Why Douyin Leads the Social Commerce Revolution in China

Last updated on July 17, 2024

The digital landscape in China is shifting faster than a Ferrari on an open road, and the latest juggernaut to hit the market is Douyin. Yes, Douyin — the Chinese short video app owned by ByteDance, and quite possibly the biggest retail revolution since e-commerce first showed up on our doorsteps.

Douyin, which you might know as TikTok in the rest of the world, only dipped its toes into the commerce pool 2 years ago. And yet, it’s already racked up a staggering US$150 billion GMV in 2021 alone. This year, it’s set to smash those figures and is rapidly eating away at the market share of e-commerce titans like Tmall and JD. How, you ask? With a potent mix of viral content, seamless shopping integration, and the ever-fickle tastes of China’s millennial and Gen-Z shoppers.

But here’s the kicker — Douyin isn’t just another social media app with a shopping feature. It’s a phenomenon. While WeChat and Xiaohongshu (Red) have been dabbling in e-commerce, Douyin has been sprinting ahead, leaving its competitors in the dust.

In 2021, a jaw-dropping 70% of digital commerce growth in China came from Douyin! It’s becoming the must-have platform for any brand serious about cracking the Chinese market. In the fast-evolving world of e-commerce, Douyin is the new frontier that no brand can afford to ignore.

Overview:

Why China Dominates Social Commerce

In China, more people are shopping online via social media than ever before. It’s projected that China’s social commerce market will skyrocket to over US$1 trillion by 2024. Instead of hunting for specific products, Chinese consumers now prefer a more leisurely approach, favouring browsing and interaction.

And guess what? Social commerce fits this like a glove.

Unlike traditional ads, social commerce revolves around social content. It’s not about shoving products down your throat. It’s about engaging stories and entertaining content that happen to feature products.

The secret behind Douyin’s success is simple: it’s a social platform first and foremost. It lures in hundreds of millions of users daily, not because they want to shop, but because they want to be entertained. The content here is high-value, social, and incredibly relatable.

Then comes the genius bit: the newly developed commerce functionality lets users make instant, hassle-free purchases without ever leaving the app.

Picture this: you’re scrolling through your social feed for a bit of fun, and you stumble upon a snazzy product being showcased. It’s love at first sight. You can buy it right then and there, all within the app. No jumping through hoops, no switching between apps, just a seamless purchase that’s on its way to your doorstep.

Simple, isn’t it?

Douyin: More Than Just TikTok

Western audiences often hear that Douyin is TikTok. While TikTok did spring forth from Douyin and they share many similarities, the 2 platforms are like siblings who’ve chosen completely different paths in life. More importantly, users of these two short-video apps can’t interact with each other.

Both Douyin and TikTok flaunt the same addictive short-video format, but Douyin’s features are far more advanced.

Douyin has an array of bells and whistles that TikTok doesn’t, including:

Douyin Navigation

Sure, both platforms boast trending hashtags and banner ads, but Douyin’s homepage also showcases rankings of top accounts across various categories, from celebrities to brands.

Then there’s the search algorithm. Douyin’s algorithm ranks content from accounts with more followers and verified business accounts higher, making it a goldmine for brands. TikTok’s algorithm, in contrast, is more democratic, focusing on a post’s likes, comments, reposts, and engagement rates.

The demographics differ as well.

Most Douyin users are aged 24 to 45, educated, and well-informed. TikTok, meanwhile, is teeming with a younger crowd.

And while both platforms see funny, relatable videos topping the charts, Douyin users have a penchant for knowledge-based content. They’re not just looking for laughs. They want to learn something new while they’re at it.

The Douyin Commerce Revolution

Douyin has recently taken its commerce game to the next level, joining the ranks of other Chinese social media heavyweights like WeChat and Xiaohongshu with its own flagship stores.

Launched in March 2021, these stores are decked out with all the familiar trappings of traditional e-commerce sites: banners, in-store search bars, categories, and vouchers.

With just a few taps, users can buy a product featured in a video or livestream without ever leaving the app. It’s as smooth as butter.

