JAKARTA – ByteDance, the company that owns TikTok from China, is looking for its next big hit by diving deeper into the social media lifestyle sector with the Kesong app. This app recommends shopping and lifestyles similar to the current market leader, Xiaohongshu.

Kesong, which launched last week, allows users to share photos, videos and posts about fashion tips and shopping experiences.

The app mimics Xiaohongshu, is often compared to Meta Platforms Inc's Instagram and is widely regarded as the embodiment of "growing grass". This is the idea that reviews can entice readers or followers to buy a product or service.

Fashion and luxury brands often turn to Xiaohongshu influencers who can reach millions of wealthy users in China. Overseas, Xiaohongshu is known as “Red” in countries including Singapore, Malaysia, Australia, Canada, and the United States.

Hardware and software maker ByteDance currently has a capitalization of around $300 billion in recent trading. They have also been known as application manufacturers.

ByteDance has also produced a string of hits from news aggregator Toutiao to short video apps Douyin and its overseas equivalent TikTok, even being considered the most successful Chinese app overseas.

Now ByteDance is trying its luck on other apps by "planting grass" in 2018 with Xincao. But the application was short-lived.

They are trying again in 2020 with Sharee, which is aimed at overseas markets. Later renamed Lemon8, the app has over a million downloads in Japan and has since expanded to Thailand.

Lemon8 is exploring the possibility of expanding into Australia, two sources at the company told Reuters.

The app is overseen by Alex Zhu, senior vice president of product and strategy at ByteDance and former head of TikTok.

"ByteDance is very determined to break into the 'high-brow' market (with Kesong and Lemon8) to achieve even higher ARPUs," said a source at ByteDance, referring to average revenue per user.

While ByteDance itself did not respond to requests for comment from the media about the report.


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