Douyin: Brand Transactions Gain Average Monthly Growth Rate of Over 24% in 2022
Recently, “Douyin E-commerce’s New Brands Growth Report for 2022” was officially released, which was jointly published by Douyin E-commerce, Mass Consumption Business Center of ByteDance’s Ocean Engine and Arithmetic Report. The report is aim at brands who are using the platform to grow their businesses faster with the app.
The report focuses on brands established after 2016 with three main features, specifically emerging digital channels, innovative marketing methods and meeting consumer needs. A total of 280 companies were included in the sample size. By analyzing these brands, the report demonstrates the value of Douyin’s e-commerce features to other brands and how they can be applied to a company’s unique situation.
According to the report, from March 2020 to November 2021, 23% of Douyin E-commerce’s consumers have purchased new brand products, and this proportion is still increasing.
From January to November in 2021, the monthly transaction volume of new brands using Douyin E-commerce has increased by over 24% month-on-month. The report suggests that the platform has become an integral part of new and emerging trends. Since the release of its best-selling list, the number of selected new brand products has increased over four times. Over 73% of the products tracked were discounted items and had been purchased more than once a month.
The 2021 saw a surge in the broadcast volume of short videos that were marketing the products created by newest brands on Douyin E-commerce. In the first three quarters of 2021 alone, the average quarter-on-quarter growth rate of short video broadcast volume created by the new brand enterprises exceeded 120%, while the rate of Q2 was as high as 174%.
The core business of many of the new brands still covers two major fields, particularly those of food and beverage and cosmetics. However, the supply and demand of clothing, shoes, bags, personal care, 3C digital home appliances, maternal and children’s books and smart home products are diversified, and more new brands are showing promise.
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In terms of gender and age preferences, the proportion of female consumers of the new brands sales far exceeded that of men while young consumers aged 18-30 accounted for the largest proportion. From the perspective of location distribution, new brand consumers mostly live in high-tier cities and first-tier and new first-tier cities with stronger purchasing power host about a third of the new brands’ consumers.
Douyin E-commerce plans to launch a special support plan, aiming to help 100 new brands sell over 100 million yuan on its platform in the coming year.