But with Douyin pulling the plug on its support for third-party marketplaces, she has decided to shift her focus to her Douyin store, helping her to sell a few more of her most popular items every month.ĭouyin reported a 45-fold increase in GMV for stores on its platform between January and November last year, as the number of merchants jumped 17 times. The woman added that it was the traffic redirected from Douyin that kept her business alive on Tmall in the latter half of 2020. As customer acquisition costs for small and medium brands keep rising, I am looking for new opportunities on other platforms,” explained one Hangzhou-based business owner, who is trying to sell her four year-old boutique on Tmall for Rmb100,000. “Competition among womenswear players on Tmall is brutal. The short-video platform’s new interest in e-commerce is also diverting a growing number of merchants away from Alibaba’s Tmall, reports Zijin Caijing, a financial news outlet.
Over 200,000 merchants have joined its e-marketplace since October, data from Ebrun, a Beijing-based consultancy, suggests.
Selling goods from Suning, LG Household & Healthcare, Winoa, Be & Cherry ( see WiC485) and many other brands, Douyin’s big promotional campaign in January reported nearly Rmb21 billion in gross merchandise value. The new venture has been gaining traction. No longer satisfied as being a marketing channel that directs traffic to third-party marketplaces (a service that brought in Rmb7 billion in fees from Alibaba’s Taobao in 2019), Douyin launched an e-commerce platform of its own last year. The announcement came a week after the Beijing-based company added a new payments feature on its trendsetting short-video app Douyin (known internationally as TikTok).įor Bytedance the push into financial services is designed to underpin its growing ambitions in e-commerce, notes 21CN Business Herald, a local newspaper. Eight year-old Bytedance announced at the end of January that it would step into the breach, disbursing red packets of its own worth Rmb1.2 billion ($186 million) on Chinese New Year’s eve as the state broadcaster’s exclusive “interactive” partner. Pinduoduo’s loss is another’s gain, however. Jack Ma later compared the overnight shift that the campaign induced in the e-payments balance of power to the Japanese attack on Pearl Harbor.
That supercharged WeChat Pay’s customer base, closing the gap substantially on leader Alipay (which had taken eight years to build its user base). As many as 200 million people, eager to get a chance at a cash gift during the four-hour countdown to the Chinese Lunar New Year, linked their bank cards to the instant messaging platform (literally) overnight.
It is a significant setback: six years ago sponsoring the same initiative catapulted Tencent’s WeChat Pay into the forefront of the country’s digital payments market. But a PR disaster for Pinduoduo this year ( see WiC524) has seen it lose the chance to take centre-stage on mainland China’s most-watched television show.Īfter two employee deaths and a viral video that sparked scrutiny of its intense working culture last month, Pinduoduo was booted off this year’s Spring Festival Gala on state television, where it was planning to sponsor a vast exchange of virtual ‘red packets’ – known as hongbao – containing cash gifts. How much do public relations crises cost? It depends on the gaffe, of course. Its name in China is Douyin and it plans to list in Hong Kong this year
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