Up until last year, sellers were able to directly embed links to online marketplaces like Taobao and JD.com in their videos and livestreams. But will it keep up this momentum? Below, we look at Douyin’s evolution from entertainment app to rising e-commerce star - and what these changes could mean for brands and tech foes alike. Now, it has its eyes on a loftier goal of $150 billion for 2021. In 2020, Douyin’s gross merchandise value (GMV) topped $77 billion, more than three times that of 2019. Thanks to the advancement of algorithm-based recommendation technology, “ Douyin’s e-commerce has seen exponential increase in user growth and transactions,” a company spokesperson told Jing Daily. Over the last year, China’s TikTok has been building out services to capitalize on what it calls the “interest-based economy,” a type of e-commerce that connects consumers and merchants through product discovery. This participation in 618 is the culmination of Douyin’s recent e-commerce efforts. Backed by 600 million active daily users, the ByteDance short-video platform went full force with its 25-day “ 618 Good Things Festival ,” offering steep discounts, tens of thousands of livestreams, $1.5 million is subsidies, and even an interactive game that allowed users to buy certain items for practically nothing.ĭouyin’s 618 activities included the release of “The Interaction City” game (left) and a livestream with Chinese singer He Jie (right). Unfazed by these heavyweights, Douyin also entered the ring for the first time. Meanwhile, rival Tmall doubled its number of participating brands, pushing turnover to a jaw-dropping $107.9 billion. From June 1-18, JD.com tripled its total transaction volume to $53 billion compared to 2020, helping luxury names like TOD’s and Bally surge 232 and 600 percent in sales, respectively. ![]() With the annual 618 e-commerce shopping event starting a week earlier than usual, tech giants were out for blood. Last weekend marked the end of China’s second biggest shopping festival - the fiercest consumer battlefield in the first half of the year. Already, beauty giants and homegrown brands have implemented the new feature, with the L’Oréal Group seeing $3.4 million in GMV within a week. Like Tmall and JD, Douyin has rolled out its own flagship stores to help ensure product authenticity and boost sales. But Douyin Pay is unlikely to give WeChat Pay and Alipay - responsible for 90 percent of all mobile payments in China - serious competition anytime soon. It estimates Alipay commands 55% of the market and that Tencent’s fintech business, most of which is WeChat Pay, has 39%.Ramping up its e-commerce initiatives over the last year, Douyin’s GMV in 2020 topped $77 billion, more than three times that of 2019.īy launching its own payment service, Douyin has started to close its e-commerce loop. The country’s mobile banking market logged some CNH 56.2 trillion ($8 trillion) worth of transactions in the last three months of 2019, according to domestic consultancy Analysys. Other internet giants, such as e-commerce giant JD.com and food delivery service Meituan, have also established their own payment methods. The licence allows Douyin, Toutiao and other ByteDance services to offer payment features. Last September, a company controlled by ByteDance founder, Zhang Yiming, bought out a payments solution provider called, Wuhan Hezhong Yibao Technology. See also: Ant sets up working group to overcome Chinese regulatory requirements Its first-quarter figure represents a 130% growth in revenue year-over-year, according to Reuters, which makes the move towards payments seems like a natural progression for the company to want in on the action.īyteDance snapped up a payments licence by acquiring a third-party payments firm. ![]() Now, users of the app can checkout and pay for goods using Douyin Pay instead of other options.ĭouyin’s parent, ByteDance, the Chinese start-up behind TikTok and other popular social networking apps reportedly generated $5.6 billion in revenue in the first three months of 2020. “The set-up of Douyin Pay is to supplement the existing major payment options, and to ultimately enhance user experience on Douyin,” a Douyin spokesperson tells Reuters.īrands and retailers can already redirect users to a product page by including a link in a video. Douyin Pay (Douyin Zhifu) has been added to the app’s options.
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