Douyin (China’s Tiktok): The New E-commerce Landscape for Brands in China

10 June 2022

China’s premiere short-video platform, Douyin, aka Tiktok in the West, boasts over 600 million daily active users. Last year, Douyin has been building its own in-house e-commerce ecosystem, with support for closed-loop payments that can be made directly from within the app.

Today, brands like Lancome, Estee Lauder and Coach have tapped into Douyin’s enormous sales potential with official stores on the app. Let’s find out why Douyin is such a unique e-commerce model.

Normally, when browsing a typical e-commerce platform like Taobao or JD.com, users already have an idea of the product or brand they are looking for. On Douyin however, the consumer journey takes the form of interest-based e-commerce. This is much more passive, and in some cases helps induce consumption without the user even being aware of it.

The main driver of Douyin’s growth as an e-commerce platform is in the way it leverages its unique position as an interest based, creator-centric content sharing platform. By helping users discover their needs, Douyin enables targeted brand content to reach enlightened viewers, increasing engagement and interest in brand-related posts.

By collecting data on what types of content the user views, Douyin will be able to push relevant KOL and KOC content to interested viewers, increasing the likelihood of engagements, clicks and purchases. The AI is intelligent enough to funnel users into a broader category of interests. For example, a user who views, interacts and searches for lipstick content will also be shown beauty content including makeup, eye shadow and perfumes.

Douyin has been proactively providing support to new brands launching on the platform. Earlier in Q2 2022, the platform launched its Douke tool, helping brands attract more traffic to its live shopping channels.

In another move towards expanding its e-commerce capabilities, Douyin has tapped into the second-hand goods market with a new component on its also recently launched e-commerce platform. Douyin’s Second-hand Goods section is dedicated to (re-)selling items such as bags, watches, jewellery and apparel through live-streaming. Douyin parent company Bytedance even operates its own collection and delivery service.

Luxury skincare brand Clarins experienced firsthand the massive opportunities offered by Douyin. To promote its famed Double Serum, the brand launched a KOLC marketing campaign on Douyin with over 350 influencers. Douyin’s passive format enabled Clarins to foster consumer trust in the brand through authentic and informative content. This campaign went on to garner more than 21.5 million impressions and over 119k interactions with a total of 380 social media posts.

All signs point to enormous potential in e-commerce for Douyin, with the platform more than tripling its e-commerce volume in one year. Within a month, 200 million short videos and over 9 million live-streams were launched on Douyin E-commerce. Furthermore, the latest report from Bytedance revealed that from 1 May 2021 to 30 April 2022, the gross merchandise value (GMV) of e-commerce on Douyin was 3.2 times greater than the same period the year prior. More than 10 BILLION products were sold during this time period. With the platform predicting that 50% of future sales will come from new industries, this is the best time for brands to begin exploring and establishing their official presence on Douyin.

Ready to explore all the possibilities Douyin has to offer your brand? Give us a call, pop us an email, or talk to our team directly on WeChat!

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About 评价达人 – PJdaren:

Since 2016, PJdaren has helped some of the world’s largest brands build trust, collect insights and drive sales in China by engaging Key Opinion Consumers (KOCs) and Key Opinion Leaders (KOLs) through our state-of-the-art influencer marketing solutions.

Our full-service solutions connect brands with our over 4 million-strong KOC and KOL community. We facilitate targeted, authentic conversations and content, enabling brands to capture the market with measurable results.