Douyin’s live broadcast stories of Chinese companies that are selling Wine to the Chinese. Livestreaming of salesmen that are introducing Wine.
Douyin is the version of TikTok in China.
Need a cost effective TP (Tmall Partner) to sell in China?
We are an Official Tmall Partner e-commerce Agency. Our Services: E-Commerce, Search Engine Optimization, Advertising, Weibo, WeChat, WeChat Store & PR.
The Douyin was also down just as netizens were curious to know what live streaming liquor sales were.
Wine, Liquor & Spirit in China
Douyin formed a liquor self-operated E-commerce team on April 1. They will use the Douyin platform for live/short-video sales of liquor. Douyin is currently hiring e-commerce liquor procurement personnel and sales staff. The liquor products sold are mostly baijiu (Chinese Liquor).
Douyin’s traffic advantage and brand endorsement will profoundly alter the online sales patterns of Chinese liquor. Traditional strong third parties like JD.com or Tmall may also be affected. The fate of Douyin also makes it possible to normalize the chaos of live broadcasting, and sell alcohol.
- Douyin’s ability to tell the story of self-operated wine and water eCommerce is still up for debate.
- Live streaming wine is a gold mine
- It is becoming a “trend” to sell alcohol in live broadcast rooms.
According to data from Chinese media, the size of the new market for alcohol retail in 2020 was about 116.75 Billion Yuan. The market is expected to grow to 136.31 Billion Yuan by 2021, according to ai media.
We are an e-Commerce agency in China and can help you : Contact us
Live Streaming to Sell Wine to Chinese Consumers
Live streaming and selling alcohol have become an increasingly popular way for middle-aged male actors to “re-employment.” Zhang Jizhong, a 71 year-old director, sold tens and thousands of “Wuliangye”, for 19.9 yuan in his live broadcast debut. Zhang Chenguang (65-year-old Golden Bell film emperor) was in tears when he sold wine in the broadcast room. However, he chose to continue selling wine when he broadcast again live. Li Guoqing is now known as “Qingzi “.
How does live streaming in China for wines generate magic?
Live streaming wine selling tracks is active and linked to the category characteristics.
Alcohol, which is an impulsive product, belongs to everyday consumer goods. The audience is relatively large, and at the moment, the leading role is especially obvious for opinion leaders. It is easy to create a consumption trend. The gross profit margin for liquor is high. This allows it to support large-scale price promotions, group discounts, and higher live broadcast fees. It is why live streaming liquor or liquor has become so popular.
Commission to influencers and platforms
A person responsible for the live supply chain said that, “Compared to the 15%-20% general category commission, the commission for wine category is as high at 50%-60%. This is almost equivalent to commissions on many domestic beauty kits products.” “
Douyin a new distribution channel?
Douyin has been one of the most successful platforms in the live e-commerce market, thanks to its ability to sell wine and live streaming.
ByteDance’s Giant Arithmetic, shows that there are almost 1,500 wine-teaching creators with more than 10,000 followers on Douyin in 2020. This is 329% more than 2020.
There are many liquor sellers. In addition to the stars, there are also plenty of resellers & institutions and liquor e-commerce brand names.
A Chinese wine seller explain that he sold more than 10 million yuan within 90 minutes.
Alcohol is very common in the category’s goods. According to the data , about 10% of the total GMV was accounted for by alcohol in the second quarter 2021.
Partnership with Wine Sellers Jiuxian
Jiuxian Network, a well-known liquor ecommerce platform, is also one of the “big V” for wine sales in Douyin.
Jiuxian was founded in 2009, and it was listed on the New Third Board for 2015, but because of poor operating conditions Jiuxian was delisted from the New Third Board after two years. Jiuxian Network witnessed the rise in short video content and organized a team to upload videos to Douyin.
