101 Guide to Douyin EC Global: China Cross-Border E-commerce Solution
A gold rush is underway in China—one where livestream rooms and product seeding substitute for pans and pickaxes as millions of consumers hunger for global brands and products.
The rise of content-based e-commerce
To navigate the recent gold rush, brands and cross-border sellers are integrating a mix of new and traditional e-commerce tactics as they seek to capture attention amid the recent shift toward content-based e-commerce.
As the new model for growth, content-based e-commerce integrates rich, engaging content such as livestreams, videos, and social media posts directly into the shopping experience to enhance engagement and influence purchasing decisions. In contrast, traditional e-commerce focuses primarily on transactional elements, featuring product listings, descriptions, and basic reviews, with less emphasis on creating an immersive or interactive shopping experience.
Moving forward, 68% of surveyed brands expect to boost marketing spending on content-based platforms according to research conducted by Topdigital & Nint. Conversely, only 21% plan to increase spending on traditional e-commerce platforms which rely heavily on organic and paid search traffic.
What is Douyin EC Global?
Navigating China in the era of content-based e-commerce requires more than a website and a slick checkout page; it demands a deep understanding of emerging platforms, trends, cultural needs, and the unique habits of local consumers.
Recognizing this need, Douyin EC Global offers brands and sellers a suite of e-commerce solutions to facilitate brands’ entry and expansion in China’s cross-border market.
From advanced marketing tools to robust e-commerce capabilities, and logistics support, Douyin EC Global offers end-to-end solutions tailored for cross-border sellers. This includes access to bonded storage facilities and streamlined direct mail services. By leveraging these resources, sellers can optimize inventory management and expedite the delivery process, ensuring that products reach consumers within 2 to 5 days on average.
3 Strategies for content-based e-commerce
Douyin EC Global not only provides essential infrastructure but also integrates with Douyin’s social features to create a content-driven e-commerce funnel. This enables brands to generate interest, drive conversions, and meet existing demand through a three-part strategy of:
-
product seeding,
-
brand livestreaming, and
-
product venue.
Product seeding: drive buzz & conversions
Harnessing the trust and influence of creators to cultivate consumer interest, product seeding provides a reliable content marketing strategy in the modern era of social e-commerce.
Brands typically implement this approach by offering complimentary or discounted products to influencers, celebrities, or content creators with substantial social media followings. By generating buzz, building credibility, and stimulating organic word-of-mouth marketing amongst the influencer’s audience, product seeding nurtures user interest while, ultimately, boosting conversion rates.
From a marketing standpoint, product seeding significantly enhances A3 to A4 conversion (Ask→Act), resulting in markedly higher conversion rates from both organic and paid traffic sources. In fact, product seeding can increase total ROI by an impressive 53%, with notable upticks in ad traffic across livestream and short video shopping channels, according to a recent study by Ocean Engine.
To learn more about this strategy, check out our in-depth guide on product seeding.
Supercharge sales with brand livestreams
More than ever, consumers want genuine, immediate connections with their favorite brands and livestreaming has emerged as a powerful tool to meet this demand. From product launches to expert discussions and behind-the-scenes peeks, livestreaming opens a direct dialogue between brands and their audience.
Brands in China are capitalizing on this trend. The first half of 2023 saw an impressive 80% year-over-year growth in Douyin brand livestream sales, prompting many to prioritize this channel over traditional marketing approaches.
This strategic pivot partly aims to reduce dependence on Key Opinion Leaders (KOLs) and external hosts for social commerce. Top-tier KOLs and hosts usually command hefty fees, sometimes exceeding 20-30% commission. Moreover, engaging these influencers involves a complex process of outreach, product sampling, selection, and scheduling.
Brand livestreaming, meanwhile, offers enhanced control, profitability, and scalability, allowing for hundreds of annual shows. This direct approach enables tighter brand oversight and potentially higher margins compared to KOL collaborations in their livestream rooms.
Want to learn more about this strategy? See our full guide on brand livestreaming.
Data source: H1 2023, Douyin E-commerce Data Report, Chanmama.com
Ensure long-term growth with a product venue strategy
To sustain sales momentum, the concept of a “product venue” is emerging as a game-changer for many successful brands in China.
A product venue provides a dedicated and consistent space for users to come back to after being “seeded” by influencer content, allowing them to purchase or explore products more freely. Having a fixed product venue also satisfies the needs of interested users who don’t want to wait for a livestream promotion in order to make a purchase.
For brands, having a product venue helps them cover two important business scenarios.
-
Catering to planned and repeated purchases
Having a product venue helps to stabilize daily sales and meet short-term consumption needs for planned or repeated purchases.
-
Complementing livestream shows
A product venue also helps to complement other content initiatives including livestream shows and short videos by enhancing conversions. Live shopping shows offer real-time product demos and short videos help to drive engagement, while the product venue provides a stable online presence for transactions.
Want to learn more about this strategy? Check out our full guide on product venue strategy.
