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as a photo-sharing app, Kuaishou later pivoted into a platform that allows users to create and share short videos. Backed by the tech giant Tencent, Kuaishou also has a gaming interface and allows users to play mini-games within the app without downloading and registering for another stand-alone app separately (Huang, 2018). Serving almost the same function with highly similar features, Kuaishou and Douyin has a large amount of overlapping users. By December 2018, Kuaishou sported a MAU of 285 million (QuestMobile, 2019). Kuaishou’s business model is also very similar to Douyin, with advertising as the substantial part of its revenue. We therefore think Kuaishou is a good proxy to compare Douyin’s user stickiness to. From Figure 14 we can see that Douyin’s user stickiness has been around 48% for most of the 2018 and shows no sign of improvement. As said, user stickiness is critical in social media as it reflects the actual engagement level, which can also be seen as customer’s loyalty. The flat curve of Douyin’s user stickiness also implies that the user growth is very likely stagnated at its current status. 70% 60% 50% 40% 30% 20% 10% 0% 56% 53% 56% 50% 47% 58% 58% 49% 49% 47% 36% 46% 37% 47% 41% 48% 48% 49% 52% 51% 49% 50% 46% 47% 48% 48% Douyin Kuaishou Figure 14: Development of user stickiness of Douyin and Kuaishou, 2018-201926 We projected Douyin’s future growth of MAU and DAU to support and justify the argument. The result is shown in Figure 15 below. 26 Source: QuestMobile - 42 - DAU/MAU [%]PDF Image | Analysis of ByteDance with a close look on Douyin TikTok
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