La feige started bringing goods to Douyin via live broadcast in 2020 after being affected by the epidemic. La feige’s cumulative sales have exceeded 600 million. In July 2021, La feige brought goods to Douyin via live broadcast. The average UV (sales/number visitors) value remained at 4 and has been the absolute anchor in Douyin. The official flagship store Luzhou Laojiao has recorded more than 130 live broadcasts in 2020. In December 2020, payment orders jumped by 400%, while the GMV has risen by 264%.
Douyin Wine Store, is that so easy?
Despite the high sales and profits made by Douyin Liveselling Wine, there are many other routines.
The official Douyin account for the State Administration for Market Regulation published a December 2020 video of Xiemengwei streaming live with goods. It was accompanied by the text “Hero Gazi Brother began playing the villain?” “
The video shows Xie Mengwei selling Moutai wine. He promises to buy two boxes of Moutai, and one box of Wuliangye. The State Administration for Market Regulation however pointed out that the liquors he sold were brand wines.
Nothing is easy in China
“Everything you see on the Internet is virtual. You can’t grasp it because you are young and inexperienced. The water is deep. Pan Changjiang gave some advice to Gazi in Lianmai when Gazi was caught up in a storm. Pan joined the army for live broadcasting and sold BRAND wines shortly after. He was now out of control.
Successful stories in China
Pan sold a “golden wine” in March 2021. It was an OEM wine made by Giant Group and commissioned by Wuliangye Group Health Wine Company. Pan Changjiang stated that the product was manufactured by Wuliangye. He also gave a “fan welfare pricing” of 299 Yuan (6 bottles). However, Pinduoduo and Taobao had 6 bottles of “golden wines” for 150 Yuan.
Another media reported in March 2022 that Mr Pan stated that he had spoken to the chairman of Moutai Company and that they had been friends for over ten years. “Last night, I drank him and asked him to sign an agreement to give me pricing rights.” Moutai replied that Pan was not cooperating. Pan Changjiang has since denied rumors that the “drunken theory”, was true. Although the news is not true, it does not change that the preferential market price for the live broadcast room was higher than the market price. source LATIMES
Han Zhao, the director, once played the role of Tiaozi in “Yang Guang’s Happily Lived”, while Yu Zhen, an actor well-known for his performance in “The Legend of The Hero of Lu Liang”, also flipped over the car during the live broadcast.
In November 2021, Han Zhao’s live sale of liquor was reported by the Beijing-Tianjin-Hebei Consumer Rights Protection Alliance for suspected price fraud and misleading; two months later, Yu Zhen was complained by netizens about “running a train with a full mouth”, and when introducing a wine, he claimed that the wine was originally a high-end liquor to be exported abroad, with crystal bottles, yew wood inlaid with 20 grams of gold saucers, and the peach shape was worth more than 100,000 yuan, but the final price was only 158 yuan.
OEM : Chinese Wine Brands
Some netizens described the process of selling wine live on broadcast as having “three axes”. They included classic character appearances, first name wines, miscellaneous cards and self-funded “one drops to the end”. Feitian Moutai, Wuliangye, and Wuliangye represent the most popular drainage models. However, the true protagonist is the OEM wine.
There are many types of OEM liquors in large liquor factories. In fact, there were hundreds of OEM liquor KINDS at Wuliangye’s peak. According to a researcher in the liquor sector, even though he sold 15.8 Yuan of brandy and 9.9 Yuan of dry red, he still had money to make. The cost of wine is also very low. Many wineries order 10,000 pieces.
Fake products in China
Many sellers are also frantically trying to lure people away from the law and sell fake wine. Chongqing police uncovered a large case of “fully automated production + live streaming diversion avec goods” in February. Initial estimates put the total involved at 100 million yuan. According to the people involved in the case they employed “net reds” who carried goods on an Internet short-video platform and produced and sold approximately 20,000 bottles high-imitation Moutai brand wines.
