explore a business model of large-scale product offline transactions. scale in the Kuaishou ecosystem”.
According to company insiders, Kuaishou started researching the real estate industry since 2019. Last year, the e-commerce unit set up a special team to explore the real estate business model in live e-commerce, especially in the second and third tier cities in China to avoid direct competition from the leading real estate service platform KE Holdings. The real estate business center has set a goal to build a workable model and hit the milestone of 10 billion yuan ($1.50 billion) in total revenue this year.
According to the search results in the Kuaishou APP, the platform’s e-commerce real estate business page is called “Kuaishou Ideal Home”, and the places covered include cities in northern China such as Tianjin, Changchun, Dalian, Linyi and Shenyang. Additionally, properties owned by major property developers such as Gemdale, Country Garden and Sunac have joined the program.
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One of the livestreamers engaged in selling real estate on the platform revealed that Kuaishou e-commerce has turned some real estate KOLs, real estate developer agencies and consultants into official hosts. These hosts then started live streaming online and apartment viewing offline. Official hosts can get support including increased traffic, grants, and training, and can also get preferential treatment from developers through Kuaishou.
A real estate industry insider said Kuaishou’s decision was not surprising. The insider had seen the case of a host on the platform named Wang Beile, and thought it was natural for Kuaishou to step into the real estate business. According to public reports, in 2020 and 2021, Wang Beile sold about 1,000 apartments through Kuaishou every year, with total sales of 2 billion yuan ($300 million).