China’s short video sector has evolved into a fiercely competitive battleground, with major tech giants such as Tencent, Baidu, and Kuaishou vying for dominance. Notably, ByteDance’s Douyin (known as TikTok internationally) has emerged as a prominent player in this landscape. Since its launch in September 2016, Douyin has witnessed remarkable success, amassing an impressive 743 million Daily Active Users (DAUs) as of Decemeber 2023. This extraordinary growth underscores Douyin’s immense marketing capabilities and its potential as a robust promotional platform.

 

 

Comprehending the marketing prowess of Douyin

Douyin stands as the world’s top short-video platform and the second-largest social  media platform, with an estimated user base of 835 million anticipated by 2025. In China, as of November 2022, males constitute 54% of its user demographic, and nearly one-third of its users are under the age of 26.

 

In 2018, Douyin, introduced e-commerce functionality by ByteDance, which has since experienced remarkable growth, with its Gross Merchandise Volume (GMV) reaching 800 billion RMB by 2021, and witnessing an astounding 320% increase in June 2022. Among the top 500 best-selling products on Douyin, the Food & Beverage (F&B) and Beauty & Skincare categories dominate, contributing to an impressive 48% of the total GMV, solidifying Douyin’s position as a significant player in the e-commerce industry due to its rapid expansion and extensive user base.

 

Douyin marketing: Enhancing conversion rates and cultivating positive brand perception

On average, Douyin users spend 120 minutes per day actively engaging with content and entertainment, which is twice the amount of time spent by users on other social media platforms like WeChat, Little Red Book, and Weibo. Moreover, Douyin users exhibit a noteworthy level of receptiveness towards advertisements, making it an excellent platform for brand promotion. Around 43% of consumers find Douyin advertising easily acceptable and even enjoyable to watch. This positive response to ads not only enhances brand perception but also boosts the chances of conversion.

 

Understanding the various ad formats available on Douyin

Based on its format, Douyin advertising can be separated into 8 types, each catering to different marketing objectives:

• In-Feed Ads: These ads appear within the user’s content feed as native videos. They blend seamlessly with organic content and can be up to 60 seconds long. In-Feed Ads support various call-to-action options, such as app downloads, website visits, and purchases.
• Brand Takeover Ads: These ads are full-screen videos or images that appear when users open the Douyin app. They offer high visibility and are ideal for creating immediate brand impact. Brand Takeover Ads often link to landing pages or hashtag challenges.
• Hashtag Challenges: Brands can create their own hashtag challenges to encourage user participation and engagement. Users are encouraged to create content around the specific challenge theme and share it with the designated hashtag. This format can go viral and increase brand visibility.
• Branded Effects: Douyin offers a range of interactive effects, filters, stickers, and augmented reality (AR) features that brands can utilize to enhance user-generated content. Branded Effects allow users to engage with your brand creatively and promote viral sharing.
• Top View Ads: These ads are similar to Brand Takeover Ads but provide an extended exposure duration. Top View Ads appear as the first video users see when they open the app and can be up to 60 seconds long. They offer a prime opportunity to showcase brand messaging.
• Douyin Moments Ads: These ads are displayed within Douyin’s Moments feed, where users share their daily activities and updates. Moments Ads support both images and videos and allow brands to reach users in a more personal and social context.
• E-commerce and Shopping Ads: Douyin integrates e-commerce functionality, enabling brands to showcase products and drive direct sales within the platform. Shopping Ads allow users to make purchases without leaving the app, streamlining the customer journey.
• Official Accounts and Mini Programs: Brands can create official accounts and mini programs on Douyin to establish a long-term presence and engage with their audience. These features enable brand storytelling, customer relationship management, and driving conversions.

 

Douyin marketing insights: Maximizing engagement with KOLs and KOCs

Brands are actively utilizing Key Opinion Leaders (KOLs) on Douyin to target Generation Z consumers and expand their outreach. KOLs possess the power to make brand advertisements go viral and attract a substantial user base. Nevertheless, there are certain factors that brands need to consider when collaborating with KOLs in China.

One crucial aspect is selecting KOLs who consistently create high-quality content that resonates with the brand’s intended audience. It is essential to align with the interests and values of these KOLs. Brands should place trust in KOLs, allowing them to maintain their authenticity while also providing input and collaborating on content creation.

