ByteDance’s eyes China’s $ 1.7 trillion e-commerce sector | Business and Economy News

Zhang Yiming made Bitdance Ltd. one of the most valuable non-profit organizations in the world through blockbuster applications such as TickTock that challenged Facebook and other initiatives on their own birds. His latest goal: Alibaba.

The 38-year-old AI coding talent, searching for the next big job at ByteDance, has made his mark in China’s $ 1.7 trillion e-commerce arena. The co-founder has hired thousands of employees and teamed up with major sponsors such as Xiaomi Corporation Emersario Lei Jun, which he calls his next “big breakthrough” to drive global business – staffing consumers with its addictive short videos and live streams. Selling. The effort will not only create Zhang’s magic touch with the app’s creation and ByteDance’s AI Wizardry, but will test investors’ receptions ahead of one of the world’s most technologically anticipated IPOs.

Its startup has already started making waves in an industry controlled by Jack Ma’s Alibaba Group Holdings Limited and Inc. It sold nearly 26 26 billion worth of make-up, clothing and other products in 2020, earning Alibaba’s repentance in its first year. It took six years to do. By 2022, it is shooting more than 1.5 billion dollars. Tic Tac Toe’s Chinese twin Dwayne is expected to contribute more than half of the ই 40 billion in e-commerce-driven domestic advertising sales this year.

“Short video platforms have so much traffic that they can do virtually any business,” said Sean Young, managing director of Blue Lotus Capital Advisors. “Dwayne is involved not only in advertising, but also in live streaming, e-commerce, local life services and search. There is a lot of room for imagination in this.

When the burgeoning e-commerce business goes public, the firm will help surpass its 250 250 billion valuation, which addresses concerns about Beijing’s crackdown on the country’s Internet beacons. Preparations are underway to create a list that is one of the most anticipated debuts in the world. The startup is working with presenters and is choosing a listing location between Hong Kong and the United States, people familiar with the matter said. ByteDance will not handle sales or merchandise itself, but it is optimistic that merchants will sell more ads, increase traffic, and take some of the business.

The internet giant is a late entry into the social trade scene of China, where influential people deliver products to fans like the gener-Z version of the home shopping network. The Alibaba-led format as a marketing tool in 2016 developed its own life last year when the Covid-19 aroused enthusiasm for sitting at home entertainment. Last year, Alibaba’s Taobao Live earned a total revenue of 400 billion yuan ($ 62 billion), and Quesheo Technology’s social platforms traded 381 billion yuan, more than double Dubein’s.

ByteDance is calculating its artificial intelligence-based, interest-based recommendations to help keep its e-commerce business afloat. At a splashing upcoming party for a one-year-old business last month, executives explained that the company wants to replicate its success by using AI algorithms to feed users content in online shopping. As they scroll through an endless stream of social content connected to physical content now more than ever before, Dwayne users won’t be able to resist their buying trend, they said.

It’s “somehow like street shopping,” Bob Kong, head of e-commerce at Dwyn’s 35-year-old, told hundreds of people at the Guangzhou event. “As people get richer, they don’t go to shopping malls or boutique stores with certain things in mind, they just buy when they see something they like.”

Kong, formerly Baidu Inc. The engineer, who was intercepted by ByteDance in 2017, is one of Zhang’s fastest growing young lieutenants in charge of breaking the company’s new foundation. He was previously the technical leader of ByteDance’s Hello app, one of India’s most widely used social platforms for sharing content such as video – until the South Asian nation shut down dozens of Chinese applications last June on national security grounds.

Since Kong took over as head of e-commerce, Duane has banned live-streamers from selling items listed on third-party sites and invited them to open their own app-stores, preventing competitors like Alibaba and Inc. from blocking Dou’s traffic. He has raised a team of customer support staff from just 100 to about 1,990 to fight counterfeiting and is hiring more than 900 to support the business. ByteDance has an online matchmaking system that helps businesses connect with influencers and their agencies, and it has a physical streaming of live streamers and merchandise in-house like Alibaba.

