E-commerce giant JD.com is set to upgrade its alliance with short video social-commerce platform, Douyin, the Chinese version of TikTok, according to sources quoted in a report from Chinese technology and business media outlet, 36Kr.
JD.com will open a flagship store on Douyin through which consumers can access JD.com’s entire product assortment without leaving the short-video platform, while JD.com retains control of distribution, logistics and after-sales service.
Analysts say the partnership could be beneficial for both sides. Douyin is said to have ambitious e-commerce goals, with leaked targets showing it aims to make 500 billion yuan ($77.71 billion) in e-commerce sales this year, but in order to grow its new e-commerce arm, Douyin desperately needs to build trust with consumers – a currency JD.com already has. Meanwhile, as China’s social media users spend more time on video platforms, Douyin can give JD.com a leg-up when it comes to its hundreds of millions strong community of highly-engaged eyeballs.
L’Oréal Group recently became the first major international brand to open a Douyin flagship, which it said raked in more than 22 million yuan ($3.42 million) in gross merchandising volume (GMV) between April 30 and May 6.
Before Douyin launched its own e-commerce operation, it was affiliated with Alibaba and allowed sales to be conducted via links in Douyin videos to stores on Taobao and Tmall, this new partnership with JD.com pits Douyin even more strongly against its former partner.