In 2024, some of China’s leading internet companies, including Pinduoduo, Douyin (TikTok’s Chinese counterpart), and Kuaishou, reported sluggish growth.
Their Q2 financial results signal a potential turning point after a decade of rapid expansion, primarily driven by recommendation algorithms. As these platforms face increasing competition and saturation in their respective markets, the once-powerful engines of growth are showing signs of slowing down.
Declining Growth Across Key Sectors
Kuaishou, a short video and livestreaming platform, saw a sharp decline across all major revenue streams in Q2.
Its online marketing services grew by 22.1%, down from 30.4% a year earlier. Meanwhile, live streaming revenue dropped by 6.7%, and e-commerce-related services increased by just 21.3%, compared to a 61.4% surge in the same period last year.
This trend of declining growth is echoed across China’s internet giants. Douyin, which once enjoyed soaring popularity, is seeing it...
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