China Digital Digest Weekly: Exploring the Chinese Digital Landscape

Hi folks, we are back with our weekly edition of China’s Digital Digest, wherein we bring you weekly updates on China’s digital space. The report takes a quick glance at China’s complex and rapidly evolving social media landscape by providing updates on the latest happenings across the social media industry. Here are the major highlights of the report.

1. Chinese Retailer Miniso Slams ByteDance-Owned Douyin for Exorbitant Fees

https://www.tech360.tv/chinese-retailer-miniso-founder-criticizes-douyin-high-fees

Douyin, the Chinese version of TikTok with domestic e-commerce operations, has been slammed for charging exorbitant promotion fees amid insufficient sales by the head of Chinese budget retailer Miniso Group, which runs multiple stores on the ByteDance-owned platform.

Miniso founder and chief executive Ye Guofu, 47, levelled his criticism of Douyin via his WeChat post that showed a video from online influencer Johnknow-nothing, who asserted in his recorded post that the ability of merchants to sell goods on the ByteDance platform was “deteriorating”. Miniso’s stores on Douyin sell a variety of lifestyle products such as beauty tools, toys and apparel. Citing figures from the video, Ye said Douyin in 2023 recorded a gross merchandise volume (GMV) of 2 trillion yuan (US$276 billion), of which 40 percent was refunded, while total advertising revenue reached 400 billion yuan in the same period.

2. TikTok Shop Expands to Spain and Ireland Amid Global E-Commerce Push

https://marketing4ecommerce.net/en/tiktok-shop-ireland-and-spain/

TikTok is gearing up for a European expansion of its e-commerce business, as the Chinese-owned short-video service seeks to broaden its online shopping footprint globally amid slowing growth and geopolitical challenges.

ByteDance-owned TikTok in recent months has been inviting vendors to join its online shopping platform in Spain. Merchants are also being encouraged by TikTok to join its e-commerce service in Ireland, although it is unclear when that would launch. On the company’s official seller page, Ireland has been listed as an “invite-only” market along with Spain. These moves mark TikTok Shop’s first push into Europe in three years, after its British debut in 2021.

3. TikTok CEO Sought Musk’s Input Ahead of Trump Takeover, Report Says

https://www.reuters.com/world/us/tiktok-ceo-sought-musks-input-ahead-trump-administration-wsj-reports-2024-11-23/

ByteDance-owned TikTok Chief Executive Officer Chew Shou Zi has sought input on US matters from Elon Musk, a close adviser to US president-elect Donald Trump, The Wall Street Journal has reported.

Chew initiated messages with the Tesla CEO in recent weeks and asked for his opinions on topics ranging from the incoming administration to potential tech policy, the report added. Both executives have not discussed specific measures to keep TikTok running in the United States, the Journal reported, adding that Chew has kept ByteDance’s senior leadership informed of the talks, with executives cautiously optimistic about finding a way forward.

ByteDance executives had been hedging their bets before the US election, meeting with people close to Trump and with people close to Democratic nominee Kamala Harris, the report added.

4. Kuaishou Gets Police Warning Over Content Moderation

https://finance.yahoo.com/news/tiktok-rival-kuaishou-gets-police-093000487.html

Chinese police have issued warnings to short video app operator Kuaishou Technology over alleged lapses in content moderation and protecting minors, according to a notice from local authorities.

The Beijing-based video platform was called out for missteps that authorities say violate the country’s Cybersecurity Law, including failing to “deal in a timely manner with information prohibited by local laws from being published or transmitted” and inadequate protection of children on its platform, according to a notice published to the WeChat account of the National Cybersecurity Information Centre. The administrative penalty comes as Beijing has been seeking greater control over the digital lives of the younger users.

5. China’s Second-Richest Man Demands Apology From ByteDance Founder

https://e.vnexpress.net/news/business/companies/china-s-second-richest-man-demands-apology-from-country-s-richest-over-online-attacks-4819258.html

Zhong Shanshan, China’s second-wealthiest man, has made a surprise demand that the country’s richest man, founder of ByteDance, apologise for the perceived role that TikTok’s Chinese sibling Douyin has played in “spreading rumours and misinformation”.

Zhong Shanshan, 69 – founder and chairman of China’s largest packaged drinks company Nongfu Spring and the country’s second-richest person, lashed out at Zhang Yiming, 41, for allowing misinformation to spread on ByteDance’s social media platforms and damage Zhong’s reputation. Zhong’s remarks, part of a public speech made in the southeast Chinese province of Jiangxi, were widely reported by Chinese media. The billionaire entrepreneur and the company he helms became the target of online nationalist trolls earlier this year over the perceived Japanese styling of its packaging, triggering a boycott by angry consumers.

The series of attack campaigns led to a debate about the responsibility of the Chinese government, opinion leaders, the public and social media in fermenting nationalist passions, but Zhong is the first businessman to openly point the finger at online platforms.

6. NetEase’s Overseas Gaming Studio, Worlds Untold, Announces Suspension of Operations

https://pandaily.com/neteases-overseas-gaming-studio-worlds-untold-announces-suspension-of-operations/

Worlds Untold, a subsidiary of NetEase Games, announced a pause in its operations.

The studio, founded by Mac Walters, the scriptwriter behind the “Mass Effect” series, in November 2023, was in the process of creating an action-adventure game. The game, set in the near future, was to take place in a world filled with grandeur, mystery, and exploration. In a LinkedIn post, Walters shared that the team had made the tough call to halt operations at Worlds Untold, while they search for new partners to bring their vision to life. He underscored that this was not a decision taken lightly and that the team takes immense pride in their collective creation.

