Douyin's E-Commerce Ascent: TikTok's Chinese Counterpart Captures Market Share

Douyin's E-Commerce Growth

ByteDance's Douyin has emerged as a powerful player in the e-commerce space, fostering a significant increase in gross merchandise volume (GMV) by 46% year-on-year.

Competitive Landscape

As Douyin escalates its foothold in online shopping, traditional titans like Alibaba and JD.com have struggled to maintain strong growth amid economic challenges.

• Alibaba's marketplaces, Taobao and Tmall, reported a modest 5% growth in GMV.
• PDD Holdings' Pinduoduo underperformed, with GMV growth below 30%.
• JD.com similarly lagged, reporting just 5.6% growth.

Live Commerce Dynamics

Douyin effectively utilizes its video prowess to drive e-commerce. Live commerce witnessed 3.8 billion daily views from August 2023 to July 2024. Average session times extended by 33%.

E-Commerce Innovations

• Douyin introduced a marketplace channel next to its short-video feed, which displayed product columns, replicating the functionalities of established platforms.
• GMV through this channel skyrocketed 86% in the year ending July 2024.

Future Strategies and Challenges

With over 600 million daily active users, Douyin is exploring diverse income avenues through e-commerce amidst an ongoing price war that decreased average order values.

• Plans to recruit 100 new influencers and bolster the growth of key product categories have been set.
• Recent policy shifts signal potential stabilization in pricing strategies for Douyin and competitors.