Be sensitive to Douyin and other platforms’ users when integrating commerce into comms

One of the big trends of selling online in China has been the diversification of platforms and methods. Yet despite the hype around alternative channels, traditional ecommerce platforms still account for the largest share of sales, by far.

One of the most talked-about methods, livestreaming, accounts for just 14% of total online sales in China. That’s still a substantial $317 billion worth of sales last year, but most Chinese shoppers aren’t sitting through broadcasts and making impulsive purchases for the majority of their shopping.

Similarly Douyin, which has been one of the fastest growing sales platforms, and one of the most-hyped, still sells well under $1 worth of goods for every $5 that sell on Alibaba platforms. Douyin’s much-lauded competitor, Kuaishou, sells a lot less, although it is reportedly following Douyin in developing its own fully-serviced ecommerce supply chain.

As neither Douyin or Kuaishou have been built as a sales channel from the ground up, brands should be sensitive about how they use them to peddle their wares.

Analysis of behaviour on Douyin has found that if there was more than 10% of traffic dedicated to ecommerce content in a video feed, it reduces user retention and time spent on the platform. Douyin has recognised this, quietly lowering the ratio of ecommerce livestreams to other livestreams, from 30% to 20%. Douyin aims to soon have 25% of platforms sales coming from its made-for-purpose Mall.

The data illustrates that we shouldn’t define our channel strategy around a single criteria such as sales. We also shouldn’t assume that each channel represents a single point in the customer journey. Understanding at which points each platform fits into the sales cycle, allows brands to optimise their communications and function based on this.

Douyin, Kuaishou and other short video and livestreaming platforms often play an important role early in the customer journey. They can build awareness and preference, in addition to encouraging trial and driving sales. Consumers respond to different drivers at each of these stages on each of the platforms, and brands should be cognisant of these when planning their channel strategies. Similarly, consumers use traditional ecommerce platforms as an important research and loyalty channel, in addition to buying goods.

On the discussion on channel strategies, a good note to end is recognising the video platform Bilibili. Although it doesn’t get the airtime of some other platforms, it continues to be an increasingly resonant touch point for many Chinese consumers. 332.6 million users were active on the platform every month last quarter, up 25% from a year earlier. Almost a third of them were active daily.

To understand your target market’s customer journey in order to optimise platform strategies, take a look at the Brand Health Tracker or contact us to learn about our research and strategy services for China.