With more than 400 million of the daily active users, TikTok is planning to enter the eCommerce business.
There are old e-commerce platforms like Suning, Jingdong and Ali before, and the competition between them lasted a long time. When the e-commerce market is almost divided up, why does ByteDance want to enter it? In fact, this is a normal business behavior, when holding a large number of B-end and C-end resources, any enterprise wants to be able to cashability. Moreover, today's headlines under ByteDance have a large number of users and map resources, and it is expected that it will enter the e-commerce business. Can TikTok backed by ByteDance become the third pole of the current live broadcast business after Taobao's live broadcast and Kuaishou?
Relying on ByteDance to mobilise the flow of the flare platform and the KOL of head, the 3 hours 47 million people watched the turnover of 110 million yuan, which caused great repercussions in the industry, and also allowed the TikTok to really recognize the feasibility of live broadcast. Dong Mingzhu, chairman of GREE electric appliances, also endorsed the live broadcast of the live sound, which deepened the recognition of the live beating of the TikTok in the industry.
At present, ByteDance has less advantages in B-end users than Alibaba and JD, but according to its influence, it is not too difficult to integrate b-end resources. Meanwhile, TikTok, Huoshan and other content platforms are the advantages that Ali and Jingdong do not have. The e-commerce platform is over-loading short video and live webcam, which is obviously the advantage of ByteDance. At the time of the explosion of short video live e-commerce, with the help of short video live traffic, the information flow is transformed into commodity flow, and ByteDance has become a marketing position and flow depression that cannot be ignored by all parties.
ByteDance has 1.9 billion download users. If ByteDance really enters the e-commerce industry, there is no doubt that it will be a new giant in the future.
Advertising is not the only to revenue
However, there are many domestic e-commerce platforms coveting, ByteDance wants to highlight the encirclement, it is not easy to take e-commerce as the second curve to support a hundred billion revenue.
For TikTok, as ByteDance's revenue heavyweight, it has reached the ceiling in advertising revenue, the next goal is to seek new revenue growth points. And the live broadcast of the TikTok has become the main entry point of the ByteDance.
According to statistics, the total scale of China's e-commerce live broadcasting industry will reach 433.8 billion yuan in 2019, which is expected to double in 2020, and the total scale of domestic live broadcasting e-commerce is expected to reach trillion level.
Beibeitu, a KOL of TikTok, had brought more than 1 million 160 thousand items of merchandise to the market during the 618 period last year, with a turnover of over 12 million yuan. But at that time, TikTok didn't pay much attention to the development of live broadcasting, which led to the loss of opportunities. Many head anchor went to other platforms.
In 2019, TikTok sold 180 billion yuan in total business, and the total turnover of the Kuaishou was 400-500 billion yuan, while the annual GMV of the TikTok was only 10 billion yuan. But on the other hand, compared with Taobao and Kuaishou, TikTok e-commerce is still in the state of being developed, which represents the possibility of its high-speed growth. According to professionals, the total turnover of TikTok live broadcast will be five to six times or ten to twelve times compared to last year.
Conclusion
A situation of tripartite confrontation between TikTok, Taobao and Kuaishou, and short live video broadcast is gradually taking shape. The three parties rely on an Internet giant, this competition may be a wonderful one. In the fierce competition, the ByteDance is the future of the e-business, which may affect the direction of the TikTok development.
*Content source: Marketing Newspaper WeChat ID iyingxiaobao
