On August 27, retailer Walmart said it would “shake hands” with Microsoft to buy TikTok. This may be a confusing move, but this suggestion is more plausible looking at the direction of development that ByteDance has applied with a similar application in China.
That version is Douyin – works like TikTok but only in China, not only becoming a platform with lots of interesting content, but also an online shopping “place”, with a unique approach for young people. This is something Walmart really wants to have.
Currently, the media giant ByteDance is running both apps, starting to test e-commerce features on Douyin in 2018. Meanwhile, the company recently released a new feature. with the “Buy Now” button on TikTok to redirect users to shopping sites.
Douyin started promoting the shopping feature by allowing video content creators to post links to their stores on China’s largest online shopping site, Taobao. Then, they let users set up a referral store in the Douyin app. Now, the platform is actively driving content creators to sell through their own stores instead of outside sites.
For most Chinese consumers, Douyin is not a shopping site that can completely replace Taobao and other major platforms. Fibian Bern, CEO of marketing firm Many working with the creators on Douyin and TikTok, said the design of the app means that the best-selling products are those that are bought at low prices. .
He said: “You are browsing the content of the app very quickly, which means that very few people who use the app will buy things like an expensive watch. You think about the item and the paragraph. That video is going to disappear quickly. That’s why I find Walmart quite interesting. They can sell low-priced products directly to those customers TikTok. ”
However, the bargain price is not a factor to ensure customer satisfaction. Last year, an anonymous account shared that he bought half a kilo of dried shrimp on Douyin and felt cheated. The app shows succulent, plump, palm-stimulated shrimp that may have been prepared by a kind woman. However, when the goods were delivered here, the shrimp was extremely small and smelly. After that, the person tries to find a way to refund the reseller is not much information.
Accordingly, Bern said that ByteDance must also learn a lot of customer service experience in the retail sector. The e-commerce features on TikTok have not been as advanced as Douyin did, he said, partly because influential accounts in China are trying to do business, capitalizing on their popularity to sell merchandise. physical.
The fact that TikTok has more users worldwide also forces ByteDance to be more cautious when making changes to this app than Douyin. “We found that TikTok will be identical to Douyin,” Bern said. The app is just a little slower. There’s nothing unique about Douyin that TikTok doesn’t have.
Meanwhile, many analysts also stated that Walmart buying TikTok could help them have a more effective approach to young customers. Neil Saunders, managing director of GlobalData Retail, believes that young people are more likely to shop online than at Walmart stores. As a result, a platform like TikTok can make it easier for Walmart to attract younger people.
Owning TikTok will be useful for Walmart’s marketing strategies while allowing the exploitation of a rich database of young customers and product development.
In addition, TikTok will be an important “card” for Walmart’s marketing strategy, and at the same time allows retailers to exploit a wealth of data about customers to develop products. This could be the “golden hen” for Walmart, increasing its competitiveness with Amazon.
Consult the New York Times