 

Alongside KOLs, micro-influencers, known as Key Opinion Consumers (KOCs), also play a significant role in Douyin marketing. Douyin houses numerous micro-influencers, and incorporating KOC marketing offers several advantages. These influencers come across as more authentic and tend to display stronger brand loyalty. Douyin’s advanced algorithms cater to specific user interests, enabling KOC content to reach niche groups and effectively engage like-minded consumers.

Douyin live-streaming encompasses two strategies: one involves leveraging KOLs to promote products, while the other entails hosting live-streaming sessions on the brand’s official account. Employing KOLs/KOCs is particularly suitable for nascent brands, granting them access to the influencers’ wide-reaching audience. However, even established brands can benefit from the influential reach and audience of KOLs/KOCs, thereby

enhancing visibility, credibility, and engagement.

 

Apart from the above two classic strategy, now as the continuous advance of virtual reality and the emergence of the concept of Metaverse, digitala hosts are sweeping the ecosystem of livestreaming. Douyin and the brands that housed in this platform change the mindset and move their eyes to this brand new track and longing for standing out. Therefore, multiple brands choose virtual anchors appear in their live commerce, including L’Oréal, KANS, Perfectdiary.

Some of them use virtual anchor to interact with their actual anchor, bringing a new mode for customers to impress them. While others only set their virtual anchors in idle time to get free time traffic. In this way, they can constently expose themselves in the view of targeted customers so as to build the brand  and deepen their impression. According the statistics of Statista and iResearch, the market size of digital host sector will reach to 2.5 billlion RMB in 2024, which is a gigantic figure.

From the domestic investment and financing data in recent years, the capital market is optimistic about and continues to increase the investment in the digital person industry: On the one hand, since 2020, the number of investments for digital human enterprises has grown rapidly; on the other hand, the overall investment in the digital human industry has developed from a slow and steady growth in the early stage to a significant increase in the last two years, indicating that the overall activity of investment and financing in the digital humans market has continued to be high.

 

Domatters hold the view that virtual hosts are welcomed by both businesses and customers for 3 key factors.

• To meet the individual’s general sensecompanionship under individualized social situation

ACGN culture has taken root in China for nearly 30 years since the tide of Reform and opening-up, and a generation of people have grown up under the influence of ACGN culture. Gen Z have entered university and their consumption ability has gradually increased, while the post-05s have already entered the stage of “digital life”, and their smartphones have become the standard equipment in daily life.

Compared with the maverick label of the Gen Y, above two generations have stronger personalities. Gen Z and Gen Alpha have stronger desires to express themselves, and are also more sensitive to themselves, with a strong emotional need for virtual livestreamers and a higher degree of favorability.

With the gradual entry into the individualized society, the young generation generally have a very strong sense of loneliness, and the virtual anchor of the two dimentional environment can break the first impression of the cage faster, and not subject to the limitations of time and space, to achieve the whole process of accompaniment, this accompaniment was born of the emotional support of the anchor image and the viewer for the very strong binding.

• Real people and virtual anchor can explore more “gameplays”

In the existing well-known virtual anchor operating companies, the “people in the middle” behind the virtual anchor and the anchor itself are generally strictly isolated to prevent the “people in the middle” from entering the fans’ field of vision and affecting the virtual anchor’s operation and the virtual anchor’s persona.

But on the other hand, the possibility of interaction between real people and virtual anchors has not been thoroughly explored.

 

• The image of the virtual anchor has cross-scene properties

A large number of manufacturers and live broadcast platforms have begun to cultivate their own virtual anchor image, firstly because the digital image is more affinity to the new generation group, and the other motive is that the virtual anchor has a wide range of application scenarios.

 

virtual anchor manufacturing can be customized according to the demand of the reality, and the image of the virtual anchor is not only used for live broadcast scenes, its image in the film anime, games can be linked to each other. The corporate image, regional endorsement image, as well as the virtual image of certain functional departments, can also be in the form of live broadcasts to bring targeted customers closer, or to achieve better publicity effects.

 

Pros and cons of virtual anchor

Pros:

• Reduce labor costs

Virtual hosts do not need to pay wages, benefits and other labor costs, and do not need to rest, do not need to eat, do not need to sleep, etc., which can greatly reduce the enterprise’s labor costs.

• Improve efficiency

Virtual anchor can be automated through technology live, only need very little human intervention, which can greatly improve the efficiency of the live broadcast, but also to ensure the stability and continuity of the live broadcast.

• Create a unique image

Virtual anchor is not subject to color, gender, age and other restrictions, can create a variety of unique image, which can attract more users and viewers, and can allow companies to establish a unique brand image.

