Kuaishou to invest 3 billion yuan in Chengdu to build live-streaming e-commerce headquarters

Chinese short video platform operator Kuaishou will invest 3 billion yuan (US$424 million) to build its live-streaming e-commerce headquarters in Chengdu, capital of southwestern China's Sichuan province, amid live-streaming’s breakthrough success as a key sales channel during the coronavirus health crisis.

Located in the Chengdu Hi-tech Industrial Development Zone, Kuaishou wants to build a live-streaming ecosystem in the city with a 5G short video industry base and a short video incubator, according to a company statement on Wednesday.

“We will … give full play to the advantages of technology, products and platforms to attract multichannel network (MCN) institutions, well-known celebrities and brands to jointly build a good live broadcast e-commerce ecosystem,” said Yu Haibo, senior vice-president of Kuaishou.

Live streaming e-commerce is trending in China as a growing number of traditional merchants move sales online following countrywide lockdowns and social distancing measures imposed during the Covid-19 pandemic.

“Shoppertainment” is changing the way people shop online, with influencers and content creators playing a more important role in driving retail transformation and consumption habits, enabling short video platforms such as Kuaishou and Douyin, with their roster of hugely popular influencers, to participate in the e-commerce market through partnerships with online sales platforms.