June 16, 2024

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ByteDance, Pinduoduo launches overseas e-commerce sites in defiance of Amazon

ByteDance, Pinduoduo launches overseas e-commerce sites in defiance of Amazon

ByteDance, owner of TikTok, has launched a women’s fashion website called If Yooou. Pinduoduo has launched an e-commerce website in the US called Temu. The two companies are the latest Chinese tech giants looking to penetrate the international e-commerce market dominated by Amazon.

Mike Kemp | Pictures | Getty Images

Bindudu And TikTok owner ByteDance launched overseas e-commerce sites in the past few months, aiming to take action in selling Chinese products to foreign buyers.

This move puts the two Chinese tech companies on a collision course with Amazon Because it is expanding internationally.

Pinduoduo, one of the largest e-commerce companies in China, Launched an American shopping site called Temu In the past month, it has sold products in categories from fashion to sports and electronics.

Weeks later, ByteDance, the owner of the Beijing-based short video app TikTok, launched a fashion website called If Yooou. Currently shipping to the UK, Spain, Italy, Germany and France.

Both companies are looking to replicate the success of Shein, the Chinese fast fashion brand that is said to have Now worth $100 billion It has found a large client base in the United States and elsewhere.

ByteDance and Pinduoduo also rely on cross-border e-commerce – selling Chinese goods to consumers abroad. The US and European markets also present an opportunity for growth.

The overseas payment comes at a time when China’s tech giants are looking for new ways to grow such as the domestic economy Still facing challenges As a result of Beijing’s strict policies to control Covid and the deterioration of the global macroeconomic environment.

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“I think ByteDance and [Pinduoduo] seizes the opportunity to apply its unique innovations in social commerce” in overseas markets, said Jacob Cook, CEO of WPIC, an e-commerce technology and marketing company that helps foreign brands sell in China, according to CNBC.

Pinduoduo declined to comment for this story, while ByteDance did not respond to a request for comment.

Pinduoduo and ByteDance Ecommerce Strategy

Pinduoduo’s cross-border e-commerce strategies, also known as PDD, and ByteDance will be different due to their different strengths.

In China, PDD has grown rapidly by building direct links with suppliers and offering deep discounts. This can help when it comes to sourcing products to sell in the United States and sell them at low prices.

Meanwhile, ByteDance runs TikTok – one of the most popular social media apps in the world.

Cooke said ByteDance’s algorithms for understanding consumers on Tiktok, “as well as the potential to benefit from the TikTok ecosystem of commerce, are huge advantages.”

The Chinese company is not new to e-commerce abroad. In the UK, it has a TikTok shopping feature where brands and influencers create videos on products and users can purchase these products via the app.

But she has not yet found success.

[Pinduoduo and ByteDance] You face poor brand recognition and need to build user trust.

Dmonstudio, a women’s fashion website previously launched by ByteDance, has shut down after just a few months of operation. And Fanno, another ByteDance e-commerce site, didn’t have much momentum.

So-called live shopping is very popular in China and some countries in Asia, but it hasn’t really taken off in Europe or the United States. financial times It reported in July that TikTok had abandoned plans to expand its live streaming e-commerce strategy in Europe and the United States

This may be a reason why ByteDance continues to use an e-commerce shopping website to accompany its TikTok shopping strategy.

ByteDance and Pinduodudo are two new Chinese companies looking to enter international markets. Ali Baba And the JD.comthe two largest e-commerce companies in China Overseas expansion in the past few years.

Amazon Challenge?

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One reason is that consumer behavior outside of China tends to favor the Amazon model, according to Cook. Customers usually go to Amazon to find specific products or brands they’ve already decided to buy, he said.

In contrast, Chinese platforms such as Alibaba’s Tmall and JD.com “act like virtual malls where people browse and engage in a digital social experience.”

Cook said Pinduoduo and ByteDance “could eliminate Amazon’s stake in certain segments as Shein did, but ultimately would not threaten Amazon’s dominance of the US e-commerce market.”

“They are experiencing low brand recognition and need to build user trust.”

How Shein in China became more valuable than H&M and Zara combined