Most wine sold in live broadcast rooms is actually low-quality, high-priced, or edge-rubbing products. Infringement of consumer rights is common and is the focus of the next stage of regulation.” “
Douyin should be able directly to sell alcohol. This will allow it to effectively curb the chaos. “As China’s largest traffic platform, Douyin will be able to directly sell alcohol in the future. I believe it will play a key role in promoting standardization and combing online wine sales.”
Byte wants to get into the liquor business
ByteDance created Tiktok & Douyin and is not only a platform that helps others sell alcohol but also has its own layout in the alcohol field.
ByteDance’s war investing department provided angel financing to Jiang Xiaobai for a brand called “Follow Me Small Wine” in 2018. According to reports, Byte launched “Follow Me Wine” in an effort to create a fast-moving consumer liquor like “Jiang Xiaobai”.
Byte’s well-known light humor god review group, Pippi Shrimp, designated Sui I Xiaojiu as the official limited liquor immediately after it was launched. Platforms like Douyin or Today’s Headlines also made every effort to generate momentum for their own brothers.
Douyin VS Tmall.
Bai Guang, ByteDance’s director of strategic cooperation, and Liu Yuzhang took over Beijing Xingang Trading Co., Ltd. in 2018 to explore new consumer markets like tea and red wines.
According to trademark information, the company applied in 2019 for a liquor mark called “Inspiration Code”, which was approved in September 2020. The company also announced that it has successfully registered several liquor trademarks including Inspiration Bubbles, Light Portuguese, and Portuguese.
The wine of similar brands isn’t often reported in the media and isn’t currently available on major e-commerce platforms. There are reports that the “inspiration” code is available at the Byte Mall within byte.
ByteDance, in addition to investing in its own wine on numerous occasions, has also made investments in the track.
Beijing Quantum Leap Technology Co., Ltd., an affiliated of ByteDance, purchased a stake at Houxue Liquor Co., Ltd., which is a producer and distributor of liquor, fruit wine, wine, vinegar, cooking wines, and other products. It has already completed three rounds financing.
It is worth noting that Houxue Liquor’s March 2022 financing saw it assemble the three greats Ali, Byte and Tencent as shareholders. Houxue Liquor has seen its empty truck of soda liquor grow rapidly over the years, largely because it is betting on low-grade liquor.
The majority of the products for air cards are free from sugar, fat, and purines. According to the report, Tmall’s empty card sales volume has remained at the top of the category for four consecutive month. During the 618 period, Tmall sold an average of 9 cans per second of soda wine, which is 158 more than the New Year Festival.
Radar Finance pointed out that only 25,000 people are currently loyal to Taobao’s flagship Taobao air card store. The monthly sales of 1 product are 700+. Many of the questions in the FAQ area have answers that are biased towards the taste and smell of empty cards products.
ByteDance invested in Beijing Chaojiu Twilight Drink Trading Co. Ltd. in January 2022. Tianyan says that the registered capital of the company is 1 million Yuan. This indirect ownership is held by ByteDance Hong Kong Co., Ltd. Tech Planet reports that the byte is believed to be the liquor and liquid e-commerce platform that will be powered. It was attached to the Morning BrewIng Twilight Company umbrella.
According to Byte’s sources, Douyin, who sold liquor at the time, will build his own store and integrate short videos and live broadcasts to increase wine and water ecommerce growth. Douyin is likely to support this business. It is possible that the self-operated liquor e-commerce and water business could also be extended to the subdivision business, such as wine delivery in the same area and offline stores.
Industry insiders think that liquor ecommerce’s layout is conducive to the expansion of ByteDance’s basic business.
Radar Finance pointed out that Meituan and Taobao have expanded their reach to the liquor self-operated online business. In fact, Meituan launched the “Crooked horse delivery wine” mini program in 2021, which was matched with the offline direct stores. Douyin is determined to break through the track, even though it’s already too crowded. However, it needs to be able to win a “vicious struggle”
The report states that netizens tended to enjoy open classes at colleges and universities on Douyin in 2021. This was despite the fact that the average viewing time for these classes is 1.45 million hours.
