April 8, today, Douyin E-commerce’s first ecological conference was held in Guangzhou. In his keynote speech, Kang Zeyu, president of Douyin e-commerce, explained for the first time the concept of “interest e-commerce”, which is an e-commerce based on people’s yearning for a better life, satisfying users’ potential shopping interests and improving consumers’ quality of life. He said that Douyin has a good content ecology, many high-quality creators, diversified users and mature interest recommendation technology, which will give it a great opportunity to become an interest e-commerce business.
In the coming year, Douyin will launch three major support plans to help 1,000 merchants achieve annual sales of more than 100 million yuan, 10,000 high-quality talent sales of more than 10 million yuan, and 100 high-quality products sales of more than 100 million yuan.
Kang Zeyu said that despite the rapid development, GMV is not the first indicator of Douyin e-commerce at the present stage. It is the priority to improve the platform’s basic service capability to merchants, and to provide users with high-quality purchase guarantee and customer service experience.
Power interest electricity, launched three major support plans
According to a survey conducted by Douyin, many users don’t have a clear plan before buying. They shop on Douyin, just like shopping, because they are excited by the products. It defines this model as “interest e-commerce”. Kang Zeyu said that this part of demand has not been well met by the current market, which is the direction of Douyin e-commerce.
Kang Zeyu believes that in the interest of electricity shopping scene, consumer demand is not clear. What Douyin needs to do is to find out the potential needs of users and recommend the products to those who are interested. Based on this, Douyin has three advantages in its interest in e-commerce. First, the popularity of short videos and live broadcasts has made the display of goods more vivid and intuitive, which has significantly lowered the decision-making threshold for consumers. Secondly, as recommendation technology becomes more and more mature, personalized recommendation based on content interest becomes the market standard. Thirdly, a large number of excellent creators of short videos and live broadcasts emerge on the platform, which enables more high-quality products to be displayed in better content forms, and businesses to have more opportunities to reach their fans through creators.
He said that interest e-commerce is of great value to the entire e-commerce ecosystem, and there will be more and more practitioners turning to interest e-commerce. For consumers, interest e-commerce can meet their potential shopping needs, help them discover new goods and services, and then improve the quality of life. For businesses, they can find their consumers more accurately, and more stimulated consumer demand will bring greater market and opportunities.
According to the research data of merchants, a large number of merchants have gained a brand new growth and won the passenger plane after entering Douyin e-commerce. Among the consumers of the platform, more than 85% are new customers. Domestic brand Taiping Bird Clothing has seen an average monthly GMV growth rate of 78% since it entered Douyin in 2020. During the Chinese New Year shopping festival, Taipingbird women’s wear broke the record of self-broadcast of a clothing brand, with a single live transaction of 28 million yuan.
Lu Peng, director of the Department of Economics and Sociology of Science and Technology at the Chinese Academy of Social Sciences, believes that Douyin’s e-commerce business is a natural extension of Douyin’s ecology. The biggest advantage of Douyin e-commerce is that it has awakened some silent consumption power in the “background” through excellent visual content creation in the “front stage” and accurate data technology in the “middle stage”. This, in turn, is of great significance for providing products that are more in line with consumer needs and accelerating the development of the industry chain, bringing new space to the consumer side that is worth looking forward to.
At the meeting, Douyin e-commerce launched three major support plans. In the coming year, it will help 1,000 businesses to achieve annual sales of over 100 million yuan, among which 100 cutting-edge brands will achieve annual sales of over 100 million yuan. Helped 100,000 high-quality talent to achieve annual sales of 100,000 yuan, among which 10,000 talent annual sales exceeded 10 million yuan; Helped the annual sales of 100 high-quality commodities exceed 100 million yuan. In addition, the platform will also from the special support, service provider system and multi-dimensional training and other aspects to provide support for merchants and people.
Prioritize platform governance and pursue high quality GMV
Kang Zeyu, president of Douyin e-commerce, told thousands of merchants on hand that quality GMV is the core indicator. At present, it is the top priority of Douyin e-commerce to improve the basic service capability of the platform to merchants and provide users with high-quality purchase guarantee and customer service experience.
Kang said the first thing he did after taking charge of Douyin was to make platform governance a top priority. Douyin e-commerce selects a large number of products, technologies and operational backbone to join the management team, comprehensively strengthens the management and control of merchants and commodities, and would rather sacrifice GMV to do a good job in platform governance, so as to create a benign business environment.
According to the 2020 Annual Report on the Protection of Consumers’ Rights and Interests of Douyin e-commerce provider, Douyin has invested a lot of resources in platform governance. The platform initially invested 160 million yuan to establish a consumer rights and interests protection fund, and set up another 30 million yuan of special funds to carry out multi-dimensional sampling inspection of commodities; Identified more than 40,000 store violations and violations through technical means, successfully intercepted more than 300,000 pieces of illegal goods before putting them on shelves, and removed more than one million pieces of illegal goods in total.
In addition, Douyin makes use of the advantages of interest e-commerce to practice its social value and continue to contribute to rural revitalization and the inheritance and protection of traditional crafts. Last year, a total of 110 mayors and county heads promoted local agricultural and specialty products to the national market through Douyin’s “County Heads Live” activity. As of July last year, the total sales of the event totaled 123 million yuan, of which 68.19 million yuan came from state-level poverty-stricken counties. Oiled paper umbrellas, pottery, armor and other traditional and niche handicrafts have also expanded their sales through Douyin e-commerce and found their own consumer groups.
Kang Zeyu said he is very optimistic about the prospect of interest e-commerce, but at the same time to the performance of patient, not to rush. Douyin e-commerce will provide a good business environment for the majority of merchants, guarantee the shopping experience of every consumer, and prevent bad money from driving out good money. “Only a high GMV is not a Douyin e-commerce company. It is a Douyin e-commerce company that can provide good goods at good prices.” “Kang said.