7. Jack Ma Returns to Alibaba Campus in Sign of Support

https://www.benzinga.com/24/11/42245036/alibaba-co-founder-makes-rare-appearance-at-company-campus

Jack Ma, founder of Alibaba Group Holding, visited the company’s campus in Hangzhou, capital of eastern Zhejiang province, in a show of support for the e-commerce empire he created a quarter of a century ago, according to employees.

Ma’s visit was his first known trip back to his hometown since March 2023, when he visited a school that he established. While Ma resigned as Alibaba’s executive chairman in 2019 and has kept a low profile since 2020, he remains widely seen as the spiritual leader of the company and the face of Chinese entrepreneurship.

His low-key visit to Alibaba’s campus comes at a time when the Chinese government is trying to boost confidence in the country’s private sector, as the world’s second-largest economy grapples with a slew of challenges, ranging from a persistent property market downturn to renewed geopolitical headwinds after US president-elect Donald Trump threatened to levy additional tariffs on Chinese imports.

8. Meituan’s Quarterly Revenue Soars 22% on Local Commerce Growth

https://www.reuters.com/technology/chinese-food-delivery-giant-meituan-beats-quarterly-revenue-estimates-2024-11-29/

Chinese food delivery and on-demand service giant Meituan has reported a 22.4 percent gain in revenue in the third quarter on the back of strong growth in its core local commerce business, boosted by demand for its discounted meals.

Revenue for the three months ended September 30 reached 93.6 billion yuan (US$12.9 billion), up from 76.5 billion yuan a year earlier, helped by supply-chain upgrades that improved efficiency in on-demand deliveries, the Beijing-based company said. Adjusted net profit for the quarter jumped 124 percent year on year to 12.8 billion yuan.

9. Temu, Shein Branch Deeper Into Selling Toys During Holiday Shopping Season

https://www.pymnts.com/news/retail/2024/temu-and-shein-target-toy-sales-while-growing-in-us-and-europe/

Fast-growing specialty e-commerce sites such as PDD Holdings’ Temu and its rival Shein are branching deeper into the business of selling toys, as many American and European shoppers prepare to seek out steep bargains during the Black Friday weekend.

In previous years, Temu and Shein – which sell primarily from smartphone-based apps – would not have been the usual places for shoppers to buy toys and other holiday gifts. The sites face concerns from regulators and US-based consumer product makers about fakes and counterfeits. The competing platforms serve as America’s digital “dollar stores”, offering mostly unbranded items – from bath towels and clothes to home appliances – at low prices. Now, both Temu and Shein are looking to win a bigger slice of the global market for toys, which fuel sales for retailers during the holiday season.

10. Alibaba Merges Domestic, Global E-Commerce Units Amid Intensifying Competition

https://www.financeasia.com/article/alibaba-combines-domestic-and-international-e-commerce-business/499568

Alibaba Group Holding will merge its domestic and overseas e-commerce operations into one unit and named Jiang Fan, the tech giant’s 39-year-old heir-apparent, as CEO, the company has said in a statement.

The reorganisation is the largest since Alibaba carved up its sprawling business empire into six distinct units in early 2023. It comes as China’s largest e-commerce firm has made moves seeking greater synergy across its domestic and international supply chains amid intensifying competition with domestic rivals such as Pinduoduo owner PDD Holdings, which has been expanding aggressively in international markets with its shopping app Temu in recent years.

The new unit, officially named Alibaba E-commerce Business Group, will integrate the Taobao and Tmall Group, Alibaba International Digital Commerce, 1688 Marketplace, Idle Fish and other e-commerce operations. In his new role, Jiang will report directly to Alibaba CEO Eddie Wu Yongming.

11. Temu Owner PDD Sees 10% Plunge in Pre-Market Trading Despite 44% Revenue Growth

https://www.biz360.tv/pdd-holdings-sees-10-pre-market-plunge-despite-44-revenue-growth

PDD Holdings shares plunged by more than 10 percent in pre-market trading, despite a 44 percent rise in third-quarter revenue, as concerns around China’s economic slowdown and fierce e-commerce competition weigh on investor sentiment.

The owner of the budget-focused shopping app Pinduoduo and its overseas sibling Temu on Thursday reported 99.35 billion yuan (US$13.7 billion) in revenue in the three months through September. Net income jumped 66 percent year on year to 24.98 billion yuan. Intense price competition has emerged in China’s e-commerce market amid weak consumer spending and a challenging macro environment in the world’s second-largest economy.

12. Meituan Aims to Launch Meal Deliveries by Drones in Hong Kong

https://www.tech360.tv/meituan-plans-introduce-drone-deliveries-hong-kong-low-altitude-economy

Food delivery giant Meituan is looking to launch its drone delivery services in Hong Kong, joining a slew of Chinese tech giants that are searching for new growth in the city amid stiff competition on the mainland.

Meituan aims to be one of the first companies to operate a drone delivery fleet in Hong Kong, where the government is moving to boost its low-altitude economy, company vice-president Mao Yinian said during a talk at the Hong Kong University of Science and Technology. The company, which already offers drone deliveries in major Chinese cities including its home base of Beijing, as well as in Shanghai and Shenzhen, will apply to join Hong Kong’s low-altitude economy regulatory sandbox, said Mao, who heads Meituan’s drone delivery unit.

Wrapping Up

The vast and diverse nature of the Chinese Social Media space makes it incredibly challenging to keep a tab on the rapid developments taking place. However, China’s Digital Digest brings you all the latest updates from there to keep you abreast of all the evolving trends.

To delve deeper into the findings of our latest report, click here.