Douyin Struggles to Meet E-Commerce Sales Targets Amid Decreasing Consumer Demand

Thursday, 25 July 2024, 12:00

Douyin, owned by ByteDance, has reportedly fallen short of its e-commerce sales targets for the first half of the year. According to an estimate by Goldman Sachs, the platform's gross merchandise value is expected to grow by only 24% in 2024—a significant drop compared to growth rates from previous years. This trend reflects broader challenges in the Chinese consumption landscape, highlighting the need for strategic adjustments in response to shifting consumer behaviors.
South China Morning Post
Douyin Struggles to Meet E-Commerce Sales Targets Amid Decreasing Consumer Demand

Overview of Douyin's E-commerce Performance

ByteDance-owned Douyin has struggled to meet its e-commerce sales goals for the first half of the year, revealing signs of declining consumer spending.

Growth Rate Predictions

According to estimates from Goldman Sachs, Douyin's gross merchandise value growth rate is expected to reach 24% in 2024. This figure indicates a steep decline compared to the growth rates observed in the past two years.

Implications for the Market

  • Decreased Consumer Spending: Significantly impacts Douyin's revenue potential.
  • Strategic Adjustments Needed: The company may need to reevaluate its business strategies to adapt to changing consumer preferences.

Conclusion

The challenges faced by Douyin underscore a broader issue within the Chinese consumption landscape. Without proper adjustments, the platform could continue to face difficulties in achieving desired growth rates.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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