Douyin’s Life Services Transaction Value Surpasses 100 Billion RMB in First Half of 2023
On August 7, sources reported that Douyin’s Life Services achieved a transaction volume (GMV) exceeding 100 billion RMB in the first half of the year. This impressive figure was largely attributed to its in-store services, including dining and general store services, and its hotel and travel business. However, it still remains less than half of Meituan’s transaction volume in similar businesses. Douyin has set an ambitious target, aiming for a GMV of 2900 billion RMB for its in-store and hotel-travel services in 2023.
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Challenge for Douyin to compete with Meituan and ele.me
This year has presented its challenges for Douyin’s Life Services. While they did not meet their internal projections in Q1, a surge was noticed in April, significantly boosted by the upcoming “May Day” golden week. However, transaction volumes dipped again in May. This year, Meituan has been proactive in its sales strategies, leveling its dining group purchase prices with Douyin through subsidies and merchant operations, even offering better deals in some cases
2022 : ByteDance’s Douyin has surpassed its annual goal for its local lifestyle services earlier than anticipated, hitting a GMV of RMB 50 billion ($6.98 billion) in October, as stated by 36Kr based on sources.
Significance: Douyin, a leading short video platform boasting over 600 million daily users, has integrated features such as food ordering, ticket purchasing, and travel bookings. This expansion pits Douyin against established local service giants like Meituan and Ele.me.
In-depth: Douyin’s local lifestyle division offers a diverse array of services, ranging from food recommendations to sightseeing ticket purchases, hotel reservations, family events, and sports and fitness activities. All of these transactions can conveniently be made within the video app.
The power of Lifesteaming
A service provider for local life services on Douyin highlighted that predominant users of livestreaming tend to be prominent or influential brands. “Conducting a single livestream demands a minimum of a presenter and a helper, not to mention costs for photography, equipment, promotion, and more. Such requirements create a barrier to entry, deterring some small to medium enterprises. Additionally, these teams need a comprehensive grasp of product knowledge, distribution logistics, business strategies, and possess the capability to enhance sales.”