The "Laotie" Economy: Understanding Social Commerce and Trust on Kuaishou

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  • Source:The Silk Road Echo

If you've ever scrolled through Kuaishou, China's answer to TikTok with a twist, you've probably heard users shout out "Laotie!"—literally meaning 'old iron,' but slang for 'bro' or 'homie.' It’s not just friendly banter. It’s the heartbeat of a booming digital economy built on trust, authenticity, and raw human connection. Welcome to the Laotie economy.

Unlike polished influencers on other platforms, Kuaishou thrives on realness. Farmers livestream harvests, factory workers sell handmade goods, and small-town creators build empires—all by calling their followers laotie. This sense of brotherhood fuels social commerce like no other platform. In 2023, Kuaishou reported over 620 million monthly active users (MAUs), with more than 120 million content creators actively selling goods via livestreams.

The Power of Trust in Social Commerce

While Douyin dazzles with aesthetics, Kuaishou wins hearts with relatability. Users aren’t chasing fame—they’re building communities. A seller from Yunnan doesn’t need a PR team; they just need to show their hands covered in soil while harvesting mushrooms, saying, “This is what I feed my family.” That honesty converts.

Data backs this up. According to QuestMobile, conversion rates in Kuaishou livestreams are 3x higher than traditional e-commerce platforms. Why? Because when your laotie recommends something, you believe them.

Platform MAUs (2023) Livestream Conversion Rate Top Demographic
Kuaishou 620M 6.8% Tier 3-5 cities
Douyin 750M 4.1% Tier 1-2 cities
Taobao Live 380M 2.3% National

How the Laotie Economy Works

At its core, the Laotie economy turns followers into family. Creators share daily life—eating, working, even crying—and fans respond with loyalty. This emotional equity translates directly into sales. One farmer in Hebei sold 12 tons of apples in 3 hours simply by telling viewers his orchard was struggling.

Kuaishou’s algorithm also favors consistency over virality, rewarding long-term engagement. The result? Deeper bonds, repeat customers, and sustainable income for millions of ordinary people.

Why Brands Can’t Ignore It

Global brands—from L'Oréal to Pepsi—are now partnering with mid-tier Kuaishou creators, not celebrities. Why? Because a laotie-trusted face moves product faster than any A-lister. These collaborations feel less like ads and more like recommendations from your cousin.

The future? Hyper-localized, emotionally driven commerce. As urban markets saturate, the real growth lies in China’s vast countryside—where Kuaishou already reigns.