📈 Douyin's Impressive Growth
ByteDance’s Douyin, launched its e-commerce business in 2020, and has quickly become a significant player in China’s online shopping market. Between August 2023 and July 2024, Douyin's GMV grew by 46%, reaching new heights, according to the platform’s president Wei Wenwen. Although growth slowed compared to 80% from May 2022 to April 2023, Douyin still outpaced Alibaba and JD.com, who reported 5% and 5.6% GMV growth, respectively.
💡 Leveraging Short-Video Power
Douyin’s advantage lies in its short-video format and live commerce, where users can purchase items while watching streams. The platform saw 3.8 billion daily views in live commerce from August 2023 to July 2024. Douyin’s live streams kept users engaged 33% longer than before, giving it a unique edge over traditional e-commerce giants like JD.com and Pinduoduo, both of which struggle to compete with such high engagement rates.
📉 Facing the E-commerce Price War
Despite impressive growth, Douyin is battling a price war. The average value of orders on Douyin dropped 40% to $11 in early 2024. This has forced the platform to tweak its recommendation algorithm to avoid unhealthy competition, stopping labels like "cheapest online." With the government’s stance against predatory pricing, there are signs that the fierce competition in China’s e-commerce sector may cool down.
📊 Future Plans for Douyin
Looking forward, Douyin is set to invest heavily in its e-commerce division. The platform plans to nurture 100 new influencers with over 1M followers and boost categories like pet products, electronics, and makeup. With more than 600 million daily active users, Douyin's potential for growth is vast, even as it transitions into a more regulated and competitive e-commerce environment.
Will Douyin overtake Alibaba and JD in China's e-commerce?
