{"id":12413,"date":"2023-05-24T07:00:57","date_gmt":"2023-05-24T07:00:57","guid":{"rendered":"https:\/\/focus.cbbc.org\/?p=12413"},"modified":"2025-04-23T09:31:31","modified_gmt":"2025-04-23T09:31:31","slug":"e-commerce-in-china-tmall-douyin-or-both","status":"publish","type":"post","link":"https:\/\/focus.cbbc.org\/e-commerce-in-china-tmall-douyin-or-both\/","title":{"rendered":"E-commerce in China: Tmall, Douyin or both?"},"content":{"rendered":"

Platforms like Douyin and Kuaishou are occupying an increasing share of China\u2019s lucrative e-commerce market. So should you still be putting all of your eggs in Tmall\u2019s basket or should you be taking a more diversified approach?<\/h2>\n

China is the world\u2019s leading e-commerce market, generating 50% of all global transactions. Attempts to pin down the value of the country\u2019s e-commerce market vary, but they are always in the trillions, with estimates suggesting the market will be worth over US$3.5 trillion (\u00a32.8 trillion) by 2024.<\/p>\n

It\u2019s clear that Chinese consumers are very comfortable buying online, but how and where they buy is continuously in flux, presenting both challenges and opportunities for international brands. The rise of over 200 million Gen Z\u2019ers as a driving consumer force is setting new trends in communicating with target customers, the most salient of which is the decentralisation of the e-commerce landscape.<\/p>\n

For years, Alibaba\u2019s Tmall and rival JD.com have been the first port of call for both consumers and international brands. But the winds of change are increasingly blowing consumers towards social commerce platforms like Douyin, Xiaohongshu (RED) and Kuaishou, that bring together entertainment and shopping. And brands are having to follow suit.<\/p>\n

In this article, we review some of the latest developments in the social commerce field so that you can choose the right platforms for your brand.<\/p>\n

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Foreign brands can now sell directly through Douyin<\/h4>\n

In the past few years, the social commerce platform Douyin (China\u2019s version of TikTok) has been making waves as it establishes itself as a leader in e-commerce live streaming (also called live commerce) and short videos. Douyin was already a top player in this category, having reached a GMV from live streaming of $1.5 trillion in 2022 and launched Douyin Mall, a shopping interface like Tmall that can be accessed directly from the app. And Douyin\u2019s share of the pie is only going to get bigger as it has now started allowing all brands \u2013 including foreign brands \u2013 to apply to sell products on the platform directly through cross-border e-commerce.<\/p>\n

As Sandra Weiss from RedFern Digital notes, \u201cBrands can now sell directly on Douyin without setting up a domestic entity or establishing a business license within mainland China. This means that they can take advantage of Douyin\u2019s massive social influence and link products directly in short videos and live streams, decreasing the loss of traffic when driving customers to make purchases.\u201d<\/p>\n

Weiss adds that the ability to sell directly on Douyin emphasises the need to explore brand-run content, especially live streams, rather than relying solely on influencers. \u201cOver 50% of sales on Douyin among the top 500 brands on the platform came from brand-run live streams in February 2022, and in 2023, the market share of brand live streaming is estimated to exceed 50%.\u201d<\/p>\n