This makes Douyin an incredibly potent marketing platform for brands and advertisers. Brands can partner with influencers (KOLs) to boost awareness and rake in direct sales for their products all in one place.

Product Listing of Jamieson Vitamin C Chewable

How Douyin's Commerce Works

Douyin’s algorithm is a master matchmaker, providing users with content that perfectly aligns with their interests and preferences.

For example, if a woman watches short skincare videos daily, Douyin will start serving her more skincare content. When the perfect skincare product pops up in a video, she can buy it instantly without leaving the app.

Douyin also categorises customers based on their searches. If someone is searching for beauty tools, they’ll likely be shown more beauty and personal care content and products, upping the chances of making a sale.

Everything a user does, from browsing products to making purchases, helps Douyin fine-tune its content recommendations. This means users see ads and products that are increasingly relevant to them, resulting in more conversions and repeat purchases.

Douyin Social Commerce Journey

Step 1: Content

Users view livestream and become interested in the product.

Step 2: Interest

Users click on the embedded link and product page pops up.

Step 3: Purchase

Users click "Buy Now" Button and enter payment details.

Marketing on Douyin

Douyin is the hottest short video app in China right now, with users spending over 2 hours a day on the platform and frequently discovering new accounts. This presents a golden opportunity for brands to gain exposure and followers quickly.

But the perks of being an early adopter don’t stop there.

Advertising on Douyin is not only cheaper than on any other platform with a similar audience size, but it also yields far better results. With fewer advertisers on Douyin compared to other platforms, the ad inventory is far less crowded — think Facebook advertising in North America circa 2014.

And because ads on Douyin are integrated into the discovery process, users are more receptive to commercial content and short sponsored videos, as long as the content is entertaining.

In short, brands that get in early will see the best return on ad spend (ROAS) of any channel or platform in China — for the foreseeable future, at least.

Why Douyin Commerce is Unbeatable

Douyin acts as a direct bridge between creators and consumers, revolutionising product discovery with its short videos and livestreams. Its clever algorithm ensures the right content reaches the right audience, making it a potent marketing tool for brands.

Douyin’s short videos draw massive traffic, especially from Gen-Z and millennials, who then flock to engaging livestreams featuring strong, distinct personalities. These influencers, or KOLs, captivate viewers with their unique styles and loyal followings.

The brilliance of Douyin lies in its seamless shopping experience. The entire journey, from discovering a product to purchasing it, happens within the app. Users visit Douyin to be entertained or learn something new, and shopping becomes a delightful by-product. Engaging content and casual product mentions by KOLs often lead to instant, in-app purchases.

This organic flow makes Douyin a fantastic channel for brands in various categories like FMCG, fashion, beauty, packaged foods, and health and wellness. The closed-loop system ensures high conversion rates and repeat purchases, making Douyin a powerful platform for social commerce. It’s like a never-ending shopping carnival where users can watch, get hooked, and buy without ever leaving the app.

Douyin's Top 3 Livestreams on September 28, 2022

1st Place

Amateur cover singer

2nd Place

Group livestream karaoke

3rd Place

Monkeys in national park

Partner with WPIC for Douyin Success

As social commerce has become the norm in China, most social media platforms have integrated e-commerce into their apps. But no one has nailed it quite like Douyin.

For brands looking to break into the Chinese digital commerce market, Douyin marketing is arguably the best way to reach Gen Z and millennial consumers. Despite launching its commerce feature just 2 years ago, Douyin has already cemented its place among the top 5 digital commerce platforms in China.

Whether you’re an established brand or a small start-up, navigating China’s digital landscape is essential. That’s where we come in.

At WPIC, we’re not just any partner — we’re a verified Douyin Partner and the first in the West.

We offer brands comprehensive content and commerce solutions for Douyin, ensuring your success from day one. Our team covers everything you need to run your Douyin account seamlessly. From creating short videos and managing flagship stores (both crossborder and domestic) to partnering with top KOLs for impactful livestreams, developing marketing strategies, and managing warehousing and logistics, we’ve got it all covered.

Ready to take your brand to new heights in China’s booming market? Let’s make Douyin work for you.

Contact WPIC today and watch your brand thrive on China’s most dynamic social commerce platform.

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