"When you have to start from being a social network app and then enter into the short-video space, you have to build up a whole e-commerce system to support it. While some analysts see Channels as Tencent's best chance to catch up with ByteDance, others believe it will be tough for it to become as big as Douyin, the Chinese version of TikTok. In November, Tencent President Martin Lau said Channels' advertising revenue was on track to reach 1 billion yuan in the fourth quarter of 2022.įor TikTok and Douyin, research firm Insider Intelligence estimated in April last year that ad revenues would together reach more than $30 billion for 2022.Ĭhannels has also started charging e-commerce merchants a 1% to 5% commission fee from this month.ĭouyin has been charging 1% to 10% since 2020. So naturally you come across a lot more ads with short videos," Li said. "When you are already scrolling and come across an ad, you don't think twice about it. TikTok requires content creators to have more than 10,000 followers to start monetising.Ĭhannels has also opened up ad opportunities "like never before", said Li Yikai, general manager of Americas and EMEA at ad agency Nativex, versus WeChat that pushes a few ads a day. Tencent has also slashed the threshold for monetisation on Channels, allowing users with as few as 10 followers, versus 1,000 earlier, to start making money through advertisements. ![]() If the host recommends a product during the chat, a link can pop up on the screen to take viewers to a Mini Program where they can buy the product using WeChat Pay. Tencent Meetings is a Zoom-like teleconference service while mini programs are like apps on Apple's iOS and Google's Android operating systems but less data intensive and run within WeChat.Īn integration would allow, for example, a podcast host to conduct an interview on Meetings and livestream it on Channels. Tencent has been integrating many of its products, ranging from Tencent Meetings to WeChat Mini Program, with Channels to help creators livestream content just like the U.S. ByteDance does not publicly disclosee official GMV numbers. Within less than a year, Douyin sales already represent ~15% to 20% of our clients’ China business, and we expect to see that figure to grow considerably in the coming year.But Douyin was already aiming to bring its GMV to over 1 trillion yuan ($155 billion) in 2021, a six-fold jump from 2020 levels, sources said at the time. ![]() We also witnessed the resilience of the Douyin consumer when the channel was the first to bounce back from the demand decline during China’s spring lockdowns.Īt Samarkand, we help our partners succeed on Douyin by connecting them with the relevant livestreamers and identifying with them the appropriate, visually-impactful hero products that will generate the most engagement. Since launch, our average order value has been around ¥420 or £53. We opened the first and only multi-brand cross-border beauty store on Douyin, featuring six premium brands. Samarkand Global's experience of launching premium beauty brands on Douyin has shown the opposite. The industry was initially sceptical of Douyin users’ willingness and ability to purchase luxury products. □ There is a large group of avid luxury beauty shoppers on Douyin. These consumers live in Tier 1, 2, 3 cities, tend to be quite impulsive in their shopping behavior, and eager to discover trending, niche products rather than purchase more established brands. With its interactive content, Douyin speaks to a younger Gen-Z audience born in the 1990s and 2000s who is addicted to short videos and livestreaming. While platforms like Tmall mainly target traditional luxury consumers in Tier 1 and 2 cities, Douyin’s consumer reach is more extensive. □ The platform’s consumer reach extends beyond major cities. The platform now plays a central role in Chinese e-commerce, and aims to account for more than 50% of industry growth in the coming years. In China, the short video and live-streaming platform reached ¥22B ($3.28B) in gross merchandise volume (GMV) for the first half of 2022, surpassing its annual target of ¥20B as well as total sales of 2021. The opposite is true for China’s Tiktok, Douyin. ![]() Recent headlines broke the news that Tiktok would stop its expansion into e-commerce in Europe and the US as the feature did not generate sufficient consumer interest. □ Douyin is stealing Alibaba’s crown as the home of livestreaming e-commerce. □ Market reality: Douyin should play a central part in beauty brands’ China strategy ❌ Myth: “People only buy cheap products on Douyin" More on debunking Chinese e-commerce myths! Today we’re talking about Douyin (Chinese TikTok) and challenging the misconception that the platform is not suitable for luxury beauty brands.
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