• Protection of privacy

Virtual anchor does not need real identity information, which can protect the privacy and security of the anchor, but also can avoid some unnecessary disputes and risks.

 

Cons:

• Lack of authenticity

Virtual anchors lack authenticity and cannot establish a real emotional connection with users, which may affect their viewing experience and stickiness.

• Possible technical problems

The virtual anchor is dependent on XR and AI technology to realize, if there are problems with the technology, it may lead to problems such as live interruption and sound distortion, which will also affect the user’s viewing experience.

• Lack ofFlexibility

Human anchors are way more flexible than virtual one because technically virtual hosts are operating by default setting. Once  there are some uncontrollable problems in the livestreaming room like critism or verbal abuse, digital hosts may lack of ability to solve. Apart from that, digital hosts are constrainted by  constraited by scipts, so if customers in the livestreaming room asks some detailed questions about the products, digital hosts may fail to answer.

• The technology cost

The technology cost of virtual anchor is high and requires a lot of human and material investment, especially the creation of virtual IP, which requires companies to spend more energy.

 

Facilitating the connection between brands and Chinese consumers via Douyinstore

1. Createan official account, which serves as the first crucial step.

 

1.1. What is a Douyin official account?

Douyin provides three distinct types of official certification:

• Individual certification: Reserved for celebrities, experts, and Key Opinion Leaders (KOLs).

 

• Organization certification: Available for companies, national institutions, media outlets, and other non-profit organizations.

 

• E-commerce certification: Granted to top e-commerce Key Opinion Leaders (KOLs) and organizations.

 

1.2 Why should brands open a Douyin official account?

 

Brands should consider opening a Douyin official account for the following benefits:

 

• Establishing a brand image and increasing brand awareness.
• Attracting and building a customer base.
• Promoting products effectively.
• Boosting sales through live-streaming and campaigns.
• Gaining access to exclusive analytics functions available only to verified accounts.
• Efficiently managing their fan base.

 

You could also find how to open a Douyin store below this blog.

 

2.1  How to open a Douyin official account?

 

Opening a Douyin brand account is a straightforward process that can be completed in a few simple steps. Here’s a step-by-step guide for registering your account, whether you’re using the PC or the Douyin app.

Before proceeding with the registration process, it’s essential to be aware of the 3 criteria that must be fulfilled to open an official Douyin account:

 

*Company Verification*: Your company must be verified, which requires providing a valid business license during the registration process.

*Open Merchant Section*: Ensure that your homepage’s merchant section is open to the public.

*Minimum 500 Followers*: You must have at least 500 followers to be eligible for opening an official Douyin account.

 

Additionally, please note that a single enterprise is limited to registering a maximum of two Douyin official accounts.

To open an official Douyin account via PC, follow these step-by-step instructions:

 

Here’s a step-by-step guide on how to open an official Douyin brand account via PC:

 

Step 1: Visit the Douyin brand account website at douyin.com

Step 2: Click the “start immediate certification” (立即认证) button to initiate the PC certification process.

Step 3: Use your Douyin app to scan the provided QR code, which will log you into your Douyin account.

Step 4: Check if you have met the required criteria for opening an official account. If any criteria are not yet fulfilled, click the blue captions under each criterion.

Step 5: After clicking the captions, scan the QR code displayed to complete the qualification process.

Step 6: Fill in the required form and make the necessary service fee payment. Then, await validation of your account.

Step 7: Once your account is verified, you can log in to the management back page to start using your brand account effectively.

 

2.2 How to set up an official account through Douyin APP?

 

For Android users, downloading Douyin is simple. You can find the APK by searching on a search engine or use the following link: https://douyin.en.softonic.com/android

 

For iOS users, several extra steps need to be fullied. You need to switch your iOS store location to China.

Step 1: Open the Douyin app and click on “Me” (我) at the bottom bar.

 

Step 2: Unfold the side column and click on “Douyin Creator Service Center” (抖音创作者中心).

 

Step 3: Click on “All” (全部) and then select “Open official account” (企业号开通). This will create an on-trial brand account immediately without any specific requirements.

 

Step 4: You’ll get a 60-day free trial with limited functions for your brand account.

 

Step 5: Follow the provided instructions and fill in the form with the required information and certifications, including:

 

– Type of account (company or individual)

– Industry category

– Region of registration (supports oversea companies)

– Region of operation

– Presence of offline stores

– Business license

– Operator name

– Operator phone number

– Operator email

By adhering to these uncomplicated instructions, you can promptly and effortlessly create a Douyin official account, enabling you to connect with a vast audience of potential customers on this widely-used platform.

