Douyin's E-commerce Aspires for RMB 4 Trillion GMV by 2024, Aiming to Compete with Pinduoduo
In the rapidly evolving world of e-commerce, Douyin E-commerce has set its sights on a significant milestone for the year 2024. The Chinese short-video platform, known for its popular app Douyin, has announced a GMV target of RMB 4 trillion (USD 556 billion), marking a nearly 50% increase from its 2023 performance.
According to reports from LatePost, Douyin E-commerce's GMV in 2023 was around RMB 2.2 trillion (USD 306 billion), with a target of RMB 3 trillion (USD 415.5 billion) for 2024. However, Douyin E-commerce officials have denied the authenticity of these figures, stating that the actual final performance was RMB 2.7 trillion (USD 373.9 billion).
The company's focus for 2024 is on enhancing its low-price competitive capability. To achieve this, Douyin E-commerce is testing an automatic price adjustment feature on a small scale, allowing merchants to delegate price adjustments to the platform based on market conditions and the platform's suggested prices.
All products on Douyin E-commerce will be labeled with price tags such as "lowest price for the same model," "highest price for the same model," and "lowest price on the entire network." This transparency aims to provide users with the best possible prices and foster trust in the platform.
Meanwhile, Douyin E-commerce has launched the Douyin Mall app, an independent e-commerce shopping platform outside of the main Douyin app. Users can search for products, compare prices, place orders, view logistics, and access after-sales services on this new platform.
As Douyin E-commerce expands its e-commerce business, it faces stiff competition from established players such as Alibaba and Pinduoduo. In 2023, Alibaba's annual GMV was RMB 7.2 trillion (USD 1 trillion), while Pinduoduo's GMV was RMB 4.05 trillion (USD 560.9 billion). Pinduoduo's performance in the first quarter of 2024 exceeded market expectations for the fifth consecutive quarter, with revenue increasing by 131% to RMB 86.81 billion (USD 12 billion), net profit increasing by 246% year-on-year to RMB 28.00 billion (USD 3.8 billion), and transaction service income increasing by 327% to RMB 44.36 billion (USD 6.1 billion).
JD.com has also announced an internal goal of RMB 4 trillion for its e-commerce business in 2024, further intensifying the competition.
In terms of user base, Douyin's DAU can consistently hover around twice the level of Pinduoduo's. As of current, Douyin has about 800 million daily active users (DAU), while Pinduoduo's DAU peaked at 398 million during last year's Singles' Day under special shopping festival circumstances.
The launch of Douyin Mall is part of Douyin E-commerce's strategy to better serve users who show strong demand for proactive shopping. The company aims to grow in the shelf-based e-commerce market as the content space reaches its limits.
This article was written by Wang Yuchan for 36Kr. The GMV target for Douyin's e-commerce business in 2024 is set at RMB 4 trillion (USD 556 billion), indicating a significant challenge and an exciting prospect for the future of e-commerce in China.
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