Douyin and Kuaishou Increase Investment in E-Commerce Logistics

Douyin and Kuaishou, two leading Chinese short video platforms, are increasing their investment in e-commerce infrastructure. Among them, ByteDance’s Douyin E-Commerce recently tested the “Jisuda” (which means speedy delivery in Chinese) service. This aims to realize the arrival of intra-city deliveries in one day and of peripheral-city delivery in two days. Kuaishou also set up a delivery and supply chain management company in Chengdu, according to reporting by Tech Planet on Thursday.

An industry source told Tech Planet that there are many logistics companies supported by these two short video platforms, but their services are far inferior to JD.com and Alibaba, and the delivery problems have been encountered by users for a long time. While the e-commerce business of JD.com and Alibaba is getting stronger and stronger, logistics has played an important role. After seeing the advantages of the combination of e-commerce and logistics, Kuaishou and Douyin are now looking to build the logistics infrastructure necessary to support their growing e-commerce business.

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The official layout of logistics for Douyin started from 2020. A person close to Douyin said that after it vigorously developed its e-commerce business, executives had discussed the establishment of logistics system. Every day, around 600 million users use Douyin, which offers huge opportunities. Recently, it has tested an important distribution service called “Jisuda.”

On the other hand, TikTok, the overseas version of Douyin owned by ByteDance, is expanding logistics-related services to international e-commerce business in Asia-Pacific, Europe and North America. Personnel in relevant positions need to master the import and export declaration process of electronics and other commodities to ensure the smooth delivery of goods. Asia-Pacific, Europe and America, as important areas of developing e-commerce, are no less key than the Chinese market to TikTok. Its move is to improve the performance delivery experience of international users.

Kuaishou is also pursuing the layout of its logistics system. On the eve of Kuaishou’s public listing in January 2021, Zhang Yipeng, the head of Kuaishou E-commerce Marketing Center, confirmed in an interview with 21st Century Business Herald: “Kuaishou has no self-built e-commerce supply chain plan in the short term. However, this does not mean we will not build logistics capacity. In June, we made a new move in logistics, that is, established a delivery and supply chain management company in Chengdu.”