The Chinese version of TikTok has managed to increase gross merchandise volume by 46% over the past 12 months.

Douyin, the Chinese version of TikTok, has been able to grow its gross merchandise volume by 46% over the past 12 months. According to Wei Wenwen, president of e-commerce at Douyin, the platform has increased gross merchandise volume (GMV) by 46% over the past 12 months.

While this figure can be interpreted as a slowdown from the 80% year-over-year growth recorded between 2022 and 2023, it stands in stark contrast to Alibaba's 5% GMV growth in the last financial year.

Through Douyin Mall, its own online store, Douyin generated €572 million in gross merchandise volume in 2022, thanks in particular to the food and beverage and beauty and skincare categories.

Meanwhile, the Douyin marketplace, launched in 2022 and located alongside the main video stream, posted 86% growth. In addition to this, the liveshopping platform racked up 3.8 billion daily views on live streams, while the number of people staying on streams increased by 33% compared to last year.

However, all of Douyin's growth is taking place against a backdrop of a weakening Chinese economy, facing weak consumer spending and deflation. The average order value fell by 40% on the short video platform, a story that is repeated on other platforms. In response to this, Douyin has eliminated the possibility of any product being labeled as “the cheapest online.”

Liveshopping, the winning formula for selling on Douyin

Since 2018, Douyin has incorporated the functionality of purchasing products into its short video platform, with which it has been gaining market share, reaching the top of the growth ranking in social commerce.

The platform has a content creation model that leads users to discover potential needs and perfectly matches them with relevant products, which means that brands, instead of meeting a market need, dedicate themselves to generating the need.

On the other hand, live video broadcasting or liveshopping is a key factor that has gained a lot of popularity within Douyin and has managed to drive a greater share of total sales of luxury or high-value brands.

An example of this is Zara, the flagship brand of the Inditex group, which has known how to adapt to the rules of live shopping on Douyin while maintaining its elegant and minimalist style, without falling into the "teleshopping" concept. Its success is demonstrated by the data: the brand's live live shopping on Douyion has managed to attract an average of 800,000 unique viewers per program. In addition, in China, during the first three months of 2024, Zara managed to sell out most sizes in 50% more products than in the same period in 2023. In the near future, the Inditex brand plans to replicate this success story in the Western world.

https://marketing4ecommerce.net/douyin-no-solo-triunfa-como-red-social-asi-es-su-exito-como-plataforma-de-comercio-electronico-en-china/