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. Trump Says ‘I’m for TikTok’ as Potential US Ban Looms
Republican presidential candidate Donald Trump said he supports TikTok even as a potential ban looms if Chinese parent company ByteDance fails to divest the short video app’s US assets.
As president, Trump tried to ban TikTok and Chinese-owned WeChat in 2020, but the move was blocked by the courts. In June 2021, President Joe Biden withdrew a series of Trump-era executive orders that sought to ban WeChat and TikTok. Trump holds a majority stake in the social media company Trump Media and Technology Group which operates rival network Truth Social. Trump Media has a US$7 billion market capitalization despite quarterly revenue of around US$770,000 - comparable to two US Starbucks shops.
2. TikTok Forecasts Spending On K-Culture to Hit Us$143 Billion by 2030
Global spending on Korean cultural products is forecast to nearly double to US$143 billion by 2030, according to new research released by TikTok and analytics company Kantar.
The soaring popularity of so-called K-content has been amplified by social platforms, where users have voiced their appreciation of Korean drama, pop music, cuisine, and cosmetics. TikTok, which initially rocketed in popularity with short clips of young people dancing to popular songs, has become a gathering place for K-pop fans online. In recent times, that has expanded to include more of Korean culture and traditions.
3. China’s Top Ecommerce Influencer Dong Yuhui Exits East Buy to Push Own Venture
China’s top live-streaming influencer, Dong Yuhui, has left East Buy, the e-commerce arm of private tutoring giant New Oriental Education & Technology Group, marking one of the most striking exits in the sector and sending the US-listed parent’s shares down in pre-trading.
The 31-year-old Dong, a former teacher who gained fame and wealth in China’s live-streaming e-commerce sector, left his employer because of “career aspirations, commitment to his other pursuits and personal time arrangements”, Hong Kong-listed East Buy said in a filing. Dong’s resignation is effective immediately. As part of that departure, East Buy agreed to sell Dong’s namesake venture – called Time with Yuhui – to the influencer for 76.6 million yuan (US$10.5 million), according to a separate filing.
4. ByteDance-Owned Douyin Said to Miss First-Half Ecommerce Sales Target
ByteDance-owned Douyin, the Chinese version of the global hit short video platform TikTok, missed its target gross merchandise value (GMV) in the first half of 2024, according to a local media report, amid weak consumer spending and increased competition in the domestic e-commerce market.
Douyin, which launched a stand-alone shopping app in March, recorded a lower-than-expected GMV of 1.4 trillion yuan (US$193 billion) in the first six months of the year, compared with its previous goal of 1.5 trillion yuan. Douyin’s e-commerce growth rate slowed to 30 percent after the second quarter, down from more than 60 percent achieved in January and February. That was in line with a June estimate by Goldman Sachs, which forecast Douyin’s GMV growth rate to hit 24 percent this year, a steep decline from 60 percent and 80 percent in the previous two years, respectively.
5. Alibaba Bets On Taobao, Tmall Clothing Retailers to Go Up Against Shein, Temu
Alibaba Group Holding aims to supercharge the business of clothing merchants on Chinese shopping platforms Taobao and Tmall with overseas shipment subsidies, as the e-commerce giant intensifies competition against Shein and Temu.
Eligible merchants on Taobao and Tmall can enroll in Alibaba’s new pan-clothing global free shipping plan, so they can sell their products directly to consumers in several markets outside the mainland, the Hangzhou-based company said in a statement. Taobao and Tmall merchants who sell goods in the pan-fashion category – including men’s and women’s garments, sports and outdoor apparel, shoes, bags, and accessories – are eligible to take part in this program.
6. China’s Media Giants Taobao And Douyin Join Apple Vision Pro
Almost a month on from Apple’s Vision Pro official China release, Douyin has become the latest media behemoth to launch an exclusive experience for the headset.
The short video platform announced via its WeChat page the release of Douyin VR Live. The feature enables users to experience panoramic live streaming and gift 3D effects to creators while viewing content. Some domestic retailers anticipated the arrival of the Vision Pro ahead of its official rollout. Alibaba’s Taobao platform, for example, unveiled a beta version of its e-commerce application designed exclusively for the wearable in April. On June 27, the shopping titan updated its app, which now lets users test drive cars and redecorate rooms from the comfort of their homes.
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.
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