On July 29th, it was reported that Alibaba ($BABA) has recently renewed its strategic cooperation with Douyin for the upcoming year. Specifically, businesses that meet the relevant conditions can continue to display their Taobao links in the form of short videos and customers would be redirected to Taobao App to complete the transaction. This cooperation is obviously based on Douyin's high number of Daily Active Users (DAU). Douyin now has a DAU of more than 600 million and very high commercial value. Especially in the era of 5G, mobile phones are enough to support HD videos short videos. In this case, will be faster than verbal transmission and its commercial application will be more extensive. Douyin is clearly the leader of the short video industry that controls a lot of traffic that could potentially liquidate.
For short video platforms in their early or late stages, all share some entertainment properties, which is one of the basic attributes. Compared with short video platforms in the early stages, Douyin is a rising star.
In addition to inheriting the entertainment attribute of the short video platforms, it also focuses on the social and life attribute.
For example, the recent launch of "Shake it" (a rough translation, referred to hereafter) is reinforcing its social nature.“Shake it " is located in the location column at the top of Douyin's homepage besides its "map" function. And the recent launch of the "Xin Dong Wai Mai" is reinforcing its life attributes. Businesses can post short videos to sell themselves with the help of Douyin's public domain traffic. They can improve the visibility and popularity of stores in a short period of time, to attract more consumers. Both the "Shake it" in the internal test and the "Xin Dong Wai Mai" not long ago indicate that Douyin App is gradually expanding its business scope, and it may even become a way of life in the future.
In 2020, live streaming may have become one of the most profitable industries in China.
According to official data from Taobao, last year's Singles' Day, Austin Li (Li Jiaqi)'s and Viya (Wei Ya)'s turnover reached RMB 3.3 billion and RMB 3.5 billion respectively. Based on the percentage of their share, they earned RMB 600 million and RMB 800 million respectively during their live broadcasts.
Seeing the hot market in domestic live streaming, capitalists in overseas markets also want to have a try. Therefore, TikTok teamed up with Walmart for its first live stream overseas. Although total sales were not disclosed, the number of viewers was still large with the maximum number in the studio approaching 20,000 during the one-hour live.
According to Douyin's statistics in 2020, the net liquidation has been over 10 billion, and the number of users has increased to 490 million. At present, there are a huge number of users who trial this APP, which generates tremendous economic value. It is estimated that the market value of the Douyin is about RMB2.58 trillion ($398.6 billion) as a reference about the market value of Kuaishou (HKG:1024), about RMB1.3 trillion (RMB202.5 billion)
Douyin is developing well in the domestic market currently and has great potential in the future. Douyin‘s searching service will become more intelligent, and the results will be better. TikTok (Douyin's overseas version) has been popular in overseas markets, and the number of TikTok downloads is more than a 1.5billion in areas such as Japan, the United States, Thailand, Indonesia, India, Germany, France, and Russia.
However, with the development of society, the short video app is likely to be replaced, and Chinese players may have to meet the challenges from foreign giants, such as Facebook and Google. In addition, given the increasingly strict regulation, Douyin has much more work to do, but it is believed that it will get better.