Douyin, the Chinese version of TikTok, has become an emerging e-commerce platform in China with huge potential for overseas brands. Compared to Tmall Global, Douyin offers some significant advantages for international companies looking to sell into the Chinese market. Here are three reasons why Douyin is a better e-commerce channel for foreign brands than Tmall Global:
Douyin has higher engagement and visibility
Douyin has over 600 million daily active users who spend up to 60-100 minutes per day on the platform. Short-form video content results in high viewer engagement and traffic. For brands, this means greater visibility and more opportunities for conversion. Tmall Global, on the other hand, is just an e-commerce website – brands only get visibility when shoppers proactively search for their products.
Lower costs
Douyin charges little to no fees for brands to open an official account and post short-form videos. The platform also provides data insights and marketing tools to help brands optimize their content for free. Tmall Global, however, charges initial security deposits and high commission fees of up to 60-70% per sale. Douyin’s lower costs allow brands to test the Chinese market with a smaller upfront investment.
Younger demographics
Over 60% of Douyin’s users are between 18 to 35 years old, compared to just 30% on Tmall Global. Millennials and Gen Z consumers tend to be early adopters of new trends and brands. They also have significant spending power as either young professionals or with the support of their parents. Tmall Global caters to a wider range of age groups, but its user base skews slightly older.
Of course, both of them have some key differences in their models. Tmall Global is a trusted third-party platform strictly regulated as an e-commerce channel. Douyin only facilitates connections between brands and consumers – all transactions and payments take place off-platform. However, with a fast-growing and engaged young user base, minimal fees, and huge visibility potential, Douyin is an opportunity overseas brands cannot afford to ignore.
Douyin offers significant advantages for international brands looking to access consumers in China. Its huge popularity and low barriers to entry provide greater visibility and lower costs compared to traditional e-commerce platforms like Tmall Global. For brands targeting younger audiences, in particular, Douyin should be a key part of their China market entry and growth strategies going forward. Overall, Douyin has the potential to disrupt not only how Chinese consumers shop but also how overseas brands sell into China. If you want to know how to make use of Douyin to expand your business in China. Please feel free to contact our professional team!