TikTok ‘blazes the trail’ for livestreaming e-commerce

2022-05-10 0 By

“With one eye closed and one eye open, Dmonstudio, the independent cross-border e-commerce women’s clothing website launched by Byte, is gone.”However, this may not have much impact on the overall layout of byte overseas e-commerce.Dmonstudio, a women’s clothing website owned by bytedance, recently announced that it would shut down its website from feb 11, sparking heated discussion on social media.Dmonstudio was once seen as the product of Shein, which showed the ambitions of byte layout cross-border e-commerce.However, Byte’s ambitions for cross-border e-commerce go far beyond that.Overseas, Byte has been using TikTok as a front to gradually expand its e-commerce presence in recent years.Since 2021, TikTok has entered a high growth phase, sweeping over 150 countries and regions around the world.Last September, TikTok officially announced that it had crossed 1 billion monthly active users worldwide, making it the seventh member of the billion-user club.The stable and rapid growth of users has accumulated a large number of consumer groups of native e-commerce interests for TikTok e-commerce, and also pushed the “fast forward button” for the subsequent development of TikTok e-commerce.How is TikTok e-commerce developing?What are your competitors overseas?What should Chinese sellers of TikTok livestreaming be aware of?At the end of 2020, as one of the overseas revenue growth channels, cross-border e-commerce was identified as an important new business direction by Byte.According To late LatePost, Zhang yiming said in his internal goals that 2021 will focus on further exploration in three new business directions: cross-border e-commerce, To B (enterprise services) and LKP (office hardware suite).Reviewing byte’s cross-border e-commerce, we mainly implement a two-step strategy.One is independent projects, known as MonStudio and Fanno.The two separate projects were launched last November.As mentioned at the beginning of the article, Dmonstudio is positioned as a women’s fashion shopping website, and we can see the shadow of imitating SHEIN in terms of webpage function modules, design styles and product categories.After just over three months of operation, Dmonstudio was suddenly shut down.Fanno, on the other hand, is broader and focuses on cost-effective products of comprehensive categories, quite like “Overseas edition Pin-Duo Duo”. Currently, it mainly targets at the European market.The second is to build an e-commerce ecosystem around TikTok.This plays a crucial role in the process of byte commercialization overseas.For Byte, Tiktok, with more than 600 million daily revenue, is nearing its growth ceiling, and domestic advertising revenue growth is slowing.TikTok already has huge traffic, making accelerating TikTok’s e-commerce business a key part of its monetization.In the second half of 2020, TikTok partnered with independent sites such as third-party e-commerce platform Shopify, where merchants run news stream ads on TikTok to drive traffic to the site and users’ transactions and purchases are mostly made on third-party platforms.In September 2021, TikTok officially launched TikTok Shopping, which mainly includes TikTok Shop and TikTok Storefront.In fact, TikTok Shop was launched in the UK and Indonesia in early 2021, allowing merchants to directly access the TikTok Shop and link to third-party e-commerce platforms via yellow bikes, while TikTok Shop manages everything from sales to logistics.TikTok Storefront is primarily for the U.S. market.In terms of cooperation, TikTok Storefront is only responsible for product synchronization and front-end drainage, while the back-end links of e-commerce such as payment collection, logistics and delivery are all handled by third-party independent website partners such as Shopify.Like TikTok, livestreaming with goods is also the core gameplay of TikTok.Compared with the development of domestic live with goods in full swing, this play in the overseas market is still in its infancy.Take the United States as an example. As the world’s largest consumer market, the total sales of live streaming e-commerce in the United States in 2020 was 6 billion DOLLARS (about 38.1 billion YUAN), while the market size of China’s live streaming e-commerce in the same period was more than 1.2 trillion yuan.TikTok has also experimented with live streaming in the US.In December 2020, TikTok cooperated with Walmart to invite 10 talented people to live sell products of walmart, and the peak number of people in the whole live broadcast exceeded 20,000.Three months later, the two sides carried out the second cooperation.But while TikTok has tested the waters a few times in the US, it hasn’t fully launched in the US so far, and has been cautious.At present, the mainstream way to bring goods is still to link external goods with short videos, which guides the flow of third-party platform merchants.The reason for this is not only the low conversion rate, but also the younger TikTok users in the US and the local regulatory policies.For now, TikTok isn’t willing to touch the base of amazon, Wal-Mart and other local retail giants.In contrast to America’s meticulousness, TikTok’s growth in Southeast Asia has been meteoric.According to a survey report by Google and Bain & Company, the penetration rate of Internet population in six major southeast Asian countries (Singapore, Malaysia, Indonesia, the Philippines, Vietnam and Thailand) exceeds 75%, the number of users reaches 450 million, and the penetration rate of smart phones is as high as 100%.With the popularity of mobile Internet, people have become accustomed to placing orders on mobile phones.As of February 2019, mobile accounted for 72% of all e-commerce traffic in Southeast Asia, according to a study.In addition, the cultural background and geographical location of Southeast Asian countries