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The company has slowly been testing live shopping in the US with a select group of brands since late last year, hoping to replicate the success of its Chinese counterpart Douyin. Ad dollars continue to shift to the platform. TikTok executives, who spoke across two separate panels, said 15% of all product discovery now takes place on TikTok, as #TikTokMadeMeBuyIt reaches 46 billion views and counting.

The company may look to draw on the success of Douyin in China, which saw a boost not only in ecommerce sales, but also service sales such as food delivery and travel bookings, as a result of shoppable livestreams.

This year, over a fifth (21.7%) of the world’s population will be users of TikTok or its Chinese counterpart, Douyin. However, a potential ban could hurt future US growth. Use this chart:. Effectively distribute budgets for social media ad campaigns. Evaluate ad strategy in the event of a US TikTok ban. More like this:. Global Social Media Update 2023 (Insider Intelligence subscription required).

Whether TikTok Shop can replicate the success of its Chinese counterpart, Douyin, remains to be seen.

And Douyin, ByteDance’s domestic champion, is finally coming down organically from its explosive growth phase. TikTok also drastically underperformed expectations in 2022, although its growth was huge nonetheless. Industry media understandably latched on to TikTok’s multibillion-dollar underdelivery in 2022, as that shortfall was a useful representation of social media’s ad struggles.

For example, in China, many Western platforms are blocked, paving the way for homegrown sites like Douyin to proliferate. In India, TikTok was banned in 2020, leading to a higher rate of penetration for Snapchat. Additionally, the penetration rate for social users in India is relatively low due to the country’s more rural population and slower adoption of devices with internet connectivity.

Although short-form video platforms like Kuaishou and ByteDance’s Douyin managed to marginally grow their ad revenues in 2022, it was a rough stretch for China’s BAT trio of legacy giants—Baidu, Alibaba, and Tencent. All three were deeply in the red last year but are now set for a strong 2023. Every company we track in China is expected to accelerate its ad revenue growth this year.

Livestreaming made TikTok’s sister app Douyin a retail success in China, where we forecast shoppers will spend $234.75 billion on livestreaming social commerce in 2023, accounting for 45.4% of the country’s social commerce sales.

Next up, if we were to look at the combined total of TikTok and Douyin user numbers around the world, Douyin being the Chinese counterpart, TikTok owned by ByteDance, of course. If we were to look at the combined total of those users, what percentage would the US loss of users account for out of that total? So what percent would that 102 million users being wiped off the slate count for?

The move mimics TikTok’s Chinese counterpart, Douyin, where advertisers have long been able to use search ads to drive traffic or spur app downloads. TikTok’s careers page gives another sign of the company’s ambitions: It currently lists multiple job openings tied to search advertising. Reddit is testing keyword targeting.

And even if you were to combine TikTok and Douyin, there are still more Facebook users. And the last thing I would say is that people think about TikTok as the David to maybe Meta's Goliath, but this is really a Goliath versus Goliath story. We've got TikTok and Douyin with about 34 billion in ad revenue compared to about four times that for Meta. But Douyin wins out when it comes to e-commerce.

Video Shopping Ads are available in Canada, requiring retailers to establish a catalog within TikTok’s business dashboard (rather than using a TikTok Shop account, a feature available only in the US, UK, and six countries in Asia, or via Douyin in China.). Influencers are driving the commerce engine. Engagement rates on TikTok vastly outperform the competition.

TikTok’s parent company, ByteDance, has found ecommerce success in China by adding shopping features to its short-video app Douyin there, with an emphasis on livestreaming. But whether it can replicate that success in the US with TikTok is less clear. We estimate 37.0% of TikTok users will engage in social commerce via the platform this year, but they won’t necessarily be buying from Chinese sellers.

No other market in the world comes close to China when it comes to ecommerce. Its highly competitive digital market has spurred retail innovations that are making their way around the world.

Douyin in China has really been pushing into local services, like food delivery and travel and hotels and tourism bookings where those are also categories that lend themselves very well to the video formats and livestreaming. Sara Lebow:. Yeah. If I were an American tech company, I would definitely be looking to what Douyin is doing as a crystal ball for what TikTok might explore in the US.

Shein, a fast fashion retailer selling out of China, Temu, the US-based subsidiary of the same parent as Chinese retailer Pinduoduo, and TikTok, which is the sister app to China's Douyin, which we talked about on last week's podcast in terms of e-commerce. So my first question, which I'll hand over to you, Sky, is what is the retail opportunity for these companies in the US? Sky Canaves:.

So TikTok has had a very successful roadmap from its Chinese counterpart Douyin in making e-commerce and livestream e-commerce happen through a social platform in just a few short years. I think the information reported that last year in 2022, the gross merchandise value of e-commerce on Douyin had exceeded 200 billion US dollars.

Should we be looking at what sister app Douyin has done and expecting TikTok to do that next? Or are the markets too different? Jasmine Enberg:. I think we can take some learnings from it in terms of where we think TikTok is going, but the US market and the Chinese market are very different. And social commerce has developed in a very different way in both of these markets.

So, just starting from China, TikTok has its origin there, but the name in China is actually called, Douyin. It was a huge success there in China. We forecast that the number of billion users in China will actually surpass WeChat in 2025. In a couple of years. They got into short video, of course, from the start, and then they gradually move into social commerce.