TikTok Special Report on Overseas Internet Industry: Looking forward to the future, opportunities and challenges coexist

(Report producer/author: Pacific Securities, Chen Tianjiao) 1.
User growth: how much room is left for TikTok's long-term user growth.
1.1.
In the short term: TikTok faces competition from Internet companies such as Fasthand, Likee, Instagram, etc.
Based on the active user data in February 2021, we can divide overseas short video independent applications into three echelons: TikTok is in the first echelon with 1 billion MAUs, The second tier consists of China Sailing APP Kuai, Snack Video and Likee;
After the Indian government banned TikTok, a large number of short video applications emerged in India.
Under the effect of demographic dividend, MAUs remained at around 30 million, and they were in the third echelon with American short video applications Tiller and Dubsmash.
In addition to the above independent applications of short videos, YouTube, Instagram and Snapchat have also been inspired by TikTok to lay out short video tracks, mainly by introducing YoutubeShorts, Instagram Reels and Snapchat Sportlight in the form of built-in short video functions in the main app.
However, unlike TikTok, where the global market is booming, the above short video applications generally only have a certain number of users in some markets for various reasons.
Therefore, after combining the user data and the main countries covered, we believe that the main threats to the further growth of TikTok users include: 1) Kuai and Snack video, the short video apps of Fasthand.
According to the late LatePost news, Fasthand will prepare a budget of more than 5 billion yuan in 2021 to support the development of overseas businesses.
Under the heavy fund, the user data of Kuai and Snack Video will grow strongly.
According to the 2021Q2 financial report of Fasthand, the monthly active users of short videos in overseas markets have reached 180 million.
Among them, Kuai mainly targets the Latin American market represented by Brazil and Mexico;
Snack Video, on the other hand, focuses on the Asian market represented by Indonesia and Pakistan.
2) Get together with Time's short video app Likee.
According to the financial report of Happy Times 2021Q2, the global monthly active users of Likee shrank to 92 million under the influence of the ban on the Indian market, but they still cultivated the Russian and Indonesian markets by virtue of refined local operations and AI empowerment.
3) Short video function added in YouTube, Instagram and Snapchat.
Taking Reels and Spotlight, the short video functions added to Instagram and Snapchat, as an example, Reels mainly tested in Brazil, Germany and France in the early stage, but the response was general.
The turning point occurred in 2020 when TikTok was in India and the United States