are relatively close to China, and TikTok is more comfortable in promoting live streaming goods in this region.In addition, around the e-commerce business, Byte is also stepping up the layout of supply chain and cross-border logistics system.In August 2021, Byte established two logistics technology subsidiaries, namely Shanghai DaoQuyuedong Logistics Technology Co., LTD and Haixingxingong Yuedong Supply Chain Management Co., LTD., whose business covers goods storage services under customs supervision and supply chain management services.Prior to this, Byte also invested in Syrius Torch Star, Jia Zhi Technology, future robot, Vertical Group, iMle, a number of logistics technology companies, covering warehousing, supply chain, cross-border logistics, logistics technology, electronic sheet and other industries.In 2021, Byte also invested heavily in Paterson, Starlingco, a large seller of cross-border e-commerce.More than a year later, byte’s new cross-border e-commerce system has been initially established, and TikTok e-commerce is the highlight of it.As TikTok gradually expands its e-commerce footprint, it has also encountered challenges from foreign Internet giants.In the field of livestreaming e-commerce, Amazon, Meta, Google and other Internet giants have entered the market one after another.Inspired by China’s livestream e-commerce, Amazon officially launched its livestream shopping service Amazon Live in February 2019 after two years of testing the scope of livestream products.However, until now, the development of Amazon live delivery is still very slow.At present, the average daily live population of Taobao livestream is less than 1,000, while the daily live population of Taobao Livestream in China has reached 10 million in 2019.While many Chinese sellers on Amazon were banned in 2021, the number of new Chinese sellers on the platform continued to grow by double digits, with the number of Chinese sellers with sales of more than $1 million increasing by more than 50% year on year.If these Chinese sellers, who are well versed in live streaming, collectively join Amazon’s live streaming platform, it may be a strong boost to Amazon’s future live streaming e-commerce business.In addition to Amazon, aliExpress, Shopee, Lazada and other e-commerce platforms have arranged livestreaming with goods, all of which provide livestreaming entrance and traffic recommendation mechanism for sellers.In addition to the platforms dedicated to cross-border e-commerce business, foreign social giants have also entered the game, taking e-commerce business as a magic weapon to monetize their traffic.We are familiar with Facebook, Youtube, Instagram, Twitter and other social platforms, have opened the live broadcast with goods function.Business broadcast and master anchor, almost has become a common platform play.From the current development, the development of livestreaming and goods on these social platforms is only relatively preliminary.However, given its huge capital and company power, it may compete with TikTok livestreaming e-commerce.With TikTok e-commerce spreading around the world, many domestic and foreign merchants, celebrities and even MCN have accelerated their entry into TikTok e-commerce, trying to replicate the success of TikTok e-commerce in more overseas regions.In terms of the delivery form, TikTok’s livestreamed delivery is not much different from that in China.Of course, Spoken English skills are a must for Chinese vendors to anchor TikTok.On Douyin in China, people and businesses are engaged in live streaming of goods from all walks of life, including film and television stars, Internet celebrities, brand merchants, county heads and secretaries, and even virtual people.In contrast, TikTok’s live streamers are mainly merchants, Internet celebrities and celebrities, rather than like domestic Douyin live streamers.Yan Guanghua, a girl from Guangzhou, is a TikTok live broadcast with cargo owners.Her livestream segment went viral on Chinese social media after she sold her goods in English on TikTok. Netizens praised her as a “working girl who speaks English to beat white-collar workers.”Before TikTok, Yan worked as an Oral English teacher in the education and training industry.Later, due to the influence of the policy, she resigned and joined an e-commerce organization. With her fluent English, she became an e-commerce anchor of TikTok.Yan also gained 41,000 followers on Douyin with his TikTok live video clips.For Chinese sellers, in addition to the most basic oral English skills, they should also abandon The Chinese way of thinking in the selection and publicity of live broadcast, and do preliminary research to understand the local customs and culture and language environment.In order to encourage more merchants to participate in TikTok live streaming, TikTok officially launched a series of activity policies, including launching a ranking contest, providing price subsidies, free commission and shipping, etc.But TikTok’s daily GMV isn’t that high, and a live stream can make anywhere from a few hundred to a thousand dollars.The biggest reason is that foreign users have not been fully educated in the market and are not familiar with live shopping. They lack consumption habits and mentality.In addition, TikTok currently has problems such as rough user labels and inaccurate streaming, making ROI uncertain.As a result, many merchants are still on the fence about TikTok.But have to admit that overseas live with goods is still a blue sea.The live streaming market in the United States is forecast to reach $11 billion in 2021 and grow to about $25 billion by 2023, according to Research firm Coresight Research.Thus, the overseas live tape market has huge income potential.If in 2021, all platforms are testing the waters of overseas live broadcasting, then 2022 May be the first year of the prosperity of overseas live broadcasting.