Reform and Innovation in China's E-commerce Marketplace: Case Study of Douyin

Abstract

The e-commerce market in China has experienced significant growth in recent years, driven by technological advances in the Internet and the Covid-19 pandemic. Douyin, a leading social media platform, has conducted cross-market commerce and managed to gain significant market share in the e-commerce market with its innovative marketing approach and expansion into various product segments. This paper explores the reasons behind Douyin's success, focusing on effectively leveraging the advantages of its unique social e-commerce capabilities and developing two potential markets, second-hand luxury goods and agricultural products. By leveraging its user base and short video plus live streaming format, Douyin has effectively promoted its products and captured market share. In addition, the platform's exploration of promising market segments such as second-hand luxury goods and agricultural products has allowed it to carve out a niche in the e-commerce space. By facilitating direct communication between consumers and sellers, Douyin has revolutionized the buying and selling process, streamlining transactions and increasing transparency.