Five of the top ten most popular open courses on Douyin are occupied by Peking University and Tsinghua University. Tsinghua University’s classic course “Economics in Life”, which attracted more than 1,000,000 viewers in one session, is the most popular open class.
Douyin was home to a lot of traditional cultural content in 2021. The platform hosted 99.4% (or 1557) of the national cultural heritage projects.
Many operas were among the top ten non-tangible cultural heritage projects in Douyin’s top ten. These included those from Henan and Shaanxi as well as those performed by artists performing Yue Huangmei, Peking, and Huagu Operas. Crosstalk, Production Of Liuzhou River Snail Rice noodles, and Northern Shaanxi Folk Songs were also popular.
Live streaming of traditional culture has been more popular in recent years. The online rewards from netizens have given these cultural offerings new life. According to the report, the income of traditional culture hosts increased by 101% annually. The income of Chinese folk artists hosts increased by 232% annually.
Read more emarketer
Advertising revenues forDouyin + TikTok will reach $31.66 billion this year to account for 5.3% of the global digital ads market.
- TikTok alone will triple its worldwide ad revenues this year to reach $11.64 billion, making up 1.9% of worldwide digital ad spend.
- ByteDance’s platform Douyin now has 600 million active users per day as of August 2020, up from 400 millions at start of year. This is partly due to COVID-19.
- half of ad revenues for TikTok and Douyin parent company Bytedance currently come from China, this share will shrink in the coming years as platform use saturates in China and grows in the rest of the world.
- The Use Time of 46% Users who Reminded of App Duration Declined Significantly
- No. 5 globally for share of digital ad spend, falling behind Google, Meta, Alibaba, and Amazon.
- revenues will maintain double-digit growth through 2024, as their share of global digital ad revenues expands to 6.7% for a total of $50.88 billion.
- Rural-themed videos received more than 2.4 billion likes in China
Rural areas in China love Douyin
According to the report, Beijing was the most visited city on Douyin in 2021 with 9.4 billion likes. Hangzhou’s West Lake Scenic Area was ranked first among the top ten most popular attractions on Douyin for 2021. The Universal Beijing Resort, which is a new attraction, was also a popular spot in 2021.
This report also highlights Douyin’s innovations in product functions. Douyin introduced several time management tools in the second half 2021. One of these tools reminded viewers to stop looking at their screens. This reminder was available on screen as well as through voice prompts.
Luxury brands have been flocking to the platform due to its growing popularity and potential for social commerce, but the results have not been great.
Douyin is a great way to reach China’s Gen Zers and millennials, but companies need to improve their social media strategies in order to connect with them.
Douyin is a global phenomenon, just like its global counterpart TikTok. The ByteDance-owned platform is only available on the Mainland. It now has 600 million active users per day, up from 400 millions at beginning of the year. This is thanks to COVID-19. Douyin’s core functions are similar to TikTok’s, with many of its content being the same as TikTok. You can find everything from cooking tips and dance challenges to informative videos.
Douyin e-Commerce Big plan
Douyin’s ecommerce capabilities are far better than its sister app. Douyin allows users to link directly to e-tail websites like Taobao or Suning. This allows them to support their content through sponsored challenges, livestreams and online shops. According to Kelly Zhang, CEO of ByteDance China, more than 22 million creators have made more $6.15 trillion through the platform in the last year. The company will invest $1.5 billion in traffic to double its income by 2021.
With the platform’s growing popularity and potential for social commerce, luxury brands have tried to get on board — but with mixed results. Many netizens felt that Gucci’s official channel was a fake account due to inconsistent visuals and questionable influencer selections. While Dior, Douyin’s first luxury brand, is struggling to maintain high engagement despite its successful 520 Confession Balloons campaign which earned more than 300 million views last.
Douyin is a great way for luxury brands to reach the largest consumer base, despite its limitations. What should they know about their app’s users? Here are five key takeaways from Douyin’s 2020 Data Report.