The move has garnered attention from celebrities like Leo, who has hosted livestreams to promote his MI TV and smartphones. Once Apple Inc. with the smartphone business. Who wanted to challenge The once high-flying entrepreneur Luo Yonghao, a top influencer, transferred প্রথম 1 million worth of merchandise to his first live stream on the platform.

Small merchants are following their lead, like Zhu Huang, who bypassed conventional platforms such as Alibaba’s Taobao and set up the Dion Storefront for his jewelry business in October. Instead of cracking down on platform operators for traffic, he has been able to garner a fan base of around 20,000 by creating videos that provide practical tips on how to choose the right size when buying bracelets online.

“It’s challenging for brand new merchants like me to attract customers to Taobao,” says Huang, whose Duane store collapsed just three months later. “Sometimes people come to our store for entertainment, not for shopping. But once we have enough visitors, we can sell. “

ByteDance is lending a hand. In Foshan, Huang and 200 other jewelry retailers are trained in everything from registering and marketing a store to quality videos. About 24 hours of technical support available: Huang says that whenever his livestream channel goes down, bytendance technicians come to the rescue immediately.

Huang, one of nearly 1 million creators who created e-commerce sales in Dwayne by January, was attracted to the platform’s more than 60,000 million daily users. The platform – which brings in commission fees as a new revenue stream from merchants – aims to join thousands of brands this year at’s choice to set up stores in Duine, and the number could increase fivefold by 2022, the company predicted in an internal memo. GMV could increase to 600 billion yuan a year before doubling in 2022.

ByteDance’s ambitions are not limited to Alibaba. The company has begun booking hotels and restaurants through Dewin, providing lifestyle services such as super-apps like Metuan and Tencent’s WeChat.

Duine’s e-commerce promotion in China could create a roadmap for TickTock, which has begun testing the waters of online shopping through a tie-up with Walmart Inc. and Canadian e-commerce company Shopify Inc., Zhang told global employees that while commerce, live-streaming And combined with short videos, gives even greater opportunities outside of China, to the citizens present who were told not to identify. The company has been quietly building a team of engineers in Singapore to grow TickTock’s innovative e-commerce activity.

The push for bytendance in online shopping comes when its other businesses head out. To boost video gaming, ByteDance has bought development studios, but it could take years for blockbuster hits like Tencent Holdings Ltd.’s King of Honors to take place, and China has previously cracked down on fitness and the industry in the beginning. In the online tutorials, the regulators wanted to rein in additional marketing, and the competition against several deep-pocketed startups, such as Alibaba-backed Zuibang, is fierce.

In April, Zhang’s firm was one of 34 corporations instructed by the Anti-Trust Watchdog to conduct internal investigations and correct excesses. Although its payment service has just moved off the ground, BiteDance and its colleagues imposed extensive restrictions on the fast-growing financial activities after a meeting with regulators, including the central bank, last month.

But the same investigation could help the owner of Tiktok enter China e-commerce, the world’s largest online marketplace. Over the past decade, Alibaba has held rivals and Pindudu Inc. to do business by forcing traders into a monopoly system. Regulators have since levied a record ৮ 2.8 billion in finesse on Jack Ma’s flagship firm and eliminated “one of two” as one of the main goals of its infidelity campaign, making room for newcomers like ByteDance.

For now, the biggest and most immediate stimulus from the expansion of ByteDance in e-commerce is advertising revenue, which still accounts for the bulk of its revenue. As the number of merchants on Diane grows, so does their marketing costs within the platform. Projects that can go beyond e-commerce gaming can become the biggest contributor to ad sales. Rival Queshou, traders contributed about 20%, the company said in March.

“It’s about being a larger partner of the brand’s advertising spending that would otherwise cost money on platforms like Alibaba,” said Michael Norris, a senior analyst at Conch-based market research firm China. “Alibaba’s threat came from here.

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