 

Need professional services to create your Douyin account and store?

Reach out to Domatters. We’d be happy to help you with our premuim and professional knowledge and skills.

 

How to leverage your Douyin stores?

 

Douyin provides multiple channels for selling products:

 

• KOLs can generate commission fees by opening shop windows with links to other stores, capitalizing on their popularity to target and sell products to their fans.
• Open shop windows with links to products on third-party platforms like Taobao and Tmall.
• Establish your Douyin store and directly sell products to customers. Some e-commerce players opt for an in-built Douyin store, which eliminates the need to redirect customers to a third-party platform. Douyin offers comprehensive support to merchants, contributing to the success of their business.

How to open a Douyin store?

Step 1: Authenticate a Douyin official account.

 

We have prepared an extensive, step-by-step manual for the verification process, accessible through this provided link.

 

Step 2: Choose your store category.

 

After successfully setting up your account, you can access the Douyin backend on your computer for registration using the following link: https://fxg.jinritemai.com.

 

As you log into your Douyin account, please ensure to select the appropriate Douyin store type that best matches your business:

 

• Enterprise store (企业店): You can sell one or more authorized/own brands with complete brand or distribution authorization, even without brand qualification.
• Franchise stores (专卖店): You can sell one or more authorized brands but must provide a secondary brand authorization.
• Specialty store (专营店): You can sell two or more authorized/own brands but must provide a tertiary brand authorization or distribution authorization.
• Flagship store (旗舰店): You can sell one or more authorized/own brands but must provide exclusive direct brand authorization.
• Official flagship store (官方旗舰店): You can sell one or more authorized/own brands but must provide exclusive direct brand authorization with clear “open flagship store” words.

 

Step 3: Wait for verification and complete identification.

 

After selecting the appropriate store type, proceed to pay the required fees and complete the registration process. The platform will take 1 working day to conduct a qualification audit. For account verification, you need to provide either 1) your private bank card number and bank reserved cell phone number, or 2) use public account payment verification.

 

Step 4: Pay the margin and start the business.

 

Once you have paid the necessary margin, you can commence your business operations. You can access the management page and click on “channel management” or “official account” to associate your multi-channel brand account or Douyin brand account and add your products, or simply download the Douyin store app to get started.

 

How much does it cost to run your Douyin store?

The expenses consist of two components: a technical service fee and a margin.

 

Technical service fee

 

The technical service fee comprises two parts – the “basic technical service fee” and the “stepped technical service rates.”

 

For the basic technical service fee, Douyin imposes a commission on sales ranging from 0.6% to 5%, depending on the industry. You can find the precise rates for different sectors by referring to this link. For instance, skincare & makeup is charged at 4%, female clothing at 5%, and luxury products at 5%.

 

As for the stepped technical service fee, it fluctuates based on the unit price of the commodity settlement.

 

Margin

 

Margin refers to the funds deposited by the merchant to the platform, serving as a guarantee for adherence to platform rules and agreements, and ensuring the quality of goods and services. It consists of two components – the basic margin and the floating margin.

 

The basic margin amount is influenced by the main store’s qualification and the category of operation. In cases where the store operates multiple categories, the payable basic deposit is determined by the highest amount among the current store operation categories. The basic margin varies for enterprises, ranging from 2,000 RMB to 300,000 RMB, depending on the industry. You can find specific amounts for different sectors via this link. For instance, skincare & makeup requires a basic margin of 5,000 RMB, female clothing requires 2,000 RMB, and luxuries require 50,000 RMB.

 

On the other hand, the floating margin is determined based on the store’s online payment sales over the last 30 days and can range from 0 RMB to 20,000 RMB.

 

Douyin store functions

 

The Douyin store offers an array of comprehensive tools to facilitate your business operations. These functions encompass campaigns & promotion, customer service, data analysis, and product management, enhancing efficiency and convenience in managing your business.

 

Find a local agency to perform on Douyin

At Domatters, we are a team of professional marketer who are deeply passionate about social media in China. Our expertise lies in creating powerful strategies and compelling content to engage with the Chinese audience on platforms like WeChat, Little Red Book, Douyin, Weibo, and many others.

 

If you have a particular project in China, it’s crucial to incorporate social media wisely. Begin with branding efforts before transitioning to e-commerce.

 

Feel free to reach out to us to explore the best-suited options for your project in China! Let’s get started today!